JetBlue Airways (NASDAQ: JBLU) stock surged 5.02% in intraday trading on Wednesday, following reports of potential partnership negotiations with United Airlines. This development comes as JetBlue seeks to strengthen its position in the competitive airline industry after a federal judge blocked its previous alliance plans with American Airlines.

According to sources familiar with the matter, as reported by Reuters, JetBlue is in talks with United Airlines for a partnership that would focus on connectivity and frequent flier miles, rather than coordinating schedules and pricing. This new approach differs from the previously blocked Northeast Alliance with American Airlines, potentially addressing regulatory concerns that led to the earlier deal's rejection.

The positive market reaction also comes on the heels of JetBlue's first-quarter 2025 earnings report, which met analyst expectations. While revenue declined slightly by 3.1% year-over-year to $2.14 billion, the company managed to narrow its net loss significantly, from $710 million in Q1 2024 to $208 million in Q1 2025. This financial improvement, coupled with the potential United Airlines partnership, appears to have bolstered investor confidence in JetBlue's future prospects.

Additionally, JetBlue announced the launch of new routes and services, including flights to Wilmington, North Carolina, and Norfolk, Virginia, from Boston, as well as new connections between existing focus cities. This expansion aligns with the airline's strategy to build a stronger East Coast leisure network and could contribute to future growth opportunities.