Spirit Airlines urges DOT to block JetBlue, United deal citing antitrust threat
Spirit Airlines on Tuesday urged the Transportation Department to reject a proposed JetBlue Airways JBLU.O and United Airlines UAL.O partnership, saying it was anticompetitive and will prompt large carriers to pursue similar deals.
United and JetBlue said in May their "Blue Sky" tie-up would allow travelers to book flights on both carriers' websites, while interchangeably earning and using points in their frequent flyer programs. Budget carrier Spirit said the deal would mean the smaller JetBlue "will become a de facto vassal of United."
"This anti-competitive tie-up involving a dominant legacy carrier will neutralize the competitive benefit of an existing low-fare competitor," Spirit said.
JetBlue said the filing "misrepresents Blue Sky and twists the facts about how JetBlue and United plan to deliver for customers."
JetBlue said the deal "does not include schedule coordination or revenue sharing. JetBlue and United will remain competitors as they each will continue to publish, price, and market flights independently under their own brand and flight numbers."
Airline news updates: JetBlue to end 'unprofitable' service to Miami
United declined to comment.
In March 2024, JetBlue and Spirit scrapped a $3.8 billion merger agreement after a U.S. judge blocked the deal on anti-competition concerns.
Spirit also said that if the partnership is approved, American Airlines AAL.O and Delta Air Lines DAL.N "will almost certainly seek similar arrangements and smaller carriers may feel compelled to go along, creating an even more highly concentrated industry."
American and Delta did not immediately comment.
Under the deal, JetBlue will provide United access to slots at New York's John F. Kennedy International Airport for up to seven daily round-trip flights, beginning in 2027.
JetBlue, the sixth largest U.S. carrier, and United will also exchange eight flight timings at Newark, New Jersey, and United will move some holiday and travel services to JetBlue's Paisley platform.
JetBlue has been seeking partnerships after a federal judge blocked its Northeast Alliance with American Airlines in 2023.
JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters.
Reporting by David Shepardson; Editing by Franklin Paul and Leslie Adler
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USA Today
11 hours ago
- USA Today
Peter Malnati gave an epic speech to PGA Tour membership. He walks us through his message
DETROIT – Being a player director on the PGA Tour Policy Board has become hard work. On Wednesday, Zach Johnson, who served on the Tour board from 2009-11, applauded the six players who are currently serving during arguably the most turbulent time in the Tour's history. 'When I served on the board, I had to deal with drug testing – should we or should we not? – and FedEx Cup point realignment. That was the heaviest thing I had to deal with and there never was more than three meetings a year,' Johnson said. 'Since COVID, that hasn't been the case.' Peter Malnati, a 38-year-old two-time winner whose two-year board tenure ends later this year, knew what he was getting himself into but ran for the role anyway. He likely would lead the statistical category Strokes Gained: Positive Thinking if Strokes Gained creator Mark Broadie could devise a way to rank it. Adam Schenk may have summed up Malnati's optimistic outlook best: 'He's so nice and he actually means it.' (In this writer's opinion, he's golf's Ted Lasso.) Malnati's speech was a highlight of player meeting On Tuesday, during the Tour's mandatory player meeting, he gave 'an impassioned speech' – that's how fellow pro Mark Hubbard described it – to those players in the 156-man field at the Rocket Classic. [Not all 156 attended. Some were excused because they already had attended a similar meeting the week before at the Travelers Championship or because the meeting time conflicted with a sponsor commitment or other excused absences.] 'Peter talks from his heart,' said fellow Tour policy board member Camilo Villegas. 'He's had a chance to sit on the board and understand why the decisions that have been made in the last few years have been the right decisions at the moment they were made and how the goal posts keep getting moved in an evolving business and constantly analyzing what's for the best because it's a fast-moving and evolving business.' 'I'm pretty honored that anyone referred to it as an impassioned speech, but it was something that I feel really strongly about,' Malnati said in a voice message to Golfweek. Malnati went on to recount the message he delivered to players on Tuesday, during which he admitted he may have signed off on losing his job someday with the Tour implementing a new policy reducing the number of players who retain fully-exempt status from 125 to 100 beginning this year. [Malnati, who entered the week at No. 194 in the FedEx Cup is exempt for next season as the winner of the 2024 Valspar Championship.] What you're about to read is shades of Jim Colbert, a mid-tier Tour member who would go on to win eight Tour titles, who once famously said at a Tour players meeting in 1983, 'It's real simple, boys. Just play better.' When players make arguments that don't directly benefit their own cause, the professional golf ecosystem should listen its hardest … because they're rare. Malnati does that with these remarks. 'I just wanted to say to the membership that I ran for a seat on the board because I cared – really, really, strongly about not losing opportunities and not seeing the Tour get smaller and in my time on the board, both of those things have happened. And because I was on the inside and I saw the thought process, I supported them – doesn't mean they're easy for me. It doesn't mean they don't hurt because they do," Malnati began. 'I feel like the Tour at its core was built around the idea of maximizing playing opportunities and may the best man win. So it hurts to see the best option be to reduce playing opportunities and to see the Tour shrink." Malnati said shrinking Tour makes sense, even if it hurts Malnati continued to share with the membership that there's tangible evidence of late that validates the thought process. [Over the last six months, the Tour has closed nearly $1 billion in new or renewed contracts. Additionally, CBS reported a 13 percent year-over-year ratings increase and a 19 percent year-over-year increase at signature events. Many other metrics are ticking in the right direction, such as its digital platforms.] 'Seeing the success in renewing full-field title sponsorships for long-term deals in the 9-plus-million-dollar per range that's impressive – that's really impressive. It speaks to the fact that these full-field events feel that they're getting good value. And you know it's marked and measurable to see that their fields are stronger than they were when the invitational events that had 120-player fields and then obviously the first year of signature events, they still played at their regular field sizes. That was crushing the full field events and sponsors were really concerned and now to see the momentum where sponsors are back supporting the full-field events at really nice purse levels – that's a huge win for the entire membership.' Malnati wanted them to hear that directly from him and also address the elephant in the room, what he termed 'the thing that we all hate the most, which is the smaller fields and the signature events and the upcoming reduction of fully-exempt cards from 125 to 100 for next season. 'That is simply a re-prioritizing of PGA Tour members that takes guys who go out and play a season on the Korn Ferry Tour and finish in the top 20 and says to them you deserve starts in all the full-field events and I think that's absolutely true now. Is it a great accomplishment to finish in the top 125 on the PGA Tour? It is, it's really good. Is it an even greater accomplishment to finish in the top 100? Yes, I've achieved that twice in my 10 seasons on Tour. I shared that with the membership yet I still think this was the right thing to do because the point of everything we're doing is to identify players who can become superstars and drive the brand forward and so we've got to give those guys that graduate from the Korn Ferry Tour a fair shot to play and so I think going from 125 cards to 100 and then putting the guys that finish 101 to 125 in the next-best conditional category after the Korn Ferry Tour graduates was absolutely the right thing to do even though in a way I was cutting my own head off.' New PGA Tour system to closer mimic Formula 1 How many players would support a decision that might be 'cutting their own head off?' Malnati realizes that barely any players outside the top 100 on Tour generate standalone attention. Sure, there are exceptions like Joel Dahmen (and Tiger Woods wouldn't be Tiger Woods without fields of 156 to beat up on). But fewer players in the arena make it easier for the Tour to market players, easier for fans to know more contenders on a leaderboard, and it's more assuring to sponsors that top-tier players contend or win in their tournaments. Look no further than F1, which is its most popular now, with just 20 drivers who all drive in every race. Same with NASCAR. Athletes in team sports are expected to play in every one of their teams' games. 'Then lastly shared the fact that the system while it creates a very narrow funnel, I said the whole point of what we're doing – the Tour doesn't want to use this language quite this bluntly – we're identifying the top players and get them competing against each other more regularly,' Malnati said. 'So, yes, the signature event model caters to top players, it does, but the thing that I want everyone in that room and everyone on Tour and every fan and every partner to realize is that even though smaller fields are inherently a little bit less competitive because there's fewer guys, the system (we're implementing) right now there's no rules that rule out anyone. J.J. Spaun was not exempt into a single signature event at the start of this year … and he's currently ranked eighth in the world. He played his way there. Maverick McNealy played his way into the top 10 in the world – I think he's 14 right now but he was top 10 in the world. Ben Griffin and Andrew Novak, in terms of everything they're able to accomplish now on Tour, they have played their way into that group of top players. They're going to qualify for the BMW Championship this year, be fully exempt for signature events next year and they've played their way into it. 'This system is aspirational,' Malnati continued. 'The funnel is small, but the opportunity is there and it's still objective. It's still golf. If you shoot low enough scores, you will be there, so, I closed by saying my challenge to Brian Rolapp is to continue to grow the opportunity on the PGA Tour. I want to see him grow it for top players, I want to see him grow it for every single member and my challenge to all the members in the room was to go be as competitive as you can be and believe. But the guys who shoot the best scores are our top players and the more that we do that, the more that we go out and put on a show and strive to become top players, the better our product is, the more fans are going to engage with it and the more opportunity will be for everyone. So that was my spiel …. I'm glad someone thought to call it impassioned. I felt very passionate about it. I still feel very passionate about it but it's definitely been hard.'
CNBC
12 hours ago
- CNBC
Gas prices are expected to fall: ‘It's going to be the cheapest summer since 2021,' one expert says
As Americans gear up for summer travel, prices at the pump may be cooling off. This summer could bring the lowest gas prices in years, and the national average price of gas could fall below $3 a gallon as early as September, says Patrick De Haan, head of petroleum analysis at GasBuddy. "It's going to be the cheapest summer since 2021, when the economy was heavily influenced by Covid," De Haan says. As of Tuesday, the national average for a gallon of gas in the U.S. was $3.21, up roughly 10 cents from two weeks ago, according to the U.S. Energy Information Administration. The spike was largely driven by a jump in oil prices due to the Israel-Iran conflict in the Middle East, but now that both countries have agreed to a ceasefire, De Haan says he expects prices to steeply fall and then resume their "slow decline" over the course of the summer. Typically, gas prices tend to drop throughout the summer due to various factors that increase the supply of gas, De Haan says. That includes jolts to gas prices from the switch to a more expensive summer blend of gasoline leveling off, refineries increasing production and consumer demand softening after early summer travel peaks. "Obviously the Middle East situation is an exception, but now that this is, seemingly for now, in de-escalation, gas prices should resume their slow decline over the course of the summer," De Haan says. Adjusted for inflation, gas prices are near the lowest levels we've seen in the last 20 years, De Haan says. The typical American uses about 3% of their income to fill up their tank every year, De Haan says, whether it's with gasoline or diesel. Due to rising incomes, "Americans are actually spending far less of their income on energy than they have in quite some time," De Haan says. Year over year, the price of gas is down 12%, according to the U.S. Bureau of Labor Statistics' most recent Consumer Price Index report released earlier in June. This is largely due to fears that the U.S. economy is slowing down and an increase in supply of oil from a group of oil-producing nations known OPEC+, CNBC reported in May. Ultimately, De Haan says it's important to remember that most shocks will be temporary. The price of gas is mostly determined by the market for oil, which is constantly reacting to global events — so just as quickly as prices rise, they will often fall once the disruption passes. "Every event that's ever affected us from a pipeline outage … to major hurricanes that impact gas prices, all these events are temporary," De Haan says. "The world is changing every day. It's not always for the worst."
Skift
14 hours ago
- Skift
Extreme Loyalty: The Airlines Turning Travel Into a Competitive Sport
In a drive for loyalty and attention, high-stakes travel challenges are growing in popularity. These airline campaigns generate buzz, but they also raise thorny questions around ethics, sustainability, and long-term brand impact. Earlier this week, JetBlue launched one of the quirkiest promotions by a U.S. airline in years: a loyalty challenge that rewards customers who visit 25 JetBlue destinations by the end of 2025 with coveted perks through 2050. To mark its 25th anniversary, the '25 for 25' campaign offers members of its TrueBlue loyalty program a quarter-century of Mosaic 1 status – part of JetBlue's elite tier – plus up to 350,000 bonus points. Members who hit 15 destinations earn 150,000 points; 20 destinations bring an additional 200,000 points; and those who hit the full 25 unlock the status windfall. Ed Pouthier, the carrier's VP of loyalty and personalization describes the promotion as 'a thank you to the customers who've helped us reach 25 years of incredible growth.' While headline-making in the United States, JetBlue's campaign is just the latest in a global wave of high-concept airline marketing stunts. Abu Dhabi's Etihad Airways launched 'The Extraordinary Challenge' at the end of May. It is offering Etihad Guest members the chance to win up to 5 million miles by flying to each of the airline's 15 new destinations. The first to complete the challenge will win 5 million points; the second, 3 million; and the third, 1 million. In marketing materials, the UAE carrier says that 5 million Etihad Guest miles 'can equate to over 500 Economy flights, or more than 70 trips in Business, or more than 40 unforgettable journeys in First.' To qualify, participants must fly to or from all of the following destinations by May 25, 2026: Addis Ababa, Algiers, Atlanta, Chiang Mai, Hanoi, Hong Kong, Krabi, Medan, Peshawar, Phnom Penh, Prague, Sochi, Taipei, Tunis, and Warsaw. Service to some of these destinations doesn't start until later this year. Getting Creative, But At What Cost? 'Like all companies, airline marketing campaigns have had to get creative to break through and grab people's attention, especially when the subject is somewhat mundane like new seat upholstery or new destinations,' says Scott Keyes of Going (formerly Scott's Cheap Flights). 'But Etihad's campaign of offering 5 million miles to one winner is perhaps the most audacious and attention-grabbing attempt I've seen for a new route announcement.' Chelsea Curran, director of integrated PR, destinations, resorts, and experiences, at Crowe PR, offered additional behind-the-scenes insight about the latest campaigns and similar stunts. 'We've seen airlines, hotels, and hospitality brands jump on PR stunts for years designed to help them spark global attention,' she says. 'These are geared towards doing more than just going viral: They are well designed to help generate long-lasting buzz, deepen brand understanding, and engage and inspire conversations amongst travelers with the Etihad brand at the forefront.' Another high-profile example comes from the Scandinavian carrier SAS. Last year, it ran a campaign that rewarded members of its EuroBonus loyalty program by turning them into 'points millionaires.' To be eligible for the prize, members had to fly with 15 out of 17 SkyTeam alliance airlines. The contest period took place from October 8 to December 31, 2024. Despite having less than three months to fly with 15 global airlines, 940 of the 42,700 participants were successful. Of course, there's the bottom line to keep in mind, but these campaigns can be a relative bargain for airlines. The cost of a stunt like this to Etihad is 'trivial, of course,' says Keyes. 'They can print as many miles as they want, and even assuming a generous 1-cent-per-mile accounting cost, the prize is equivalent to $50,000, a rounding error in an airline's marketing budget." Sustainability Questions For all of the recent hype, is it a simple case of back to the future? The hyper-competitive period following airline deregulation in the 1980s was full of wacky campaigns. However, unlike the 1980s, the socially conscious modern air traveler has an additional angle to consider. A major issue with this style of airline promotion is the risk that they grate against stated sustainability goals and mission statements. Skift called in generative AI to create the best itinerary to visit each of the cities in Etihad's Extraordinary Challenge. The brief was to use flights connecting through the carrier's Abu Dhabi hub as sparingly as possible. Our prompt allowed other airlines to directly connect each destination as long as Etihad flights were used for at least one flight in or out. According to its calculations, flying to and from each of these cities in the most efficient manner possible would add up to about 85,563 miles (137,700 km) in the air. That would generate around 30.3 tons (27.5 tonnes) of CO₂ per passenger, around twice the average annual individual carbon footprint. Depending on how many people enter the competition, it's a challenge that could leave quite a mark. Etihad won Environmental Airline of the Year in 2023 and the airline plans to reach net-zero carbon emissions by 2050. Etihad declined to comment when approached by Skift for this story. Who Pays the Price? There's also the human factor. While it might not cost airlines much to facilitate the stunts or their prizes, it can be contestants who shoulder the cost instead. 'There's concern among some about the amount of wasted travel hours and additional emissions that [the Etihad] competition entails,' says Keyes. 'After all, there will be many people competing to win the 5 million miles, and all but three of them will see their efforts in vain." The recent SAS and JetBlue promotions differ in that there is no limit to the number of successful participants. However, travel that's consumption-focused and performative (staying somewhere only long enough to say you've been there, 'doing it for the 'gram') is the antithesis of sustainable travel, which prioritizes slow travel, reducing carbon footprint, and forming meaningful connections on the ground. 'Given travelers, especially Millennials and Gen Z, are seeking more meaningful, slower trips versus globe-hopping on long, non-stop journeys, this stunt can feel at odds with the rising call for more sustainable and responsible travel,' Curran adds. For its part, JetBlue told Skift: "As a primarily leisure airline, this promotion is designed to celebrate exploration, encouraging customers to connect with friends and family across our network, or visit destinations they may not have discovered yet. "Importantly, the promotion is built around our regularly scheduled flights, not added capacity or special charters created solely for the program," a spokesperson added. Despite the campaign still being in its first week, JetBlue reports "great enthusiasm," with more than 650 bookings already made through a dedicated promotion landing page. The Russian Factor An additional consideration for the Etihad competition in particular is accessibility. While the airline says the competition is 'offering anyone the chance to participate and win,' the required stop in Sochi, Russia, might deter some. This could be because of visa restrictions, safety concerns given the conflict in Ukraine, or the questionable morality of flying into a country at war to win loyalty points. 'Whether intentional or not, the fact that one of the required stops is in Russia effectively excludes most American and Western European travelers from participating,' says Keyes. In the near term, is there a way forward for attention-grabbing airline PR stunts? Curran suggests initiatives that align more toward sustainable travel while still creating buzz. 'This might include challenges that entice travelers to show off their low-carbon travel, creating immersive experiences in local communities or slow travel itineraries that help travelers experience longer, more meaningful trips,' she notes. 'In a crowded market, we'll continue to see travel brands push boundaries and the key to ensuring these will be successful is to anchor them in purpose and your brand mission, not just promotion.' What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
