Saturday, May 31, 2025

US and Canada travel industry witnessed a wave of major shifts in the final week of May 2025 as airlines rushed to optimize operations, strengthen loyalty programs, and respond to mounting financial and competitive pressures. United and JetBlue led the charge with a new loyalty partnership that grants United long-awaited access to JFK, while American Airlines introduced Touchless ID technology to streamline airport security and Southwest ended its free baggage policy in a bid to boost revenue. At the same time, Brazil’s Azul filed for Chapter 11 bankruptcy to restructure over $2 billion in debt, and carriers including Delta, Frontier, Air Canada, and others made strategic route changes across North America, Europe, and Asia to adapt to evolving demand and prepare for the peak summer travel season.

In a week packed with significant developments across the global airline industry, several major U.S. and international carriers unveiled sweeping changes aimed at improving loyalty perks, streamlining passenger experience, bolstering profitability, and restructuring operations. From strategic alliances to financial shakeups and route overhauls, the final week of May 2025 marked one of the busiest periods for air travel announcements this year.

United Airlines and JetBlue Airways confirmed this week that they are launching a new partnership—dubbed the “Blue Sky” deal—which will primarily benefit members of their respective frequent flyer programs. Starting this fall, United MileagePlus and JetBlue TrueBlue members will be able to earn and redeem miles across both carriers. In addition to mutual earning benefits, elite members will enjoy reciprocal perks such as priority boarding, preferred seats, and access to same-day standby, regardless of which airline they’re flying.

The deal also includes a critical asset swap: JetBlue is handing over access to takeoff and landing slots at New York’s John F. Kennedy International Airport, where United currently has no operations. The agreement will allow United to launch up to seven daily roundtrips from JFK, a strategic move to reestablish its presence in New York’s competitive aviation market. In exchange, JetBlue will gain access to eight flights from United’s Newark hub as part of a net-neutral swap.

Additionally, United will shift its ancillary travel service sales—including hotels, rental cars, and travel insurance—to Paisly, JetBlue’s e-commerce platform, unifying the two airlines’ digital sales strategies.

American Airlines has introduced a for AAdvantage members who also participate in the TSA PreCheck program. The system, known as , is now active at several key airports, including Washington Reagan National (DCA), New York LaGuardia (LGA), Atlanta Hartsfield-Jackson (ATL), and Salt Lake City (SLC). Travelers who opt in can now verify their identity using facial recognition technology that cross-references their passport or Global Entry images, enabling them to pass through security checkpoints without showing a physical ID.

American confirmed that it will continue expanding the system to more airports nationwide throughout the summer.

In a move that signals a major policy reversal, Southwest Airlines has officially introduced on all tickets booked May 28, 2025, and onward. The airline, long known for its “bags fly free” motto, will now charge $35 for the first checked bag and $45 for the second—putting it in line with major U.S. competitors.

The shift follows pressure from a hedge fund investor group demanding higher revenue-generating measures. While the change applies to new bookings only, customers who reserved flights before May 28 will retain the previous baggage allowance. Business Select customers and Rapid Rewards A-List Preferred members will still receive two free checked bags. A-List members and co-branded credit cardholders will get one.

Additional changes on the horizon for Southwest include the installation of an extra-legroom seating section across its 737 fleet and a potential shift from open seating to assigned seats—a dramatic change for the airline’s customer experience model.

Brazil’s Azul Airlines, which operates multiple U.S. routes and maintains strategic partnerships with both United and American, filed for in the United States this week. The filing marks the latest in a series of financial restructurings among Latin American carriers.

Azul said operations would continue uninterrupted and that customers’ tickets, loyalty points, and travel benefits would be honored throughout the process. As part of the pre-arranged restructuring plan, the airline aims to eliminate over $2 billion in debt and optimize its fleet by shedding unprofitable leases. The plan also includes a proposed , with contributions from both United and American contingent on certain conditions being met.

Founded by JetBlue’s original founder, David Neeleman, Azul has grown into one of Brazil’s leading carriers and a critical link between South America and U.S. destinations like Orlando and Miami.

As airlines recalibrate for the summer season, several major carriers announced significant route updates this week—both expansions and suspensions.

On the route reduction front, Mexico’s announced a significant pullback in cross-border service to Monterrey. This week, it ended flights from , and will suspend routes from Chicago, Dallas, Denver, Houston, Miami, and San Antonio.

Meanwhile, revealed plans to convert four of its U.S. routes to seasonal service. Starting this fall, the airline will suspend:

, another major Canadian airline, is also temporarily halting several U.S. routes this summer, including flights from:

• Winnipeg to Los Angeles and Las Vegas
• Kelowna to Seattle
• Edmonton to Atlanta and Chicago
• St. John’s to Orlando

After years of negotiation and no wage increase since 2020, United Airlines and the Association of Flight Attendants-CWA announced they had reached a on a new labor contract. If ratified, the deal will deliver a to flight attendants, including better wages, a signing bonus, and improved scheduling terms.

The union is expected to submit the final proposal to its 28,000 members for a vote in the coming days.

Finally, in a move to meet growing travel demand, has secured approval for a of its Terminal B. This phase will add six new gates, two additional security lanes, updated baggage claim areas, and expanded concessions. It marks the airport’s most significant terminal upgrade in 14 years.