US airline merger speculation is swirling around JetBlue again as the company seeks new deals after previous attempts were blocked by antitrust regulators. The carrier, which hasn't produced a full-year net profit since 2019, recently asked advisers to explore potential combinations with Alaska, United, or Southwest according to Semafor.

A full merger between major US carriers has been rare since the 2013 American Airlines-US Airways combination created the Big Four that control about three-quarters of the domestic market. JetBlue's 2020 partnership attempt with American and 2022 Spirit takeover bid were both blocked by the Biden administration. However, Alaska Air's 2024 acquisition of Hawaiian Airlines did receive approval.

The case for consolidation centers on creating a truly national low-cost carrier. While Southwest pioneered the category, it has evolved into a hybrid model selling extra legroom seats and considering airport lounges. Meanwhile, Spirit has been through bankruptcy twice in under a year, and Frontier has generated a net profit only once in six years. A stronger low-cost player would enhance passenger choice in an industry where average fares have barely changed in a decade despite rising costs.