Southwest Potentially Opening Discussions With JetBlue or Breeze

After a Southwest executive board meeting, rumors of a potential merger with another low-cost carrier quickly began to gain traction. Stakeholders are looking at JetBlue and Breeze Airways as the top two candidates for the tie-up.

The theory opened when a Southwest flight attendants union board member, Chris Click, posted hints about major developments on social media. He stated, “Just wrapped up the February Executive Board meeting. Several important initiatives and issues were discussed. Keep an eye out for those communications.”

Click also posted a poll to followers asking which airline Southwest would merge with or acquire. He put his money on Breeze Airways, a low-cost airline headquartered in Utah. Breeze was founded by JetBlue co-founder David Neelman, who previously helped sell Morris Air to Southwest. The poll’s respondents seemed to favor JetBlue for the takeover, with Spirit as a close second.

If Click’s hints were the only evidence pointing towards a merger, the rumors could be pretty easily dismissed. However, speculation has been ongoing for more than a year. The topic was brought up in a May 2024 shareholder meeting, and while the carrier said it had no immediate merger or acquisition plans, it noted that it would “never say never” to the possibility. Southwest is also not new to mergers, taking the top spot among low-cost carriers shortly after acquiring AirTran Airways in 2011.

The opportunity was brought up again last year with a focus on JetBlue, though discussions settled due to threats of antitrust. The same happened in March 2024 when US judges blocked JetBlue’s $3.8 billion acquisition of Spirit Airlines because it infringed on “the core principle of antitrust law: to protect the United States’ markets – and its market participants – from anticompetitive harm.” Another Spirit merger proposal, this time with Frontier, fell through as the carrier filed for Chapter 11 bankruptcy.

While a Southwest merger would be an exciting development, there is no guarantee that a deal will take shape. The airline is in the middle of major restructuring and recently announced that it would be cutting 15% of its employees, selling aircraft, and reconfiguring its famous open seating policy.

FMI: www.southwest.com