In this week's airline news, Reuters reports that JetBlue Airways and United Airlines are close to some form of partnership that's expected to at least include frequent flyer reciprocity; American Airlines said it ended talks with JetBlue about a new kind of deal and filed suit to recover money it says JetBlue owes it following the end of their Northeast Alliance;

With demand for air travel in the United States softening amidst economic uncertainty, JetBlue might have more challenges ahead. The airline might have to confront union concerns in order to return to profitability. Unless this happens, JetBlue could continue to struggle in today's industry.

JetBlue Airways and United Airlines have been negotiating a partnership, three industry sources familiar with the matter told Reuters.