Stocks on the move: Jet Blue, American announce partnership to expand options for travelers

Yahoo Finance's Adam Shapiro weighs in on how airlines are faring amid the COVID-19 pandemic.

Video Transcript

- Jet blue and American Airlines announced this morning a code-sharing agreement. Now, they had one of these up until 2014. They're reinstating it. Essentially what it means is if you go to buy a ticket, whether it's JetBlue or American, if JetBlue doesn't have the flight, you'll be offered a flight on American, and vice versa.

You'll also be able to earn miles. This will help them compete against the likes of Delta and United. So shares of JetBlue on that news still trading down right now more than 2%. And you should know that JetBlue is going to report earnings on the 28th of this month.

Then there's American Airlines. They are trading down right now. They're down more than 5% at this point. And late yesterday, American announced that they had sent notices to 25,000 employees that they could be laid off come October 1st. Now, that doesn't mean they will be laid off. But they've got to send out, by law, those notices for potential layoffs.