American Airlines and JetBlue Airways on Thursday announced a new partnership to share routes and loyalty benefits as the two US carriers seek to survive the hit from the coronavirus crisis.

The venture will enable American to launch international flights from New York to Tel Aviv and Athens, while JetBlue will add more flights through New York, the companies said in a press release.

Customers will be able to reserve flights on either company's website and can book a single itinerary using flights from both airlines.

American Airlines and JetBlue's joint venture
American Airlines and JetBlue Airways announced a new joint venture as both carriers face pressure amid an industry downturn due to the coronavirus GETTY IMAGES NORTH AMERICA / Christian Petersen

The announcement comes as carriers struggle to navigate a badly depressed market for travel in the wake of coronavirus shutdowns that devastated air travel this spring.

In early June, American Airlines added more flights for this summer as it saw a brief uptick in demand. However, the outlook for flying has worsened in recent weeks as the US has contended with a resurgence of the coronavirus in southern and western states.

American on Wednesday said it was notifying 25,000 workers that they could be furloughed beginning October 1 as executives warned of weakening demand, joining other major airlines signaling possible layoffs.

Shares of American dropped 6.4 percent to $12.58 in early trading, while JetBlue fell 3.1 percent to $11.18.