JetBlue Airways announced on July 5, that it will be terminating its Northeast Alliance with American Airlines. This decision comes after a federal judge ordered the carriers to dissolve the agreement. Instead, JetBlue will shift its focus to the acquisition of Spirit Airlines.
While American Airlines stated in June that it would challenge the ruling against their partnership, JetBlue, based in New York, has decided not to appeal the decision. The ruling stemmed from a lawsuit filed in 2021 by the Justice Department, six states, and the District of Columbia, citing anticompetitive practices and seeking to block the alliance.
In a statement, JetBlue expressed its conviction in the procompetitive benefits of the Northeast Alliance (NEA), but acknowledged the court’s determination and its decision not to appeal. JetBlue has initiated the process of terminating the agreement, which will be carried out over the next few months.
The acquisition of Spirit Airlines by JetBlue was set in motion after the launch of the Northeast partnership between JetBlue and American Airlines. The NEA, approved during the final days of the Trump administration, allowed the two carriers to collaborate on passengers, revenue sharing, and schedule coordination. The partnership was seen as a means to enhance competition against major carriers like United and Delta in busy airports in the New York area and Boston.
However, a federal judge ruled in May that the partnership was anticompetitive, ordering the two airlines to dissolve the alliance. American Airlines announced that it will continue to appeal the ruling.
JetBlue stated in a securities filing that it notified American Airlines on June 29 of the termination due to the judge’s ruling, and the termination will take effect on July 29.
