On July 15th, American Airlines and JetBlue officially announced the termination of their Northeast Alliance (NEA), which involved codeshare agreements, bookings, and cooperation within their loyalty programs. However, a federal judge has recently rejected the United States Justice Department's attempt to prohibit American Airlines and JetBlue Airways from forming any similar partnerships, like their now-discontinued Northeast Alliance, with other airlines.
The collaboration between American Airlines and JetBlue was initiated in January 2021, following approval from the Trump administration. The airlines justified the alliance as a means to compete more effectively against United Airlines and Delta Air Lines in the Northeast region of the United States.
The Northeast Alliance, launched in 2021, allowed American Airlines, the country's largest airline by fleet size, and JetBlue, the sixth largest, to offer each other's seats on specific routes. Moreover, the partnership enabled them to share revenue from selected flights and access airport gates, takeoff, and landing slots. The agreement encompassed Boston Logan International Airport (BOS) and New York City's three major airports: LaGuardia (LGA), Newark (EWR), and John F. Kennedy (JFK).
In September 2021, the Biden administration filed a lawsuit against the airlines, alleging that the alliance stifled competition and led to higher prices for consumers. In May, Judge Leo Sorokin of the District Court of Massachusetts ruled in favor of the Justice Department, stating that the Northeast Alliance violated federal antitrust law. However, despite the termination of the alliance, the recent court decision allows American Airlines and JetBlue to pursue other similar partnerships with different airlines in the future.