A PYMNTS Company

American Airlines and JetBlue Agree to $2 Million Legal Fee Settlement with U.S. States

By  |  January 22, 2025
JetBlue

American Airlines and JetBlue Airways have reached an agreement to pay nearly $2 million in legal fees to a group of U.S. states following a court ruling against their now-defunct Northeast partnership. The payment, as reported by Reuters, will be evenly split between the two airlines and distributed among the District of Columbia and six states, including Massachusetts, California, and Pennsylvania.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The legal fee settlement was approved by U.S. District Judge Leo Sorokin in Boston on Tuesday, according to an order reviewed by Reuters. The resolution comes after a contentious legal battle over the airlines’ alliance, which faced opposition on antitrust grounds.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    The states, alongside the U.S. Department of Justice, initiated the lawsuit in 2021, challenging the 2020 partnership that allowed the airlines to coordinate on most flights to and from the Boston and New York City regions. The plaintiffs argued that the agreement would harm consumers by reducing competition, leading to higher ticket prices and fewer travel options.

    Read more: Appeals Court Upholds Antitrust Ruling Against American Airlines and JetBlue Partnership

    American Airlines, the largest U.S. carrier by fleet size, and JetBlue, the sixth-largest low-cost airline, defended the partnership but ultimately faced legal setbacks. Judge Sorokin ruled against the alliance in 2023, a decision later upheld by an appeals court. The airlines have since begun dismantling the agreement.

    As part of the settlement, payments will also go to Florida, Virginia, and Arizona, among the states that joined the lawsuit. According to Reuters, neither the airlines nor state officials involved in the case provided comments on the settlement.

    Source: Reuters