American Airlines Sues JetBlue After Failed Partnership Talks

American Airlines has formally ended discussions with JetBlue Airways over a potential new partnership and has taken legal action to recover financial damages stemming from the breakdown of their former alliance, according to Reuters.

In a letter to employees on Monday, American Airlines Vice Chair Steve Johnson confirmed the decision, stating that efforts to rebuild a partnership following the collapse of the Northeast Alliance (NEA) had failed. The NEA, initially launched in July 2020, allowed the two carriers to coordinate routes and share revenue, particularly in the competitive New York market. The initiative was approved by the U.S. Transportation Department just before President Donald Trump left office in January 2021.

The alliance was ruled unlawful in May 2023 after a non-jury trial determined that it violated federal antitrust laws—a decision that was later upheld by an appellate court. Since then, American and JetBlue had been in talks to reestablish a working relationship in a different form.

However, per Reuters, Johnson said the two companies could not agree on a framework that would preserve the advantages of their previous collaboration while also making operational and financial sense. As a result, American Airlines has initiated legal proceedings in a Texas court, seeking more than $1 million in damages from JetBlue, excluding legal fees and related costs.

Related: American Airlines Appeals to SCOTUS Over Blocked JetBlue Alliance

JetBlue, for its part, acknowledged the legal filing and emphasized that it has been cooperating with American in winding down the NEA since the court’s ruling. In an emailed statement quoted by Reuters, a JetBlue spokesperson said the airline intends to review the complaint but declined further comment due to the ongoing litigation.

While American Airlines is pursuing compensation through the courts, JetBlue has continued to explore new partnership opportunities. In February, the company stated it was engaged in talks with multiple airlines and was prepared to invest additional resources to finalize a deal.

Source: Reuters