Supreme Court Declines to Revive American Airlines–JetBlue Alliance

The decision on Monday lets stand a November 2023 ruling by the 1st U.S. Circuit Court of Appeals in Boston, which sided with the U.S. Department of Justice in its lawsuit challenging the “Northeast Alliance” between the two carriers. The partnership, which had already been dismantled, would have allowed American Airlines and JetBlue to coordinate flight schedules and share revenue on routes in the northeastern United States.

Filed in 2021, the original antitrust lawsuit was part of the Biden administration’s broader initiative to foster competition in the airline industry. The Justice Department, joined by six states, argued that the alliance reduced consumer choice and violated longstanding antitrust principles. Per Reuters, the DOJ maintained that the agreement functioned as a merger in all but name, giving the airlines excessive control over key regional markets.

American Airlines contended that the appellate ruling misrepresented the nature of the partnership and failed to consider its pro-competitive benefits.

Read more: Spirit Airlines Seeks Delay of United-JetBlue Partnership Review Over Antitrust Concerns

The company warned that the decision could have broader repercussions, potentially undermining legitimate collaborations across industries. In its petition, American argued that the court should have required proof of harm to the entire market rather than focusing on customers directly affected by the alliance.

Nonetheless, the Justice Department—under both Democratic and Republican administrations—has consistently defended the verdict. According to Reuters, the DOJ emphasized that the appellate ruling rested on fundamental and widely accepted antitrust standards.

Source: Reuters