Overview

• American Airlines has filed a lawsuit in Texas seeking over $1 million from JetBlue for unpaid costs related to the dissolution of their Northeast Alliance (NEA).
• The NEA, which began in 2020, was ruled anti-competitive by a federal court in 2023 and subsequently terminated, forcing both airlines to unwind their partnership.
• American and JetBlue attempted to negotiate a new alliance but failed to reach an agreement, prompting American to pursue legal action.
• JetBlue is now in advanced talks with United Airlines for a new partnership, expected to be announced this quarter, focusing on loyalty programs and expanded route connectivity.
• Unlike the NEA, the proposed JetBlue-United partnership will avoid coordinating schedules or pricing to mitigate antitrust concerns.