Overview

• The Supreme Court turned away American Airlines’ request to overturn a lower court ruling that invalidated the 2020 partnership under Section 1 of the Sherman Act.
• In 2023, U.S. District Judge Leo Sorokin and the 1st Circuit Court of Appeals found the Northeast Alliance illegally reduced competition by pooling slots, gates and revenue at New York and Boston airports.
• JetBlue did not join the appeal and has already wound down the alliance while abandoning its planned $3.8 billion merger with Spirit Airlines.
• American Airlines filed a lawsuit against JetBlue seeking millions in alleged unpaid contract obligations stemming from the dissolved alliance.
• The decision represents a rare court-mandated breakup of an airline joint venture and underscores the Biden administration’s aggressive enforcement of antitrust laws.