American Airlines has officially ended partnership talks with JetBlue Airways and filed a lawsuit seeking damages, according to a letter sent to employees by Vice Chair Steve Johnson on Monday.
The two airlines had been discussing a new deal to replace their previous agreement known as the Northeast Alliance (NEA). That agreement was struck down in May 2023 after a non-jury trial ruled it violated U.S. antitrust laws. A federal appeals court later upheld the decision.
“We were not able to reach a new agreement that kept the benefits of the original partnership and made sense both financially and operationally,” Johnson wrote.
JetBlue had previously said in February that it was still open to new partnerships with other airlines and was prepared to invest more money to secure a deal.
The NEA was first announced in July 2020 and received final approval from the U.S. Department of Transportation in January 2021, just before the end of former President Donald Trump’s term. The alliance allowed the two carriers to share flight schedules and revenue. It played a key role in American Airlines’ efforts to strengthen its position in the competitive New York market, where it had been losing money.
Alongside ending talks, American Airlines has filed a lawsuit in a Texas court to recover funds it claims are still owed by JetBlue as part of the NEA’s shutdown. The company is asking for over $1 million in damages, not including legal fees and other costs.
JetBlue responded by saying it has been working in good faith with American Airlines to wind down the alliance since the court ruling.
“We plan to review American’s complaint. As this is an ongoing legal matter, we cannot comment further at this time,” a JetBlue spokesperson said in an email.
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