Court Upholds Ruling Against American, JetBlue Alliance

A U.S. appeals court has upheld a ruling that declared the Northeast Alliance (NEA) between American Airlines and JetBlue Airways anticompetitive, blocking the partnership that allowed the airlines to coordinate flights and share revenue. The 1st U.S. Circuit Court of Appeals agreed with U.S. District Judge Leo Sorokin's May 2023 decision, which sided with the Department of Justice and several states that argued the NEA would reduce competition and lead to higher ticket prices. American Airlines, which argued the ruling unfairly restricts its ability to form similar partnerships, is now reviewing its options. JetBlue had previously terminated the NEA in light of the legal challenges, including its failed acquisition attempt of Spirit Airlines. The case underscores ongoing antitrust concerns in the airline industry, where a few major carriers dominate the market. The decision is seen as a significant victory for regulatory efforts aimed at maintaining competition in the airline sector.