JetBlue to End Alliance with American Airlines — Here’s Why

JetBlue will dissolve its partnership with American Airlines and won’t appeal a judge’s ruling ordering the carriers to do so in an effort to protect its planned purchase of Spirit Airlines.

The carrier said it "strongly" disagrees with a judge’s ruling ordering the dissolution of the alliance, but would not appeal, according to a statement from airline. The decision comes after a U.S. judge in May ordered JetBlue and American to end their partnership, which allowed customers to access each airline’s route network and earn reciprocal reward benefits.

At the time of his ruling, the judge said the alliance gave each carrier “a substantial interest in the success of their joint and individual efforts, instead of vigorous, arm’s-length rivals regularly challenging each other in the marketplace of competition.”

The decision not to appeal the ruling comes as JetBlue works to complete the sale of Spirit Airlines, which it agreed to buy last year for $3.8 billion. The merger would make the airline the fifth largest in the country.

“Despite our deep conviction in the procompetitive benefits of the [alliance], after much consideration, JetBlue has made the difficult decision not to appeal… and has instead initiated the termination of the [alliance], beginning a wind down process that will take place over the coming months,” JetBlue wrote in a statement. “We will now turn even more focus to our proposed combination with Spirit, which is the best and most effective opportunity to truly transform the competitive landscape in the U.S. and bring the JetBlue Effect to more routes and markets across the country.”

For its part, American Airlines still plans to appeal.

“We, of course, respect JetBlue’s decision to focus on its other antitrust and regulatory challenges. At the same time, JetBlue's decision and reasoning confirm our belief that the [alliance] has been highly pro-competitive and that an erroneous judicial decision disregarding the [alliance’s] consumer benefits has led to an anticompetitive outcome,” American wrote in a statement. “American will therefore move forward with an appeal. JetBlue has been a great partner, and we will continue to work with them to ensure our mutual customers can travel seamlessly without disruption to their travel plans.”

The partnership, which was first announced in 2020 and expanded the next year, was known as the "Northeast Alliance" and specifically covered flights out of New York City-area airports and Boston: John F. Kennedy International Airport, LaGuardia Airport, Newark Liberty International Airport, and Boston Logan International Airport.

The partnership then came under fire in 2021 when the Department of Justice first sued American Airlines, claiming the alliance would cost passengers millions of dollars.