American Airlines has severed its ongoing talks with JetBlue Airways, opting to take legal action after the collapse of their once-promising Northeast Alliance (NEA). The Texas-based airline announced that it was pursuing a lawsuit for damages, claiming the failed partnership has left them with significant financial losses.
This legal move comes after a turbulent chapter for the two airlines, which had been in discussions to form a new partnership. The aim was to strengthen their networks and loyalty programs following the dissolution of the NEA—a decision that stemmed from a ruling in May 2023, which found the deal violated federal antitrust laws. The verdict was later upheld by an appeals court.
According to American Airlines’ Vice Chair Steve Johnson, the talks ultimately reached an impasse. In a letter to employees, Johnson explained that the companies were unable to agree on terms that made sense both operationally and financially, despite their previous efforts to build a mutually beneficial partnership.
Meanwhile, JetBlue has maintained its stance that it remains open to new partnership opportunities, even as it navigates the fallout from the NEA’s termination. The airline had previously signaled its willingness to invest more capital to strike a deal with other carriers.
The ill-fated NEA was unveiled in July 2020, during the final months of Donald Trump’s presidency. The alliance was designed to allow the two carriers to coordinate flights and share revenue, with American particularly focused on improving its foothold in the competitive New York market. However, the partnership’s legal troubles ultimately led to its unraveling.
In addition to ending talks, American Airlines filed a lawsuit in Texas, seeking over $1 million in damages from JetBlue, excluding attorney fees and related costs. The airline is claiming that JetBlue owes them money after the NEA’s dissolution.
JetBlue has responded by acknowledging the legal dispute but refrained from commenting further, noting that the matter is still under review by the courts.
This lawsuit marks the latest chapter in the saga of a partnership that once held great promise but ultimately faltered amid legal challenges.
