A federal appeals court has upheld a ruling blocking the controversial alliance between American Airlines and JetBlue Airways, further unraveling the airlines’ plans to join forces in the U.S. Northeast. The 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice, affirming that the alliance violated antitrust laws.
The court found that the partnership—announced in 2020 and aimed at boosting cooperation between the two carriers—effectively eliminated competition by allowing them to share revenue and coordinate flight schedules in key markets like New York and Boston. This move, the court argued, gave the two airlines an unfair advantage, reducing the incentives to keep prices competitive.
In its ruling, the panel rejected American Airlines’ argument that the alliance was beneficial to consumers, emphasizing that it led to a highly concentrated market with little price competition. U.S. Attorney General Merrick Garland praised the decision, calling it a win for consumers who rely on fair competition in air travel.
While the partnership has since been dissolved, American Airlines has expressed its disagreement with the decision and is considering further legal options, including appealing to the U.S. Supreme Court. Meanwhile, JetBlue continues to pursue other strategies, including its attempt to acquire Spirit Airlines, which also faced legal opposition from the Justice Department.
The decision marks a significant moment in the ongoing scrutiny of airline partnerships, as the Justice Department remains committed to preventing mergers that it believes could harm consumers.
