American Airlines Appealing Court Ruling Breaking Up Northeast Alliance

American Airlines announced it would appeal a court decision that called for the company to end its alliance with JetBlue Airways.

According to Reuters.com, American CEO Robert Isom said during the Bernstein Conference the carrier will appeal the decision made by United States District Judge Leo Sorokin on May 19.

Judge Sorokin ruled the Northeast Alliance between American and JetBlue “broke antitrust law” and ordered the airlines “to dissolve the arrangement within 30 days.”

While JetBlue declined to comment on the case, Isom said, “We’ve got a legal system that allows for appeal, and we’re going to do that.”

The U.S. Department of Justice initially filed a lawsuit against the Northeast Alliance in 2021 after it called the partnership a “de facto merger.” The government claimed the deal reduced competition and would cost “consumers an additional $700 million a year.”

“These two powerful carriers act as one entity in the northeast, allocating markets between them and replacing full-throated competition with broad cooperation,” Judge Sorokin said in his ruling.

American and JetBlue use the Northeast Alliance to coordinate flights and pool revenue. While the partnership benefits both companies, Isom said American’s flights out of New York only account for less than five percent of the carrier’s schedule.