JetBlue Won’t Appeal Court Ruling Ending Northeast Alliance With American Airlines

After several weeks of weighing options, JetBlue has decided not to appeal a June court decree that the Northeast Alliance (NEA) with American Airlines conflicts with antitrust law.

JetBlue issued a statement announcing its decision today, a month after its CEO Robin Hayes told Bloomberg that the airline hoped to try and find a way of continuing the NEA flights coordinated by the two airlines.

“We strongly disagree with the court’s ruling against the NEA and stand behind the procompetitive impact of the alliance,” JetBlue said in a statement. “Despite our deep conviction in the procompetitive benefits of the NEA, after much consideration, JetBlue has made the difficult decision not to appeal the court’s determination that the NEA cannot continue as currently crafted, and has instead initiated the termination of the NEA.”

JetBlue has begun the wind down process for the alliance, which must be dissolved as a result of the court ruling. The process will continue to take place over the coming months, said JetBlue.

American and JetBlue established the NEA in 2020 in order to coordinate flights and pool revenue. The partnership allowed the two airlines to more effectively compete against such competitors as United Airlines and Delta Air Lines in Boston to New York City.

Hayes, told Bloomberg in early June that the alliance offered tremendous benefit for travelers as well and that the airline was reviewing its options for continuing the fruitful deal in response to the court’s ruling on the matter.

“The NEA has been fantastically successful for consumers,” Hayes said. “There’s never been more JetBlue flights out of New York and Boston. Fares in New York have risen less than anywhere else in the country. All of those point to the NEA being incredibly successful.”

In its statement on Wednesday, JetBlue said it entered into the NEA “as a creative solution to bring more of the JetBlue Effect to customers in New York and Boston, where our growth has been challenged by constraints outside of our control.”

As a result of the alliance, JetBlue said that in addition to reducing airfares, it was able to increase capacity, add new routes and and new destinations, offering customers a “real alternative to Delta and United.”

The US Department of Justice filed its lawsuit against the alliance in 2021. The DOJ called the partnership a “de facto merger,” adding that the alliance had the effect of reducing competition, which could cost consumers an additional $700 million a year.

Fallout for Customers
Travelers who already have bookings within the NEA for the coming months will not be impacted by today’s announcement from JetBlue.

“For customers, it’s important to note that nothing will change immediately and they can feel confident in new and existing bookings for the coming months,” JetBlue said in its statement. “In addition, customers can continue to earn/redeem points and receive reciprocal loyalty benefits. We will continue to work through the legal process to achieve a wind down plan that protects consumers, and look forward to presenting our view to the court in the coming weeks.”

With its decision to dissolve the alliance, JetBlue says it will now focus even more energy on its proposed merger with Spirit. That deal is also aimed at what JetBlue describes as improving the competitive landscape in the United States.

“As it relates to the Spirit combination, terminating the NEA renders the U.S. Department of Justice’s (DOJ) concerns about our partnership with a legacy carrier entirely moot,” said JetBlue in today’s statement. “With that, the DOJ should reconsider and support our plan to bring a national low-fare competitor to the Big Four; the flying public deserves better than the status quo.”