Court Upholds Ruling Against JetBlue and American’s Northeast Alliance

A U.S. appeals court has upheld a previous ruling that struck down the Northeast Alliance between American Airlines and JetBlue Airways. This week, the Boston-based 1st Circuit Court of Appeals affirmed the prior ruling by U.S. District Judge Leo Sorokin, stating that the airlines must dissolve the partnership because it reduced competition between the two carriers.

In his original opinion, Sorokin noted that the alliance effectively created a merger between American and JetBlue in the Northeast—one of the largest air travel markets in the U.S. He argued that this partnership harmed consumers, as it allowed the airlines to coordinate in ways that reduced incentives to compete on price.

American, which maintains that the alliance benefits consumers by expanding travel options, stated it will continue to appeal the ruling.

The decision comes just months before a new U.S. administration takes office, a shift that could significantly impact the regulatory landscape for mergers and partnerships. Notably, the Northeast Alliance was launched in 2020 with approval from the Department of Transportation under the previous—and now returning—administration.