American Airlines takes legal action against JetBlue after ending partnership talks

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American Airlines takes legal action against JetBlue after ending partnership talks

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Steve Johnson American Airlines Vice Chair and Chief Strategy Officer | American Airlines

By Sky Industry News

May 3, 2025

American Airlines filed a lawsuit against JetBlue on April 28, seeking to recover funds owed by the New York-based hybrid carrier following the dissolution of their Northeast Alliance (NEA). The airline concluded negotiations with JetBlue and aims to compete assertively in the New York and Boston markets.

American Airlines had hoped that discussions with JetBlue would enhance its business strategy by expanding its network and offering JetBlue customers access to more destinations and AAdvantage loyalty benefits. However, JetBlue is reportedly seeking a new partnership with another US carrier with a more extensive network.

In a letter, Steve Johnson, American Airlines Vice Chair and Chief Strategy Officer, explained the decision to sue JetBlue. "We filed a lawsuit against JetBlue today to recover money owed to American following the unwinding of the Northeast Alliance," he stated, emphasizing the need to address financial matters after negotiations ended.

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The NEA, approved in July 2020 and subsequently dissolved in May 2023 following an antitrust ruling, initially allowed American and JetBlue to collaborate on routes and loyalty programs. With the collapse of talks, American is looking to recover finances from JetBlue.

American Airlines plans to expand its presence in New York and Boston, with over 20 new routes from LaGuardia and JFK airports over the past year. JetBlue's major hubs, JFK and Boston Logan, see significant traffic, while American has scheduled numerous flights from these locations come May 2025. The airline intends to continue growing its AAdvantage loyalty program in the region.

After the failed NEA and an unsuccessful merger with Spirit Airlines, JetBlue is exploring an alliance with United Airlines. According to industry sources, discussions focus on improving customer connectivity and loyalty program interoperability without schedule and pricing coordination. An official announcement regarding this potential partnership is anticipated in the second quarter of 2025.