The US Supreme Court has rejected a request by American Airlines to overturn a lower court’s ruling on its Northeast Alliance (NEA) partnership with JetBlue.
The now scrapped NEA was a partnership between JetBlue and American, sought to enhance competition against carriers such as Delta and United, at airports in the Northeast region of the US by pooling schedules and revenues.
The alliance, which was first announced in July 2020 and approved by the US Transportation Department just days before the end of President Donald Trump's first administration in January 2021, formally ended in July 2023. This was due to attempts by the US Department of Justice (DOJ) to shut down the NEA, with the DOJ arguing the alliance was anti-competitive.
In November 2024, a US appeals court upheld the ruling which rejected American’s attempt to reinstate the alliance.
American stated that the airline alliance would increase market wide competition among all airlines in the Northeast region of the US without any price increases, solely because it reduced competition between the two joint venture partners.
In April, the airline ended partnership talks with JetBlue, filing a lawsuit seeking damages after the failed alliance.
American had argued in this new petition to the Supreme Court that lower court’s ruling could have set a damaging precedent for industry collaborations, restricting partnerships that increase market-wide competition without raising consumer prices.
“We’re disappointed but appreciate the Supreme Court’s consideration," a spokesperson for American told Airline Economics. “The Northeast Alliance was designed to increase competition and expand customer options in the Northeast, which it clearly did during the time it was allowed to operate. We will continue to build American’s network organically and through growth and investment in these partnerships.”
JetBlue is instead now entering a partnership with United Airlines, allowing passengers to book flights on both carriers' websites, while interchangeably earning and using points in their frequent flyer programs.