American Airlines has asked the Supreme Court to reverse a ruling that blocked a revenue-sharing partnership the carrier had with JetBlue to coordinate flights.
In court papers made public on Monday the Texas-based airline asked the justices to reevaluate a November appeals court ruling maintaining that American Airlines and JetBlue’s Northeast Alliance, which began in 2021 and was terminated in 2023, violated federal antitrust laws because the arrangement reduced competition and raised fares for travelers.
American Airlines argues that coordinating with JetBlue enabled the carriers’ to optimize schedules to offer consumers more flights and more destinations, and that disbanding the alliance “threatens to wreak havoc on productive collaborations of all shapes and sizes,” according to court papers filed on Feb. 27. The company claimed in its legal filing that the partnership enabled American and JetBlue to better compete with Delta and United.
“This Court’s intervention is needed to resolve these conflicts and ensure that the interests of consumers—not a hostility to collaboration among competitors—governs,” the carrier argues.
The Justice Department under President Biden challenged the alliance in 2021 with a lawsuit that ultimately got a federal judge to block American Airlines and JetBlue’s alliance. But aviation analysts say there may be more appetite for such an arrangement now that President Trump is back in the White House.
To survive, JetBlue’s leadership has acknowledged that the Queens-based carrier needs an airline partnership of some sort to help it grow its offerings and better compete in the industry. JetBlue’s CEO Marty St. George emphasized last month that the airline is eager to revive its Northeast Alliance.
In a Monday note, JPMorgan analyst Jamie Baker said that he is bearish on JetBlue’s merger and acquisition potential for the near-term, but indicated that there could be potential down the road, particularly given “the perception of calmer regulatory waters.” A partnership similar to the Northeast Alliance, not an outright merger, is more likely for 2025, Baker predicted.
JetBlue notably controls important airport real estate, such as in New York and Boston, and therefore is an attractive partner for several airlines. Some of that real estate could be profitability integrated into other airlines, said Baker.
“While we don’t expect an outright acquisition bid for [JetBlue] any time soon,” wrote Baker, “we do believe that a relative safety net, so to speak, exists for [JetBlue] creditors if the current runaround plan fails.”
