American Airlines launches lawsuit over JetBlue NEA collapse
April 30, 2025
American Airlines has filed a lawsuit against its former ally JetBlue Airways, seeking more than $1 million following the collapse of the Northeast Alliance (NEA).
In a letter sent to staff, American’s Vice Chair and Chief Strategy Officer Steve Johnson confirmed that with talks between the two carriers to develop a new cooperation agreement having failed, the company had “filed a lawsuit against JetBlue today to recover money owed to American following the unwinding of the Northeast Alliance”. The discussions followed the legal dismantling of the NEA last year, after a federal judge ruled that the partnership violated antitrust law.
“We were unable to agree on a construct that preserved the benefits of the partnership we envisioned, made sense operationally or financially,” Johnson wrote. He added that American had put forward a “very attractive proposition” but said JetBlue’s focus had shifted to different business priorities.
The NEA, announced in 2020 and approved by the U.S. Transportation Department in early 2021, allowed American and JetBlue to coordinate routes and share revenue, primarily to compete more effectively in the congested New York market. It was a major part of American’s strategy to turn around losses in the region.
American is now seeking financial relief through the courts in Texas, where it filed a claim against JetBlue to recoup money it says is owed from the unwinding of the NEA. The carrier is requesting more than $1 million, excluding legal fees and other costs.
JetBlue, in response, said it had been working “collaboratively” with American to wind down the alliance and confirmed it would review the legal complaint. “As this is pending litigation, we cannot comment further at this time,” a spokesperson said.
JetBlue was this week rumoured to be in talks with United Airlines to form a partnership in lieu of American’s NEA.
Despite the breakdown in talks, American says it remains committed to growing its presence in New York and Boston. According to Johnson, the airline has added over 20 new routes from JFK and LaGuardia since the NEA’s termination, using reclaimed slots.
He also highlighted American’s partnerships with British Airways, Iberia, Qatar Airways, Japan Airlines, and more recently, Alaska Airlines and Hawaiian Airlines, as part of a broader strategy to build global connectivity.
“We are proud to connect customers to more than 1,000 destinations around the globe, with an outstanding group of partners who share our belief that alliances are meant to provide customers with the experience they deserve and benefits they prefer,” he said. “We will continue to build American’s network organically and through growth and investment in these partnerships.”
