American Airlines has officially ended discussions with JetBlue Airways regarding a potential renewal of their previous partnership and has filed a lawsuit to recover funds it claims are owed by JetBlue following the termination of their prior alliance.
The announcement, made Monday, signals a definitive close to the once-prominent collaboration between the two carriers under the Northeast Alliance (NEA), which was launched in 2020 to jointly operate flights in the New York and Boston markets. That partnership was dissolved in 2023 after the US Department of Justice successfully challenged the arrangement on antitrust grounds.
American Airlines, based in Fort Worth, Texas, said it had made a “very attractive proposition” to JetBlue in the hopes of reviving a modified alliance. However, according to American’s vice chair and chief strategy officer Steve Johnson, the two companies could not reach a workable agreement.
“JetBlue was focused on different business priorities,” Johnson said in a statement. “We were unable to agree on a construct that preserved the benefits of the partnership we envisioned, made sense operationally or financially, or aligned with our loyalty and co-branded card strategy.”
As a result, American has filed a lawsuit in the Business Court of Texas, seeking to recover funds it says are owed from the unwinding of the original NEA arrangement. Johnson noted that American had postponed addressing the financial dispute while discussions were ongoing but has now opted to pursue legal action following the end of those negotiations.
JetBlue, headquartered in New York, confirmed Monday that it had been working with American to wind down the NEA but declined to comment on the lawsuit itself, citing ongoing litigation. A JetBlue spokesperson stated the company is in talks with multiple carriers regarding new partnership opportunities and anticipates announcing a new alliance in the second quarter.
The collapse of talks between American and JetBlue may create opportunities for other airlines to explore strategic partnerships with JetBlue, which has been undergoing internal restructuring. The airline has recently scaled back service in several cities and is refocusing its network around the East Coast.
The NEA’s dissolution was a significant loss for both airlines, particularly as they sought to better compete in congested markets dominated by Delta and United. The legal battle could also reflect broader challenges facing both carriers. American Airlines recently reported a $473 million loss in the first quarter and withdrew its full-year guidance amid weakening domestic travel demand. JetBlue, meanwhile, has seen its stock fall sharply in 2025 as it faces heightened competition and operational pressures.
Axios, Bloomberg, and the Wall Street Journal contributed to this report.
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