Justice Department wins lawsuit to end JetBlue and American Airlines alliance

American Airlines and JetBlue Airways have to break up their alliance on Northeast US flight routes, a US District Court judge ordered Friday.

US District Judge Leo Sorokin ruled in favor of the the Justice Department, giving the Biden administration a victory in its years-long lawsuit against the airlines' collaboration. The Justice Department filed the lawsuit in 2021, alleging the two companies raised prices and reduced choice for air passengers traveling to and from major cities in the Northeast, such as New York City and Boston.

The airlines have 30 days to end their partnership, Sorokin ruled - just as the busy summer travel season kicks off.

"It is abundantly clear to the Court that the defendants' primary motivation in establishing the NEA was to strengthen their own competitive positions against Delta (and, to a lesser extent, United) in Boston and New York," Sorokin wrote in the ruling Friday.

The judge's ruling Friday said that both airlines are a "formidable and influential player" in air travel - American Airlines Group is the largest airline in the world and JetBlue is the sixth largest airline in the United States, holding significant market power in the Northeast, in particular.

In its lawsuit, the Justice Department said the two companies committed to trading information on which routes to fly, when to fly them, who would fly them, and what size planes to use for each flight. The alliance was established in 2020.

The airlines claimed because of the alliance's codesharing features, corporate and frequent flyers had broader access to benefits and discounts. But Sorokin ruled these travelers make up a relatively small proportion of American's customers.