American Airlines and JetBlue Lose Bid to Dismiss Antitrust Lawsuits Over Former Alliance

American Airlines and JetBlue Airways faced a legal setback on Friday as a U.S. court rejected their request to dismiss class-action lawsuits that claim their previous partnership led to higher fares for passengers in the northeastern United States. According to Reuters, U.S. District Judge Ann Donnelly in Brooklyn ruled that the plaintiffs had provided enough evidence to continue pursuing their allegations that the alliance between the two airlines violated antitrust laws.

The lawsuits allege that the 2020 partnership between American Airlines, the largest U.S. airline, and JetBlue, the sixth largest, hurt competition, causing passengers to pay inflated prices on flights in and out of New York and Boston. The agreement, which allowed for schedule coordination, revenue sharing, and shared loyalty benefits, drew criticism from both passengers and regulatory authorities. Per Reuters, the passengers’ case followed a 2022 lawsuit filed by the U.S. Department of Justice and several states, which also argued that the partnership harmed consumers by limiting competition.

Related: Federal Judge Dismisses Antitrust Lawyers’ Fee Demand Over JetBlue-Spirit Deal

Both American and JetBlue have denied the allegations of wrongdoing. However, the federal ruling comes on the heels of a 2022 decision by a Massachusetts judge overseeing the Justice Department’s case. That judge found that the airlines’ agreement was a “naked” collaboration to avoid competing in the northeastern U.S. market. As a result, the court ordered American Airlines to dissolve its partnership with JetBlue.

Despite the ruling, American Airlines is currently appealing the decision and, according to Reuters, has indicated that it may seek to form a new arrangement with JetBlue even if the appeal is unsuccessful. The two airlines have already started the process of winding down their partnership as the appeal is being reviewed.

The legal battle continues, with no immediate comments from the airlines or the law firms representing the plaintiffs. The case, officially titled In re: American Airlines / JetBlue Antitrust Litigation, is currently being handled in the U.S. District Court for the Eastern District of New York.

Source: Reuters