U.S. Court Cuts JetBlue and American Airlines Codeshare: Impact on Travelers Explained

Alliance Announcement

The alliance was first announced in 2020.

JetBlue and American Airlines were ordered by a U.S. judge on Friday to end their alliance — a partnership that granted customers of each airline a larger route selection and reciprocal reward benefits.

Judge’s Decision

“It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arm’s-length rivals regularly challenging each other in the marketplace of competition,” Judge Leo T. Sorokin said in his decision to block the partnership, The New York Times reported.

Impact on Customers

First announced in July of 2020, and then expanded a year later, the codeshare allowed travelers to choose flights on either JetBlue or American, maximizing customer convenience and providing access to diverse destination routes. Customers of either airline enjoyed access to the other’s reward perks as well.

Known as the “Northeast Alliance,” the partnership specifically covered flights out of New York City-area airports — JFK, LaGuardia, and Newark — and Boston’s Logan Airport.

The Department of Justice first sued American Airlines in 2021, claiming the carrier would cost passengers millions of dollars, according to Reuters. Sorokin also noted that JetBlue’s claim of being a “low-cost” airline is “diminished” under the alliance.

Government Response

“We are disappointed in the decision,” a spokesperson for JetBlue told iBestTravel. “We made it clear at trial that the Northeast Alliance has been a huge win for customers. Through the NEA, JetBlue has been able to significantly grow in constrained northeast airports, bringing the airline’s low fares and great service to more routes than would have been possible otherwise.”

The two airlines have 30 days to end the alliance, Reuters reported.

This decision marks the latest initiative from the Biden administration to advocate for airline passengers. Recently, the Department of Transportation has pushed for airlines to compensate passengers for certain cancellations or delays, and to ensure that families can sit together during flights.

American Airlines did not immediately respond to iBestTravel’s request for comment.

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