Talks of revised American, JetBlue partnership break down. Now, 1 airline is suing another

Talks of a revived Northeast Alliance between American Airlines and JetBlue appear to have fallen apart, and now, American is suing its former airline partner.

After months of speculation about a potential reunion between the two airlines, American executives confirmed Monday night the Fort Worth-based carrier had, in fact, been exploring a renewed partnership with JetBlue, which it teamed up with in the now-defunct Northeast-based partnership between 2020 and 2023.

But those discussions, American said, did not lead to a new deal.

"Although we proposed a very attractive proposition to JetBlue and its customers and team, it became clear over time that JetBlue was focused on different business priorities," wrote Steve Johnson, American's vice chair and chief strategy officer.

No encore for AAdvantage-TrueBlue tie-up

The Northeast Alliance between American and JetBlue saw the two carriers join forces at four major Northeast airports in the New York City and Boston metropolitan areas, coordinating on schedules and sharing revenue.

The airlines saw the arrangement as a way to better compete with Delta Air Lines and United Airlines, two carriers that hold strong positions in the New York region and throughout the Northeast.

Frequent flyers of the two airlines likely remember the reciprocal loyalty benefits most. Through the partnership, American Airlines AAdvantage and JetBlue TrueBlue members could earn and redeem points or miles on the opposite carrier and take advantage of elite status perks regardless of which airline they were flying on.

A federal judge in 2023 struck down the deep partnership, though, after the Biden administration challenged the deal on antitrust grounds.

But last fall, American and JetBlue seemed to signal that they might be open to some sort of new arrangement under a framework the judge said would have been legally acceptable.

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It now appears that won't happen ... and the end of renewed alliance talks between the two airlines isn't happening quietly, either.

American sues JetBlue

American on Monday filed a federal lawsuit in Texas against JetBlue, seeking more than $1 million from the New York-based carrier that's owed, American said, following the unwinding of the former alliance.

According to Johnson, American had paused efforts to collect the money while the two airlines discussed reviving the partnership.

JetBlue: New partnership coming soon

In a statement to TPG, JetBlue declined to comment on the pending litigation, but the carrier reiterated its interest in partnering with another airline — and seemed to tease a new agreement coming between now and the end of June.

Speaking on the company's first-quarter earnings call Tuesday, JetBlue CEO Joanna Geraghty described the litigation as "not an unexpected turn," but declined to say more.

"We've said we are talking to multiple airlines about a new partnership," a spokesperson for JetBlue told TPG. "We have been making good progress and expect to announce a partnership agreement in the second quarter."

JetBlue President Marty St. George on Tuesday told analysts the airline plans to partner with another U.S.-based airline with a larger network.

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