JetBlue says it will end American Airlines partnership after losing DOJ antitrust case, will focus on Spirit

JetBlue Airways said Wednesday that it volition extremity its concern successful the northeastern U.S. with American Airlines aft a national justice ordered the carriers to extremity the agreement, arsenic the New York hose focuses connected its acquisition of Spirit Airlines instead.

American said successful June that it would situation the ruling against the JetBlue concern — called the Northeast Alliance, oregon NEA — but New York-based JetBlue said Wednesday it would not entreaty the decision. That ruling was the effect of a 2021 lawsuit brought by the Justice Department, six states and the District of Columbia to artifact the alliance, calling it anticompetitive.

"Despite our heavy condemnation successful the procompetitive benefits of the NEA, aft overmuch consideration, JetBlue has made the hard determination not to entreaty the court's determination that the NEA cannot proceed arsenic presently crafted," JetBlue said successful a statement.

JetBlue said it has started terminating the agreement, "a upwind down process that volition instrumentality spot implicit the coming months." JetBlue said it volition "now crook adjacent much absorption to our projected operation with Spirit."

JetBlue's woody to bargain Spirit came unneurotic aft JetBlue and American launched the Northeast partnership. The NEA, approved during the past days of the Trump administration, allows the 2 carriers to stock passengers and gross and to coordinate schedules. American and JetBlue said they needed the woody to amended vie against large carriers specified arsenic United and Delta successful congested airports successful the New York country and successful Boston.

But a national justice ruled successful May that that concern was anticompetitive, ordering the 2 airlines to undo the alliance.

American Airlines said Wednesday that it volition inactive entreaty the ruling.

"JetBlue has been a large partner, and we volition proceed to enactment with them to guarantee our communal customers tin question seamlessly without disruption to their question plans," American said successful a connection connected its website.

A spokesperson for the hose did not instantly accidental however American could salvage the woody if it wins an appeal, if JetBlue plans to statesman unwinding it.

"We, of course, respect JetBlue's determination to absorption connected its different antitrust and regulatory challenges." 

JetBlue said successful a securities filing that it informed American connected June 29 that it was terminating the concern due to the fact that of the judge's ruling. JetBlue said the termination volition instrumentality effect July 29.

JetBlue won the woody to acquire Spirit successful July 2022 aft a bidding warfare with low-cost rival Frontier Airlines. JetBlue has argued it needs Spirit successful bid to turn and amended vie against larger airlines that predominate home aerial travel. The combined bearer would go the country's fifth-largest.

The acquisition of Spirit would springiness JetBlue entree to much craft astatine a clip erstwhile manufacturers are struggling to support up with demand. It would besides summation entree to hundreds of pilots, which are besides successful abbreviated supply.

From the commencement that woody has faced a high hurdle to triumph support from the Biden administration, which has vowed to situation deals it finds harm competition.

The Justice Department sued to artifact the deal successful March. "JetBlue's program would destruct the unsocial contention that Spirit provides — and astir fractional of each ultra-low-cost hose seats successful the manufacture — and permission tens of millions of travelers to look higher fares and less options," it said successful the suit.

Spirit shares were up much than 2% successful after-hours trading, portion American and JetBlue were each down little than 1%.