JetBlue to Face US$100M Lawsuit from American Airlines

‍DALLAS — A Texas state judge has ruled that JetBlue (B6) must face a US$100 million lawsuit brought by American Airlines (AA) after the New York-based carrier failed to convince the judge to dismiss the case.

The lawsuit concerns a dispute between the two carriers over the strategic partnership launched in 2020. The “Northeast Alliance” (NEA) allowed the two airlines to share passengers and related revenue.

The alliance was dissolved in 2023 after the U.S. Department of Justice, along with six states and the District of Columbia, initiated an antitrust suit the previous year, in which a federal judge in Boston ruled against the airlines.

American first sued sued B6 in May 2025, claiming more than US$1 million in compensation following the dissolution of the NEA and the cancellation of partnership talks. In this recent lawsuit, AA alleges that B6 failed to make contractual payments, which were uncovered by an audit and reconciliation process following the alliance’s dissolution bringing a hundredfold increase to the initial comp amount.

American, in a court filing in its lawsuit, stated that “rather than face American’s claim on its merits, JetBlue has done nothing but try to avoid litigating this case in Texas.”

JetBlue, on the other hand, argued that the dispute focused on operations and revenues at New York’s three major airports (JFK, LaGuardia (LGA), and Newark (EWR)) and Boston (BOS) and that the contracts are governed by New York law.

The Texas judge says that the case was properly filed in Texas because JetBlue “purposefully sought benefits" from the state of Texas, operated thousands of Texas flights under the alliance, employed personnel in the state, and leased airport property.

JetBlue has since entered a new partnership with United Airlines (UA), launching “Blue Sky,” allowing combined loyalty, booking, and vacation deals, as well as access to seven daily round-trip slots at JFK’s Terminal 6 for United beginning next year.