The U. S. Supreme Court has dealt a significant blow to American Airlines by announcing on Monday that it will not hear the carrier’s appeal over its Northeast Alliance with JetBlue Airways. This decision marks the end of a partnership that American had previously considered crucial for competing in the Northeast United States.

The Northeast Alliance (NEA), which was launched in 2021, allowed American and JetBlue to coordinate flights and schedules out of Boston and New York City area airports. It was intended to improve the two carriers’ competitiveness against United and Delta in two of the country’s busiest air markets. However, the U. S. Department of Justice (DOJ) saw the partnership as anti-competitive and a “de facto merger. ” A federal judge agreed with the DOJ in May 2023, and JetBlue soon withdrew from the agreement. American pursued its appeal alone, first to the 1st Circuit Court of Appeals and then to the Supreme Court, which on Monday rejected the case. Justice Brett Kavanaugh indicated that he would have considered the case.

By declining to hear the appeal, the Supreme Court has upheld the lower court’s ruling, meaning that the alliance must remain dismantled. In response to the decision, American Airlines expressed disappointment but stated that it would comply while continuing to focus on its own strengths in the region.

JetBlue has largely moved on from the NEA. After exiting the alliance, the airline shifted its focus to its proposed merger with Spirit Airlines, which also ended in defeat. JetBlue ultimately abandoned the merger earlier this year after a judge blocked it on antitrust grounds. Recently, the airline has announced a partnership with United Airlines.

The case was known as American Airlines Group v. United States, 24-938.

In conclusion, the Supreme Court’s decision to not take up the case marks the definitive end of the Northeast Alliance. This is a strategic setback for American Airlines, as the NEA was its solution to a shrinking presence in New York and increasing competition. Without the alliance, American must now rely on its own limited domestic strength in the Northeast, while JetBlue regroups after failed partnerships on two fronts.

Some may question whether the Supreme Court should have taken up the case and reinstated the Northeast Alliance. It is worth noting that the Trump Justice Department continued to defend the government’s victory in defeating the alliance, suggesting that it may not be as merger-friendly as some may think.