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American Airlines and JetBlue Airways must abandon their partnership in the northeast United States, a federal judge in Boston ruled Friday, saying that the government proved the deal reduces competition in the airline industry.
The ruling is a blow for the airlines, which have said that their deal helps consumers by creating a stronger competitor in the Northeast to Delta Air Lines and United Airlines.
But U.S. District Judge Leo Sorokin wrote that through their alliance, American and JetBlue carved up Northeast markets between them, “replacing full-throated competition with broad cooperation.”
Sorokin said the airlines offered only minimal evidence that the partnership helped consumers.
JetBlue said it was considering whether to appeal.
“We are disappointed in the decision,” said an airline spokeswoman, Emily Martin. “We made it clear at trial that the Northeast Alliance has been a huge win for customers.”
Neither American nor the Justice Department responded immediately when asked for comment.
The ruling is a major victory for the Biden administration, which has used aggressive enforcement of antitrust laws to fight against mergers and other arrangements between large corporations.
