Judge Refuses To Dismiss DOJ’s Antitrust Suit Against JetBlue and American Airlines

The government’s lawsuit attempting to end the airlines’ Northeast Alliance will go to court in September.

Friday, June 10, 2022 at 04:46 PM ET

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American Airlines and JetBlue airplanes on the tarmac at the Cyril E. King Airport located at Charlotte Amalie on the island of St. Thomas in the U.S. Virgin Islands. [File Photo: Shutterstock]

Key Takeaways:

A U.S. District Judge rejected JetBlue and American Airlines' attempt to dismiss an antitrust lawsuit brought by the Department of Justice (DOJ) over their Northeast Alliance.
The DOJ will proceed to trial on September 26, seeking to unwind the alliance, which it labels an "anticompetitive pact" and "de facto merger" impacting key Northeast airports.
Concurrently, JetBlue is engaged in a contested bid to acquire Spirit Airlines, an offer Spirit has resisted due to concerns about potential antitrust scrutiny similar to the ongoing DOJ case.

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U.S. District Judge Leo Sorokin rejected a joint bid by JetBlue (NASDAQ: JBLU) and American Airlines (NASDAQ: AAL) earlier this week to dismiss an antitrust lawsuit brought against them by the Department of Justice and attorney generals of six states—Arizona, California, the District of Columbia, Florida, Massachusetts, Pennsylvania, and Virginia.

This means the DOJ will have its day in court against the two airlines come September 26, when they seek to have the companies unwind their Northeast Alliance, which the DOJ has said is anticompetitive.