The U.S. Court of Appeals for the First Circuit has upheld a decision from the U.S. District Court for the District of Massachusetts, siding with the Justice Department and Attorneys General from six states and the District of Columbia in an antitrust case against American Airlines and JetBlue. The lawsuit sought to dismantle the Northeast Alliance between the two airlines.
Attorney General Merrick B. Garland stated, "Today’s decision is a hard-won victory for the millions of Americans who count on competition between airlines to fly affordably, whether to visit family, to go on vacation, or to travel for business." He emphasized that all industries must adhere to antitrust laws designed to protect consumers.
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division added, "Today’s decision is yet another litigation victory for the Antitrust Division and American travelers who depend on competition for lower airfare and higher quality." He expressed gratitude towards those involved in investigating and litigating the case, including state law enforcement partners.
The appeals court's ruling follows a May 2023 judgment by the district court which found that agreements within the Northeast Alliance led American Airlines and JetBlue to consolidate operations in Boston and New York City, ceasing competition in these major markets. This action was deemed a violation of Section 1 of the Sherman Act as it reduced competition in domestic air passenger services.