American Airlines and JetBlue have agreed to settle a legal dispute by paying nearly $2 million in legal fees to six US states. The lawsuit contested the airlines’ Northeast Alliance (NEA) partnership, which has since been blocked. The payment, to be split equally between American Airlines and JetBlue, will benefit the District of Columbia and states such as Massachusetts, Pennsylvania, Virginia, and Arizona. This decision stems from a court order issued by the United States District Court of Massachusetts on January 21, 2025.

According to the court order, the Plaintiff States will receive compensation for attorneys’ fees and costs under Section 16 of the Clayton Act. Both airlines and the Plaintiff States agreed to the terms of the order without the need for trial or legal adjudication. The funds from this settlement can be utilized for various purposes, including antitrust or consumer protection enforcement, in accordance with state laws.

Although American Airlines and JetBlue denied the antitrust allegations brought forth by the states, they chose to pay the legal fees without admitting any wrongdoing. The US Department of Justice, in collaboration with Attorneys General from the aforementioned states, filed the lawsuit in September 2021 to challenge the partnership established by the two airlines.

The Northeast Alliance, initiated in 2020, integrated the operations of American Airlines and JetBlue at four key airports, namely Boston Logan, John F. Kennedy, LaGuardia, and Newark Liberty. By combining resources and revenue streams at these airports, the alliance aimed to streamline operations and reduce competition between the airlines.