American Airlines is taking legal action against JetBlue, seeking over $1 million in compensation following the collapse of their Northeast Alliance (NEA). The alliance, established in 2020 to challenge the dominance of Delta and United in the Boston and New York markets, was found to be anticompetitive by a court due to US antitrust laws. Despite the alliance dissolving two years ago, American Airlines claims that JetBlue still owes them millions in unpaid fees related to flights operated during the partnership.

In a recent lawsuit filed in Texas, American Airlines asserts that JetBlue has failed to fulfill its financial obligations stemming from the terminated NEA. The core of the dispute revolves around a revenue-sharing arrangement set up before the alliance commenced, outlining how revenues from joint operations would be distributed. American Airlines alleges that JetBlue has not made the required payments under this agreement, with discrepancies in the amount owed according to each airline's calculations.

The fallout from the failed alliance continues as American Airlines pursues legal recourse to recover the outstanding funds. The NEA, despite receiving initial regulatory approval, faced challenges from US antitrust authorities resulting in its dissolution. Court rulings have emphasized the negative impact of the alliance on competition and consumer choice in the aviation industry.

This ongoing legal battle adds another layer to the complexities surrounding the NEA debacle. American Airlines and JetBlue have already faced consequences, including having to pay legal fees to multiple states due to challenges against their alliance. As the airlines navigate through court proceedings and financial disputes, the aftermath of the NEA serves as a cautionary tale about the complexities of forming and dismantling alliances in the aviation sector.