JetBlue says it will end alliance with American to save Spirit merger deal

The New York-based carrier said while it "strongly" disagrees, it would not appeal the court's ruling.

JetBlue said terminating its alliance with American renders "entirely moot" the U.S. Justice Department's objections that led it towith Spirit, which would be the biggest in the U.S. airline industry since American and US Airways merged in 2013. American has yet to spell out plans for the capacity it gave to JetBlue. The carrier could now be forced to rebuild its capacity or cut international flights out of the region.

The DOJ sued in 2021 to undo the Northeast Alliance, which was announced the previous year. It called it a "de facto merger" of American and JetBlue operations in Boston and New York that removed incentives to compete and would end up costing consumers an additional $700 million a year to fly out of the region's busy airports.

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