American Airlines and JetBlue are defending themselves in a class action lawsuit over allegedly inflated fares during their Northeast Alliance partnership. The government won an antitrust case and forced the airlines to dismantle the partnership more than three years ago. Now passengers claim they paid higher ticket prices and want refunds plus treble damages.
The lawsuit, In re American Airlines/JetBlue Antitrust Litigation in the Eastern District of New York, covers direct purchasers of American and JetBlue flights to or from Boston between April 1, 2021 and July 28, 2023. Passengers allege the alliance allowed the airlines to coordinate schedules, decide which carrier would fly particular routes, and share revenue, which reduced their incentive to compete on price.
Both airlines opposed class certification earlier this month and moved to exclude the passengers' expert witness. The case requires plaintiffs to prove their tickets cost more specifically because of the partnership, not from other market factors. Fares rose industry-wide as airlines faced pilot shortages and aircraft retirements following the pandemic, plus inflation pressures.
American exited the Boston to LaGuardia shuttle market, leaving JetBlue and Delta as competitors. The route carried heavy business travel demand, which was slower to recover in the Northeast than other markets.