American Airlines has filed a lawsuit against JetBlue, seeking to recover funds it claims are owed following the termination of the carriers’ Northeast Alliance (NEA) partnership last year.
The lawsuit, filed in the Business Court of Texas in Tarrant County on Monday, alleges that JetBlue has failed to pay American for its contributions to the NEA between April 1, 2022, and July 18, 2023. American is seeking over $1 million in damages, plus interest and attorneys’ fees.
At the core of the dispute is the Mutual Growth Incentive Agreement (MGIA), a revenue-sharing arrangement that was part of the broader NEA partnership. Under the MGIA, the airlines agreed to share incremental revenue generated by the alliance based on each carrier’s capacity contribution at key Northeast airports.
Unpaid Fees
American claims it provided JetBlue with monthly reports and a final invoice detailing the amounts due under the MGIA’s reconciliation process. Despite these efforts, American alleges that JetBlue has refused to pay the outstanding balance.
“And despite American’s good faith efforts to resolve the parties’ dispute, JetBlue continues to ignore its contractual obligations,” the lawsuit states.
The NEA was terminated in July 2023 following a ruling by a federal district court that enjoined the partnership on antitrust grounds. However, American notes that the court’s final judgment explicitly allowed the airlines to “complete the audit, reconciliation, and payment processes” for flights operated through July 18, 2023.
In its lawsuit, American argues that JetBlue’s refusal to pay violates the terms of their agreement. The airline is seeking to recover the amount due under the MGIA, as well as related damages resulting from JetBlue’s alleged non-payment.
‘Different Business Priorities’
This legal action comes amid reports that the two carriers had recently explored renewing their partnership. In an internal memo to employees, American’s vice chair and chief strategy officer, Steve Johnson, acknowledged these discussions.
He elaborates on the discussions with JetBlue, noting, “Although we proposed a very attractive proposition to JetBlue and its customers and team, it became clear over time that JetBlue was focused on different business priorities.”
— JonNYC (@xJonNYC) April 29, 2025
Johnson added that despite their efforts to renew the partnership, the two airlines could not agree on terms that were operationally or financially feasible for American.
“We filed a lawsuit against JetBlue today to recover money owed to American following the unwinding of the Northeast Alliance. We understandably tabled this claim while we were in discussions with JetBlue, but now that those conversations have concluded, we need to address the accounting and reconciliation following the termination of the NEA,” he concluded.
