American Airlines and JetBlue Airways are staying optimistic about their potential collaboration in the Northeastern US, despite facing a setback from a recent court ruling that deemed their planned alliance a violation of competition laws. The federal appeals court's decision on November 9, 2024 upheld an earlier ruling ordering the dissolution of their Northeast Alliance. However, with a new administration on the horizon, both airlines are hopeful for a more free-market approach from regulators.

Top executives Robert Isom from American Airlines and Marty St. George from JetBlue expressed their desire for a possible new partnership despite the legal hurdles. Isom highlighted the potential benefits for consumers, emphasizing that the partnership would inject much-needed competition into a market currently dominated by United Airlines and Delta Air Lines.

The previous Northeastern Alliance between American Airlines and JetBlue, which ran until 2021, allowed customers to earn miles and enjoy elite benefits when flying with the partner airline. Supporters of the deal argued that this partnership significantly enhanced competition in the New York area, where both airlines struggled to compete effectively against larger rivals.

However, the alliance faced opposition in 2021 and was subsequently dissolved, leaving both American Airlines and JetBlue seeking new ways to strengthen their positions in the competitive New York/Boston markets. They argue that individual growth would be challenging due to their size and slot limitations at major New York airports, such as JFK and LGA.

JetBlue President Marty St. George acknowledged the airline's need for strategic partnerships during the third quarter earnings call in October 2024, highlighting it as one of their key weaknesses. St. George expressed openness to partnering with American Airlines or other major carriers to bolster JetBlue's presence in the US Northeast.

As both American Airlines and JetBlue navigate regulatory challenges and seek to enhance their competitive standing, the possibility of a renewed partnership remains a topic of interest in the aviation industry.