American, JetBlue Begin Steps To Cease The Northeast Alliance

American Airlines Group Inc AAL and JetBlue Airways Corp JBLU have initiated the process of dissolving the pro-competitive, pro-consumer Northeast Alliance.

They collaborated to stay competitive in the heavily trafficked U.S. Northeast during the COVID-19 pandemic-induced economic uncertainty.

The collaboration was called the Northeast Alliance and allowed the two airlines to share bookings, routes, and passengers.

Related: American Airlines Claims No Earnings Impact From Northeast Alliance Verdict: Report

American and JetBlue will no longer sell seats on each other's flights beginning next Friday.

″We are disappointed to be ending popular benefits like code sharing and reciprocal loyalty benefits," sated Dave Fintzen, vice president of the Northeast Alliance at JetBlue, reported CNBC.

JetBlue last week said it wouldn't appeal the ruling so it can focus instead on its $3.8 billion acquisition of Spirit Airlines.

Also Read: US Justice Department Sues To Block JetBlue's $3.8B Spirit Airlines Deal

On the other hand, American has stated that it will continue challenging the Northeast Alliance verdict.

The Justice Department sued American and JetBlue in 2021, calling the alliance a "merger" that resulted in higher costs and fewer options for passengers.

Lawyers argued that this American and JetBlue alliance would cost consumers $700 million.

Price Action: AAL shares are trading lower by 0.22% at $18.10 and JBLU trading highe by 0.12% at $8.06 premarket in Monday.