American Airlines Sought JetBlue Alliance For Economic Survival During COVID-19: Report

American Airlines Group Inc AAL pursued an alliance with JetBlue Airways Corp JBLU in order to stay afloat during the COVID-19 pandemic-induced economic uncertainty.
The airline needed the collaboration to stay competitive in the heavily trafficked U.S. Northeast.
American Airlines CEO Robert Isom testified in a Boston federal court on Monday, saying, "Our business was hemorrhaging cash" in the spring of 2020, Bloomberg reported.
The company was losing more than $100 million a day as COVID-19 shut down air travel and had instructed the executives to explore alliance options with JetBlue and Alaska Air Group Inc ALK.
The Justice Department sued American and JetBlue in 2021, terming the alliance as a "merger" that led to an increase in fares with reduced choice for passengers.
The partnership, called the Northeast Alliance, allowed the two airlines to share bookings, routes, and passengers, especially in Boston and New York.
The move sparked a frenzy as rival carriers, including Southwest Airlines Co LUV and Spirit Airlines Inc SAVE, accused American Airlines gained outsized control of New York flights through the alliance.
Price Action: AAL shares are trading higher by 3.02% at $12.28 in premarket on the last check Tuesday.