- A federal judge last week ruled that American Airlines Group AAL and JetBlue Airways Corp JBLU must cease their alliance, ordering the businesses to break up within 30 days.
- The judge stated that partnership “substantially diminishes competition in the domestic market for air travel.”
- AAL’s CFO Devon May states that the court ruling on the Northeast Alliance with JetBlue will not impact the carrier’s earnings, reported Reuters.
- “It’s a big deal for our New York strategy. It is not something that’s meaningful to our earnings,” May stated at the Wolfe Transportation and Industrials conference.
- The Northeast Alliance was created in July 2020 to coordinate flights and pool revenue while competing against the New York-area and Boston-area market leaders Delta Air Lines DAL and United Airlines UAL.
- Price Action: AAL shares closed higher by 4.20% at $14.38, and JBLU higher by 1.04% at $6.83 on Thursday.
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