By Micah Jonah, February 21, 2026
A business court in the United States has ruled that JetBlue Airways must defend itself against a lawsuit filed by American Airlines seeking more than 100 million dollars in damages over their collapsed commercial partnership.
The decision was delivered by Judge Jerry Bullard of the Texas Business Court in Fort Worth, who rejected JetBlue’s request to dismiss the case. The judge held that the matter was properly filed in Texas and should proceed before the court.
American Airlines had sued JetBlue following the breakdown of their 2020 Northeast Alliance, an arrangement that allowed both carriers to coordinate flights and share revenue on routes in and out of New York and Boston. The partnership later collapsed after legal challenges in a separate antitrust case.
In its claim, American Airlines alleged that JetBlue failed to meet certain financial obligations – arising from contractual payments after an audit and reconciliation process conducted when the alliance ended.
JetBlue had argued that the dispute was centred on operations at airports in the northeastern United States and should not fall under the jurisdiction of Texas courts. The airline also maintained that the governing agreements were subject to New York law.
However, the court ruled that JetBlue had sufficient business ties to Texas, including operating thousands of flights connected to the alliance and maintaining personnel and leased airport property in the state.
The ruling marks an early setback for JetBlue, although the court did not make any determination on the substance of American Airlines’ claims. Legal analysts say the case could have significant financial implications for both carriers as proceedings move forward.
