American Airlines reports no impact on earnings from NEA decision
(Reuters) – American Airlines Group Inc’s chief financial officer Devon May said on Thursday the court ruling on the Northeast Alliance with JetBlue Airways Corp will have no impact on the carrier’s revenue.
American Airlines and JetBlue announced the creation of the Northeast Alliance (NEA) in July 2020 to coordinate flights and pool revenue while competing with Delta Air Lines and United Airlines, which dominate markets in the New York and Boston area.
Last week, a federal judge ordered the two carriers to end the alliance, saying the partnership “significantly lessens competition in the domestic airline market.”
“It’s a big problem for our strategy in New York. It’s not something that impacts our earnings,” May said Thursday at the Wolfe Transportation and Industry Conference, adding that he does not expect the NEA’s decision to impact the carrier’s macro capacity.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta)