WASHINGTON—The Justice Department on Tuesday filed an antitrust lawsuit challenging American Airlines Group Inc.’s partnership with JetBlue Airways Corp. , alleging the recently forged alliance will suppress competition and lead to higher fares.
The department, joined by six states and the District of Columbia, filed the lawsuit in a Massachusetts federal court. They alleged the American-JetBlue agreement will eliminate head-to-head competition in key traffic hubs in the Northeast and hurt travelers across the country by diminishing JetBlue’s incentives to compete with American. That could mean higher prices, fewer options and poorer customer service, the suit alleged.
