(Reuters) – The U.S. Justice Department has stepped up an antitrust probe of American Airlines’ partnership with JetBlue Airways on concerns the deal can lead to inflated fares at key traffic hubs, the Wall Street Journal reported on Wednesday.
American and JetBlue launched the first phase of their partnership in February, even as the Justice Department and attorneys general in New York, Massachusetts and other jurisdictions were reviewing the proposed tie-up with codeshares on nearly 80 routes from New York and Boston.
The department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter.
Those airports are hubs for U.S. and international travel.
The investigation is continuing and no final conclusions have been reached, according to the report.
The Justice Department, American Airlines and JetBlue were not immediately available for comment.
American and JetBlue announced their partnership in July 2020.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D’Silva)
