NEA unwind creates downside risk for JetBlue, says Citi

Citi expected JetBlue (JBLU) to follow American Airlines (AAL) in pursing an appeal of a recent court ruling that had ordered the two partners to unwind the Northeast Alliance. The analyst says JetBlue’s decision to dismantle the Northeast Alliance “would seem to create downside risk for the carrier,” in light of the revenue growth momentum it had been seeing from the agreement. Separately, JetBlue also struck a more constructive tone on its efforts to acquire Spirit Airlines (SAVE), the analyst tells investors in a research note. The firm believes the unwind of the alliance could also potentially have negative revenue implications for American.