Sept. 21, 2021, 11:22 a.m. EDT

American Airlines, JetBlue stocks drop on report DOJ preparing to sue over alliance

The Justice Department is readying a lawsuit challenging American Airlines Group Inc.'s (NAS:AAL) partnership with JetBlue Airways Corp. (NAS:JBLU) on antitrust concerns, The Wall Street Journal reported, citing people familiar with the matter. The suit could come as soon as today, and is expected to argue that the alliance hurts competition and would result in higher fares, the newspaper reported. The alliance was announced in July 2020. In midday trading Tuesday, shares of American Airlines were down more than 2% and shares of JetBlue fell more than 3%, compared with a loss of around 0.9% for the U.S. Global JETS ETF (PSE:JETS) and gains of about 0.2% for the S&P 500 index. (S&P:SPX)

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