(Reuters) - A U.S. appeals court on Friday rejected a bid by American Airlines ( AAL ) to overturn a judge's decision that sided with the U.S. Department of Justice and declared that its now-scrapped U.S. Northeast partnership with JetBlue Airways ( JBLU ) was anticompetitive.

The Boston-based 1st U.S. Circuit Court Appeals agreed with the lower-court judge that the airlines' "Northeast Alliance" that allowed the two carriers to coordinate flights and pool revenue violated federal antitrust law.

(Reporting by Nate Raymond in New York)