April 28 (Reuters) - American Airlines ( AAL ) has ended

partnership talks with carrier JetBlue Airways ( JBLU ) and

filed a lawsuit seeking damages after the collapse of the

Northeast Alliance (NEA), Vice Chair Steve Johnson said in a

letter to employees on Monday.

American Airlines ( AAL ) was in talks with JetBlue ( JBLU ) for a

partnership to strengthen its network and loyalty program.

"Ultimately, we were unable to agree on a construct that

preserved the benefits of the partnership we envisioned, made

sense operationally or financially," American Airlines' ( AAL ) Johnson

said in the letter.

In February, JetBlue ( JBLU ) said it was still in talks with

multiple airlines to establish a partnership and is willing to

allocate more funds to get a deal done.

The biggest benefit of a partnership would be improving the

utility of JetBlue's ( JBLU ) loyalty points for customers which trails

multiple competitors.

The NEA was announced in July 2020 and received approval

from the U.S. Transportation Department just days before the end

of Republican President Donald Trump's first term in January

2021.

The alliance allowed the two carriers to coordinate flights

and share revenue, forming a key part of American Airlines' ( AAL )

strategy to gain ground in the New York market, where it had

been operating at a loss.

The NEA was dissolved after a non-jury trial in May 2023

concluded that the partnership violated federal antitrust law, a

ruling later upheld by a U.S. appeals court.

American Airlines ( AAL ) said on Monday that it filed a lawsuit to

recover money owed by JetBlue ( JBLU ) following the unwinding of the

NEA.

The Texas-based firm is seeking monetary relief of more than

$1 million, excluding attorney fees and costs from JetBlue ( JBLU ),

according to the lawsuit filed in a Texas court.

JetBlue ( JBLU ) did not immediately respond to a request for

comment.