The Texas Business Court has denied a bid by JetBlue to escape a lawsuit alleging the airline neglected to pay American Airlines money it owed as a part of a profit-sharing agreement, finding the court has jurisdiction to hear the case.

Judge Jerry Bullard of the Eighth Business Court Division said in an opinion and order Thursday that JetBlue Airways Corp. purposefully sought benefits from the state through the agreement at the heart of the suit. American Airlines accused JetBlue of flouting the parties' Northeast Alliance, an arrangement to jointly offer increased services to travelers at East Coast airports to compete with other airlines.

"The evidence before the court provides JetBlue's Texas contacts outweigh enforcing the parties' forum-selection and choice of law clauses," according to the opinion. "Such evidence — the airline's utilization of Texas-based airports, passengers, services and personnel — supports JetBlue intended to serve the Texas market and to purposefully avail itself of the benefit of doing business in Texas."

The U.S. Department of Justice put the kibosh on the Northeast Alliance through antitrust litigation in 2023, and after the fact, American Airlines alleged it sent multiple bills to JetBlue to recoup damages and interest for American's contributions to the agreement between 2022 and 2023. JetBlue had contended that the business court lacked jurisdiction because the agreement at hand covered airports in places like New York and Boston. However, Judge Bullard was unconvinced by that argument.

While the Northeast Alliance was underway, JetBlue operated thousands of Texas flights and serviced passengers to and from Texas, according to the opinion. JetBlue also hired Texas employees at airports in the state who worked on Texas property leased by JetBlue, the judge pointed out.

"In a mega-revenue and profit-sharing agreement like the [mutual growth incentive agreement], even 2% of all revenue is a substantial profit and the financial benefit derived specifically from its Texas operations must not be negated nor ignored," according to the opinion.

Here, Judge Bullard said, American Airlines is a Texas resident headquartered in the state.

"Given the underlying litigation's facts, the exercise of personal jurisdiction over JetBlue comports with traditional notions of fair play and substantial justice," the judge wrote.

Representatives of the parties did not immediately respond to requests for comment Monday.

American is represented by Dee J. Kelly Jr. and Julia G. Wisenberg of Kelly Hart & Hallman LLP and David C. Tolley, William J. Trach and Michael Bern of Latham & Watkins LLP.

JetBlue is represented by Harriet O'Neill of the Law Office of Harriet O'Neill PC, Michael A. Hanin, Joshua A. Naftalis, Andrew W. Breland and Adair Kleinpeter-Ross of Pallas Partners (US) LLP and Paul Schuster and Warren W. Harris of Bracewell LLP.

The case is American Airlines, Inc. vs. JetBlue Airways Corporation, case number 25-BC08A-0007, in the Texas Business Court.