United Kingdom
United States
Asia Pacific
Full speed ahead for US airline mergers
Whatever happens to the rumored Delta-United merger, similar activity is in the air in the near future for other US carriers, according to various sources.
“Cruse oil prices are climbing dangerously toward $100 a barrel. The US economy is slowing. Airline stocks are sinking. And labor costs are soaring,” says MSNBC.
The result is that as the airlines start to emerge from bankruptcy and post their best profits since 2001, the industry’s future becomes shaky.
Consolidations? Only a question of why and how.
“That’s a recipe for restructuring in the industry,’’ said Vaughn Cordle, CEO of Airline Forecasts in Washington. “There are just too many airlines right now. If the jet-fuel prices hold, something else will have to give.”
Industry analysts say that means more mergers and higher air fares.
Published reports last week that centered on a possible merger of United and Delta to create the world’s largest airline. But that was just a hint of what the future may hold, even if that alliance never happens.
There’s speculation that some airlines might try to rush into merger talks before a new administration in Washington takes over.
But some major carriers appear unwilling to take on the headache of risky mergers. That would mean months of difficult strategic planning. It would also include reviews by the US Justice Department that can take up to two years.
Goldman Sachs analyst Robert Barry wrote that “all airline management teams and boards have been discussing consolidation ad nauseam, for months if not longer.”
Report by David Wilkening
David
Walt Leger on New Orleans’ Resilience and Major Events Ahead
Cindy Mackin Shares Estes Park’s Winter Thrills
Mark Jaronski of Explore Georgia on FIFA World Cup 2026
Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange
North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
BA suspending all Heathrow to Abu Dhabi flights
Unexpected wave rocks cruise ship
Report: Cruise guest died after ship lashed in heavy storm
British teen in serious condition after paraglider collision
JetBlue scraps London Gatwick flights