Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Airlines

The Fallout From Fewer Airlines


Over the past three-and-a-half decades, the U.S. airline industry has been swallowing itself, as 32 carriers merged and re-merged to leave four big airlines and Southwest (LUV), plus the regional operators. It’s about to become even more compact: On Nov. 12 the U.S. Department of Justice dropped its objections to the marriage of American Airlines and US Airways (LCC). Executives say that the efficiency of fewer airlines increases stability, benefits investors and customers, and will speed the industry’s slow return to profitability. In the first nine months of 2013, U.S. airlines eked out a 4 percent profit, but only because fuel costs dropped. It may not be easy to convince the public that they’ll really gain. Consolidation has been accompanied by higher prices, fewer flights in many markets, and a generally lousier flying experience.

Bachman is an associate editor for Businessweek.com.

LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus