U.S. Airlines Unlikely to Face Antitrust Case on Capacity

  • Justice Department was probing supply of available seats
  • Federal inquiry included the four largest U.S. airlines
Photographer: Patrick T. Fallon/Bloomberg
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The U.S. Justice Department is unlikely to bring an antitrust action against U.S. airlines after finding little evidence the carriers coordinated to raise fares by curbing the supply of seats, a person familiar with the matter said.

The U.S. has been investigating major U.S. carriers at least since the summer of 2015, when some airlines confirmed getting letters from the Justice Department requesting documents about their actions on seating capacity. The availability of seats is closely tiedBloomberg Terminal to air fares, because airlines find it difficult to raise prices when capacity exceeds demand.