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Southwest Airlines, one of the earliest discount airlines, will buy rival AirTran -- another sign of consolidation in an industry that has witnessed the mergers of Northwest with Delta and United with Continental over the last two years.

While the world's airlines now expect a $2.5 billion profit in 2010, reversing earlier forecasts for yet another losing year, investors should take the news with a grain of salt.

United Airlines parent UAL Corp. and AirTran Airways will release their fourth-quarter earnings Wednesday, and both are expected to post improved results, helped by lower jet fuel costs and slower declines in demand.

Continental Airlines and Southwest Airlines, the nation's largest discount carrier, posted fourth-quarter profits Thursday, helped by lower fuel costs and improved demand, but both cautioned that the sector faces more turbulence in 2010.

Southwest and Continental report quarterly earnings Thursday with investors keen to hear if the outfits will be adding back some capacity in 2010, an indication that the worst of the industry's downturn may be behind it.

Japan Airlines Corp. today became the millionth or so carrier to seek protection from its creditors in the last few years in Japan's fourth biggest bankruptcy. The filing came after a 900 billion yen ($10 billion) turnaround plan after four government bailouts to revive Asia's most indebted carrier failed.

Delta and Continental are raising the fees they charge customers to check baggage to $25 for the first bag. The move underscores how the industry is trying to squeeze every nickle from the flying public. The winners in this trend? Package-delivery companies.

As each day passes, the financial plight of the airline industry gets worse. Falling passenger traffic due to the recession, and moderately high fuel prices due to $70 per barrel oil, are squeezing margins into the red at debt-laden carriers. Japan Airlines said, on September 15th, that it would...

It seems that nearly every large carrier in the world wants to own a piece of Japan Air (JAL). Delta (NYSE:DAL) and Air France-KLM have already been said to be talking to the Asian carrier. Now one of JAL's major traffic-sharing partners, American Airlines (NYSE:AMR), may be ready to invest what...

Most of the earnings that have come out so far this season have been positive, for the companies and often the industries. Airlines continue to be an obvious exception. Continental (CAL) posted a loss of $213 million for the June quarter, an EPS deficit of $1.72. In the same quarter a year ago the...