airline consolidation

AirTran Shares Spike 65% on Southwest Deal

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.

Continental-United: CEO Says No Fare Hike Planned

Worried that the merger of Continental and United Airlines will mean higher fares? That's not part of the plan, said Continental CEO Jeff Smisek. The post-merger airline is expected to add $1 billion or so to the bottom line over three years, but it plans to get there mostly by cutting costs.