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 megamerger will mean higher airfares? That's not part of the plan, says Continental CEO Jeff Smisek. The post-merger airline is expected to add $1 billion or so to the bottom line over three years, but mostly because of cost-cutting.