4/19/2013 10:52:00 AM

Airline Mergers Will Likely Mean Higher Fares

Photo by Patrick Cardinal via Flickr
The potential merger of American Airlines and US Airways could spell fare increases for fliers this year, according to Market Watch. In markets where American and US Airways typically competed, the merger would curtail competition and likely cause higher ticket prices. When United and Continental merged in 2010, for example, they were able to own 79% of the traffic between Houston and Chicago O’Hare. And two years later, the fares were up by a whopping 57%. Ouch. So what routes should be worried? Philly and Miami for sure. If the merger goes through (and no other airlines enter the fray), the merged airline would have 98% of the flights on that route.

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