Fitch Says AMR/US Air Antitrust Settlement Positive for Industry

The settlement agreement between the Department of Justice and AMR Corp./US Airways Group, Inc. (US) is a positive for the two companies and for the industry as a whole, according to Fitch Ratings. A successful merger of US and AMR continues the trend of improved U.S. airline credit profiles over the last five years that have been driven by a more sustainable industry structure. The strongest carriers have also benefitted from disciplined capacity management practices, higher passenger yields and better revenue fundamentals. Concessions included in the DOJ settlement are viewed as relatively minor considering the scale of the merger, and leave intact much of the benefit expected from a combined US/AMR route structure.