American Airlines-US Airways merger may be optimal for IAG

Market chatter over potential consolidation in the airspace sector has picked up recently with the latest major report being that International Airlines Group (IAG) signed a non-disclosure agreement with American Airlines in order to study a potential purchase of a stake in the US company. Meanwhile, other rumours suggest that American Airlines is also holding talks with US Airways Group for a potential merger.

Market chatter over potential consolidation in the airspace sector has picked up recently with the latest major report being that International Airlines Group (IAG) signed a non-disclosure agreement with American Airlines in order to study a potential purchase of a stake in the US company. Meanwhile, other rumours suggest that American Airlines is also holding talks with US Airways Group for a potential merger.

Analysts at Banco Sabadell have weighed in and pointed out that American Airlines filed for bankruptcy protection and must present a restructuring plan. As such, it remains in the air whether another US airline will acquire American Airlines and threaten the joint venture with IAG.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.