Low-Cost Airlines ‘Ripe’ For Mergers, Deutsche Bank Analyst Says

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The US airline industry is primed for a new round of mergers as low-cost carriers are squeezed by the oil-price spike, according to Deutsche Bank analyst Michael Linenberg.

As gasoline and ticket prices rise, companies like JetBlue Airways Corp. and Frontier Group Holdings Inc are likely to see a decrease in bookings from budget conscious travelers, placing financial pressure on the carriers, analyst Michael Linenberg said in an interview. That could result in more joint ventures between airlines, he said, and potentially outright mergers, as well.