Competition in U.S. Airline Markets: Major Developments and Economic Insights

Nearly half a century after airline deregulation in the U.S., significant consolidation has reshaped the industry, with four major airlines — American, Delta, United, and Southwest — controlling a substantial majority of the domestic market. While mergers have expanded networks, they have also sparked debates over the level of competition in the industry. This article reviews industry trends over the past two decades, including fare changes, network expansion, and market concentration, along