Airline Consolidation

Airline consolidation may not be the panacea for the industry amid persistently high fuel prices, but observers say it would help by removing domestic capacity from the system. As several major carriers talk about possible combinations, two airlines - Delta and Southwest - gave investors another dose of reality in saying their future results will continue to be weighed down by the cost of fuel. Delta Air Lines Inc. officials were mum on the status of talks with Northwest Airlines Corp. and UAL Corp.'s United Airlines about possible combinations, as the Atlanta based carrier reported fourth quarter results that were hampered by jet fuel costs.