Sean Duffy has indicated there is scope for further consolidation in the US airline sector, as rising costs and uneven profitability continue to pressure carriers.
Speaking to CNBC on Tuesday (April 7), Duffy said “there is room for some mergers in the aviation industry”, including within the US market, although any deal would be assessed on a case-by-case basis.
His comments come amid renewed industry speculation that one of the “Big Four” US airlines could seek to acquire a smaller competitor, as higher fuel costs and margin divergence widen the gap between the strongest and weakest performers.
Duffy emphasised that any transaction would face scrutiny from both the Department of Transportation and the Department of Justice, with a focus on maintaining competition and protecting consumers.
“I want to wait and see… what impact does it have on competition… what does it do for the consumer and pricing,” he said, adding that consolidation would also be assessed in the context of ensuring US airlines remain globally competitive.
While not ruling out increased market concentration, Duffy signalled limits to consolidation, noting that larger deals would likely require asset disposals to avoid excessive dominance by a single carrier.
The remarks suggest a potentially more flexible regulatory stance toward consolidation than in recent years, although approval will remain contingent on competition concerns and consumer impact.
Separately, Duffy highlighted ongoing pressure on US air traffic control capacity, noting a continued staffing deficit despite the hiring of 2,400 controllers over the past year, alongside a planned $12.5bn investment in technology upgrades across radar, telecoms and system software.