DoJ reportedly backs off airline collusion case

|By:, SA News Editor

The U.S. Justice Department is not expected to bring antitrust action against U.S. airlines after finding little evidence the four major carriers - DAL, LUV, AAL and UAL - coordinated to raise fares by curbing the supply of seats, according to reports.

Investigators failed to uncover sufficient evidence of collusion among airlines to restrain seats, and the DoJ is not likely to pursue any formal action.

Analysts criticized the probe when it became publicly known in 2015, saying the airlines had added more seating capacity than many investors wanted rather than cutting capacity.

ETF: JETS