American Airlines (AMR) and US Airways are closer to a merger agreement that would create the world's biggest airline, according to several news outlet reports Thursday morning.
The two airlines have been negotiating a deal for at least a couple of months and neither airline has confirmed whether the deal will happen or what the timing might be. A The Wall Street Journal report this morning says the deal could be announced as early as Monday, while a CBS network news report and others say the deal won't be finalized for several weeks. All the reports cite unnamed sources close to the merger talks
The two major airlines have been working on trying to make a deal work the past few months. If a deal can be forged, it would create an airline that would be the biggest global airline by traffic and be worth more than $10 billion.
United Continental is the biggest U.S. airline by traffic, but that could change if the merger happens.
The all-stock deal would also allow American to emerge from Chapter 11 bankruptcy.
By Beth Belton