American Airlines and Alaska Air Group are exploring potential revenue-sharing agreements and other strategic partnerships as both carriers navigate rising costs and intense competition in the U.S. market, according to Bloomberg.
The report said discussions have included the possibility of adding Alaska to American’s existing joint business agreements, including its transatlantic partnership with IAG Group, owner of British Airways and Iberia.
Bloomberg also reported that a merger was briefly discussed as part of wider talks over closer ties, but the idea did not advance.
The report comes days afterAmerican publicly rejected speculation about a potential merger with United Airlines after comments attributed to United CEO Scott Kirby triggered industry speculation. American said at the time it was not interested in pursuing such a combination and warned that a merger between the two largest U.S. carriers would face major antitrust obstacles.
American has been under pressure to improve margins as it continues to lag rivals Delta Air Lines and United, both of which have benefited more from premium travel demand, stronger international networks and lucrative loyalty partnerships.
Alaska, meanwhile, is in the middle of integrating Hawaiian Airlines following its acquisition of the carrier and is preparing to expand internationally using Hawaiian’s widebody fleet. The airline recently began outlining plans to use Boeing 787 Dreamliner jets to build a longer-haul network beyond its traditional West Coast and domestic operations.
American and Alaska already maintain commercial ties through the Oneworld alliance, which Alaska joined in 2021 after expanding its partnership with American on the U.S. West Coast. Neither airline has publicly commented on the latest report.
