More Mergers, More Activist Investors: Delta Execs See a Shakeup for Low-Cost Airlines

Delta executives said Tuesday that they believe the airline industry will see more consolidation, especially among low-cost carriers as revenue from economy cabins declines. 

CEO Ed Bastian said during a call with analysts that low-cost carriers with sluggish profits may also have to resort to liquidation or face more activist investors, as in the case of Southwest Airlines. 

“I think it’s very clear that you’re going to see further rationalization, can come in lots of forms,” Bastian said. “It could be in consolidation, it could be liquidation, could be internal, can be the external drivers as we’ve seen in the industry with activists involve