U.s. Airways | featured news

US Airways is blaming a dip in revenue on federal budget cuts, Reuters reports. The carrier says it thinks the cuts have reduced demand for last-minute tickets, which typically go for the highest fares.

A judge on Wednesday approved AMR Corp's plan to merge with US Airways Group , a step toward creating the world's largest airline. AMR, parent of American Airlines and in bankruptcy since November 2011, must still construct a formal restructuring plan incorporating the merger that meets court and creditor approval before the airline can emerge from bankruptcy.

American Airlines and US Airways will merge and create the world's biggest airline. The boards of both companies approved the merger late Wednesday, according to four people close to the situation.

US Airways Group Inc and AMR Corp are nearing an $11 billion merger that would create the world's largest airline and could announce a deal within a week, after resolving key differences on valuation and management structure, people familiar with the matter said.