The US Department of Justice has stepped up an antitrust probe of American Airlines Group Inc's partnership with JetBlue Airways on concerns the deal may lead to inflated fares at key traffic hubs, the Wall Street Journal reported Wednesday. American and JetBlue launched the first phase of their partnership in February, even as the Justice Department and attorneys general in New York, Massachusetts and other jurisdictions were reviewing the proposed tie-up with codeshares on nearly 80 routes from New York and Boston. The Justice Department is concerned that an American-JetBlue deal could reduce competition at congested Northeast airports in New York and Boston, the WSJ reported, citing people familiar with the matter.<br/>
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American Airlines is gambling on a strong travel recovery this summer as Covid-19 vaccinations increase, with plans to fly more than 90% of its 2019 domestic seat capacity and 80% of international. The carrier will add 150 routes, including new flights and service that’s poised to be restored after getting trimmed during the coronavirus pandemic, according to a company statement Wednesday. Like its rivals, American plans to boost flights to mountain and beach destinations, including new routes to Orlando, Florida, from eight cities including Pittsburgh and Indianapolis. The beefed-up flight schedule underscores American’s bet that travel this summer will take a big step toward normalization. The airline is already in the process of putting most of its fleet back into service this quarter after parking jets when demand collapsed about a year ago. American and United have said their flights have been 80% full in recent weeks, a much higher number than during most of the pandemic.<br/>
Britain’s two biggest airlines said they remain optimistic that European travel markets will revive this summer even as vaccination campaigns stutter and plans to reopen borders are in limbo. EasyJet said Wednesday that while it will operate no more than 20% of 2019 capacity in the current quarter, it’s ready to ramp up flights from May given enough demand. British Airways said UK plans to resume travel are headed in the right direction and that Europe should follow suit in coming months. There’s flexibility to rapidly boost operations and add destinations, EasyJet CEO Johan Lundgren said on a call, while cautioning that visibility over bookings is limited. The discounter lost as much as GBP730m in the first half through March, according to a statement. The airlines are talking up a travel rebound even as the likelihood of an imminent reopening remains uncertain. BA CEO Sean Doyle predicted a revival in EU states as immunizations gain traction, citing progress in Germany, and said he’s also hopeful highly profitable trans-Atlantic flights will reopen soon. Many commentators are less optimistic than the CEOs about a summer revival. <br/>
Qantas Airways said its passenger traffic in Australia has almost completely recovered, highlighting the potential for speedier travel rebounds than previously expected more than a year into the pandemic. Capacity on domestic routes will top 90% of pre-Covid levels this quarter, the airline said in a statement Thursday, up from its previous forecast of reaching 80%. Low-cost unit Jetstar will have even more capacity than before the pandemic. Qantas said it has seen “extremely strong” demand for leisure trips and a return of business travel, which is back to about 65% of normal. “We’re now seeing really positive signs of sustained recovery,” CEO Alan Joyce said. “This is the longest run of relative stability we’ve had with domestic borders for over a year and it’s reflected in the strong travel demand we saw over Easter and the forward bookings that are flowing in.” The pace of the recovery shows there’s ready demand for travel in larger countries that have suppressed the coronavirus -- Australia has only about 150 active cases -- or are rapidly rolling out vaccinations. With international travel still paralyzed, it’s a different story for carriers with no local market, such as Cathay Pacific and Singapore Airlines, and smaller countries more reliant on overseas flights. Qantas said all of its domestic crew are back at work, as are Jetstar’s. <br/>