Are Airlines Colluding To Keep Fares Sky-high?

(RTTNews) - The Justice Department has initiated a probe to find out if airlines are colluding to limit seating capacity in order to benefit from higher airfares.

As part of its probe, the Justice Department has asked airlines, documents of the last two years pertaining to decisions made on limiting capacity.

The probe comes about two years after the Justice Department approved the merger of American Airlines and US Airways, after initially opposing it; the combination was the latest among a slew of mergers supposed to benefit consumers.

But fears gain credence that airlines, in order to please Wall Street, are colluding to limit capacity as this could force passengers to shell out more for the limited available seats.

Currently, 80 percent of the nation's air traffic is dominated by four airlines: American, United Airlines, Delta Air Lines and Southwest Airlines.

After years in the red, the airline industry has been reaping healthy profit by cutting down unprofitable routes, reducing costs, and restraining growth to benefit from higher airfares. According to the Bureau of Transportation Statistics, the average domestic airfare rose 13 percent from 2009 to 2014, when adjusted for inflation.

The Justice Department intends to find out if airline company executives are coordinating their efforts, communicating with one another through public statements or private statement to market analysts.

"We are investigating potential unlawful coordination among some airlines," the New York Times reported, quoting Emily Pierce, a Justice Department spokeswoman.