Airlines, 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.

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.