A new report from the International Air Transport Association (IATA) covering 136 airline mergers and acquisitions (M&A) between 2020 and 2025 reveals a fundamental shift in the industry’s M&A dynamics. The study highlights that airlines are increasingly moving away from traditional rival mergers (horizontal integrations) and focusing on vertical agreements with technology companies, service providers, and suppliers.
The key findings of the report indicate that 66% of the transactions were vertical partnerships, 63% were minority share acquisitions, and 46% were focused on innovation and digitalization. This trend suggests a growing emphasis on collaboration rather than control within the aviation sector. The United States led in M&A activity with 26 transactions, followed by China, the European Union, and Japan. The report notes that traditional horizontal mergers are hindered by obstacles such as national ownership laws and bilateral air agreements.
IATA’s research underscores that vertical integration and technology-focused investments will play a critical role in the future of the airline industry. The shift towards strategic partnerships over outright consolidation reflects a changing landscape where airlines are seeking to enhance their digital capabilities and operational efficiency through targeted collaborations.
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This post was published on 9 September 2025 1:09 pm