Federal regulators finally gave Alaska Air approval to complete its acquisition of Virgin America -- as long as it makes two small concessions.
News & Analysis: Virgin America
A big reduction in unit costs helped Virgin America report a record profit in Q3.
Alaska Air and Virgin America have slightly adjusted the target for when they will complete their merger, but investors shouldn't read too much into it.
Unit revenue is sinking fast at Virgin America, but Alaska Air still made the right move by agreeing to acquire it.
Persistent unit-revenue declines dragged down shares of the West-Coast-focused airline last month.
Capacity increases and lower costs fueled a more than 70% jump in the airline's profits.
A month ago, JetBlue wanted to buy Virgin America. Now, it just wants Virgin America's customers.
The recently announced Alaska Air-Virgin America tie-up isn't likely to set off another round of airline merger mania.
What both companies get out of the merger, challenges in the airline industry, other potential winners, and more.
With Virgin getting a 90% or so premium over its recent stock value, investors have reason to question the numbers for this deal.