May
03
2010

United and Continental Merger

United and Continental Airlines announced their plans to merge today and the combination of the two airlines will create the world’s largest carrier in terms of passenger traffic. Together United and Continental will surpass Delta with 21% of seats in the U.S. market after the acquisition of Northwest in 2008. Among US Internet visitors, the website of Southwest Airlines consistently ranks 1st by market share of visits, followed by Delta and American. Assuming a combination of visits for the websites of United and Continental, the total market share of visits would equal 11.67% and rank in third place, displacing American.
WMS Airlines 05-01-10.png
As an example of the combined traffic following a merger or acquisition, the share of visits to Delta.com increased following the redirects of traffic to nwa.com.
WMS DNUC 05-01-2010.png
The combination of key markets in the US will be beneficial for both United and Continental, where each attract a significantly higher share of visits in DMAs where their hubs are located. For the 4 weeks ending April 24, 2010, the top 2 DMAs ranked by visits for Continental.com were around the Newark, NJ and Houston, TX hubs with nearly 27% of visits in the New York, NY DMA and another 10% of visits from the Houston, TX DMA. Similarly for United, the top DMAs ranked by visits were Los Angeles, CA, San Francisco, CA and Chicago, IL. The DMAs for each of the airlines complement each other well to provide strengths in major US markets with little overlap in audiences.
DMA UC 04-25-2010.png


  1. It looks like historically Delta and Northwest had about 9% and 6% shares respectively. Post merger, they have about 13%, so there was some contraction.
    I’m thinking if Continental / United experience the same scenario due to overlapping route structures, etc. they will wind up falling short of American by a point or so.
    That will be an interesting analysis to run once the merger is complete and the volumes stabilize.

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