In various sectors of the economy, M&A is a growth avenue for players. In the airline industry, it's a way to achieve market leadership and improve operating margins, ensuring companies' financial health.

Worldwide, high-profile airline acquisitions have created conglomerates that dominate their airspace. In the US, after significant mergers over the past 20 years, the sector is currently dominated by Delta, United, and American Airlines. In Europe, despite the increased power of regional airlines, the Lufthansa, IAG, and Air France-KLM groups still have the largest presence on the continent.

Brazil, in turn, has seen the collapse of traditional companies (such as Varig, Vasp and Transbrasil) over the last 20 years and the rise of LATAM, Gol and Azul, which have consolidated their position in the sector through mergers and acquisitions, seeking to dominate the country's main airports and routes.

We will look at the reasons why M&As occur and how this affects the concentration of the airline industry.