Delta and Northwest merged which isn’t that surprising given that the record breaking oil prices is taking its toll on airlines which are especially vulnerable to such fluctuations. A merger hopefully allow them more economy of scale. I would foresee more of such alliances and mergers and even more budget airlines filing for bankruptcy as the oil prices increase is squeezing every penny out of the already tight and efficient running of the budget airlines.
There is a limit to how much a budget airline can cut costs. They are extremely efficient even before the oil crisis and there really will be a time when you really can’t cut costs anymore.