United and Continental closed the deal on Friday that will create the world’s biggest airline, although it will be months before it looks that way to travelers.
By early 2012, travelers will see a combined airline called United Airlines, with Continental’s blue and gold colors and globe logo on the tail.
Between now and then, the new company, United Continental Holdings Inc., will run the two as separate operations, with each airline’s customers checking in at Continental or United websites and airport counters. Their frequent-flier programs will stay separate for now too.
The company said travelers should begin to see a more unified brand in the spring.
Will they see higher fares too? Rick Seaney, chief executive of , said the economy will hold down prices in the short run. Eventually, he expects reduced competition to lead to higher fares — the result of Delta’s takeover of Northwest, Continental’s disappearance, and Southwest’s pending purchase of AirTran.
“If you take two carriers out, and a third pretty soon, prices are likely to go up,” he said.
Airline pricing is notoriously fickle. Fares can rise on one route while falling on another because of competition, the economy and fuel prices.
Then there are the different types of tickets. Bob Harrell, an aviation and travel consultant in New York, said business fares — high-priced, last-minute tickets — will rise now as the overall economy improves. Airlines will have less success raising leisure fares, he said, because consumers worried about jobs and home values will wait for sales.
Mergers don’t automatically lead to higher fares. Airlines are collecting less in fares per mile on domestic flights than they were before Delta Air Lines Inc. bought Northwest in 2008, thanks to the recession and competition from low-fare carriers.
They have offset weak fares by raising billions from add-on fees for checking baggage and changing flights.
