With the recent bankruptcy filing by American Airlines (AA), the airline industry is once again in a state of flux. In fact, with only five major air carriers remaining, AA’s financial difficulties have resulted in an opportunity for further mergers and acquisitions.

Delta Air Lines Inc. currently ranks second in terms of total airline traffic, and it appears that the industry giant wants to compete for first place. In 2008, Delta acquired Northwest Airlines, which significantly increased its operation.

Now, Delta, along with its financial advisors, is considering its options concerning the acquisition of yet another airline. By acquiring another airline, Delta would further consolidate the airline industry and arguably eliminate some of its competition.

Among its options, Delta is rumored to be considering the acquisition of the parent of AA, AMR Corp., currently the third-ranked airline. Delta is also considering US Airways Group as another possible acquisition target.

At the same time, US Airways could also become involved in a possible merger with AMR. If that were to transpire, the combination could give Delta a run for its money. Currently, US Airways is operating in the fifth spot in terms of total airline traffic. Combining its business with AA would certainly help it to compete with Delta.

On the other hand, US Airways is also apparently willing to work with Delta and is not opposed to being acquired by its industry rival.

Though these possibilities are only in the planning stages, it appears that these three major airlines are looking to perhaps change the landscape of the airline industry yet again.

Source: The Wall Street Journal, “Delta Weighs a US Air Deal,” Gina Chon, Anupreeta Das and Susan Carey, Jan. 28, 2012