The competitive landscape for U.S. airlines is confronting seismic turbulence as energy price spikes wreak havoc on the industry. Why it matters: Rising fuel and labor costs are squeezing airlines β and pushing higher fares and fees onto travelers already facing economic uncertainty. The big picture: Airlines are entering a shakeout β with consolidation talk rising, the financial divide widening between the haves and have nots, and profit decisions impacting fees and service. State of play: United Airlines CEO Scott Kirby has reportedly pitched a controversial mega-merger with American Airlines. Spirit Airlines may be on the verge of liquidation, according to multiple reports , after filing for its second bankruptcy in less than a year in November. Southwest recently cut routes , and other airlines are trimming less-profitable service, too. Delta Air Lines CEO Ed Bastian reportedly said Tuesday that the carrier must "find ways" to pass along the extra costs of jet fuel to consumers.β¦