American Air Said to Explore Alaska Air Revenue-Sharing Deal

American Airlines Group Inc. and Alaska Air Group Inc. are pursuing potential revenue-sharing agreements and other strategic partnerships, people familiar with the matter said, in a push for scale as the US carriers grapple with higher costs and fierce competition.

The idea of a merger was raised as part of the talks around a stronger partnership, but did not get off the ground, said the people, who spoke on condition of anonymity because the matter is confidential.

The discussions include adding Alaska into American’s existing joint business arrangements, principally its transatlantic partnership with IAG SA’s British Airways, as well ...