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 — and pushing higher fares and fees onto travelers already facing economic uncertainty.

The big picture: Airlines are entering a shakeout — 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.

By the numbers:…