American Airlines and US Airways will merge and create the world's biggest airline after the boards of both companies approved the deal early today, sources close to the situation said.

US Airways Group Inc has ordered 20 Airbus A350 planes honouring its promise to buy the fuel-efficient aircraft aimed at trans-Atlantic flights as part of a financing deal for the airline’s acquisition by America West Airlines.

Investors taking profits after the week’s big advance sent many US stocks falling today, but the lack of a wholesale sell-off left many on Wall Street pleased with the market’s resiliency.

THE number of Americans filing first-time applications for state unemployment benefits fell to 339,000 last week, the lowest in almost three years, suggesting job prospects are improving.