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The deal would create the world's largest airline carrier.
The boards of American Airlines and US Airways have approved a merger between the two airlines that would create the world's largest carrier.
The deal was announced Thursday, CBS News reported.
Under the agreement, creditors of bankrupt American Airlines would hold 72 percent of the combined airline, and US Airways shareholders would own the rest, the WSJ said.
CBS News reported the merged airline will keep the "American" name, headed by current US Air CEO Doug Parker.
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"The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace," Parker said in a statement. "Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to go."
The new American airline, United, Delta and Southwest will now control over 70 percent of the US airline market. Analysts told CBS News this could mean higher ticket prices for consumers.