America West Airlines expects a wave of mergers to sweep US low cost carriers, thinning out the crowded industry, its chief executive said on Thursday, adding that he sees his company participating.

Speaking to reporters at America West headquarters, Doug Parker said there are too many low-fare carriers. Because of their low expenses, these airlines have stayed profitable as high fuel costs pushed many larger rivals into the red.

"We don't need seven low-cost carriers in the United States," Parker said. "That's far too many."

America West has been trying to imitate those carriers' success at slashing operating costs and expects to be one of the survivors, he said.

Parker predicted that the number of low-cost airlines would fall to two or three over the next three to five years from at least seven today.

"We certainly believe we will be one of those and play a part in that consolidation as it happens," he said.

Low-fare competitors like Southwest Airlines, are the envy of the industry as they manage to reduce costs and cut into the business of the larger legacy airlines.

America West last month reported a fourth quarter loss of USD$47.8 million, reversing a year-earlier profit.

"The environment out there is a mess," Parker said, "and it's about as bad as it's ever been."

Parker stopped short of identifying which airlines are most likely to be acquired.

Aside from Southwest, leading low-cost carriers include JetBlue Airways, AirTran Airways, Independence Air and ATA Airlines.

Analysts see Southwest, JetBlue and AirTran as the industry's most robust, while Independence Air's parent FLYi runs a risk of defaulting on its debt, Standard & Poor's has said. ATA is reorganizing under Chapter 11 bankruptcy protection.