Back
Business

Reports Indicate United Airlines CEO Discussed Potential Merger with American Airlines

Generated on: Last updated: 3 sources
View source

United CEO Reportedly Raised Prospect of Merger with American Airlines

According to multiple news reports, United Airlines CEO Scott Kirby discussed a potential merger with American Airlines in meetings with U.S. administration officials. American Airlines has since stated it is not interested in such a deal.

Reported Discussions

Multiple outlets, citing unnamed sources, reported that United's CEO raised the idea of a tie-up between the two airline giants.

  • Reuters reported that Scott Kirby raised the prospect during a meeting with former U.S. President Donald Trump in late February 2025.
  • Bloomberg News reported that Kirby floated the idea of a merger to the White House in February 2025, adding that he had been considering a potential airline deal since fall 2024.
  • On October 30, 2025, Kirby was seen speaking to reporters outside the White House, accompanied by U.S. Vice President JD Vance and Transportation Secretary Sean Duffy. The subject of his remarks was not specified.

Company Responses and Market Reaction

  • United Airlines has declined to comment on the reports.
  • American Airlines issued a clear statement, saying it is not interested in a merger with United, has not held any such talks, and believes a combination would be negative for competition and consumers.
  • The White House did not immediately respond to requests for comment. One report indicated the administration has previously stated it has no opinion on a potential deal.
  • Following the initial Reuters report, shares of United Airlines rose 3.9% and shares of American Airlines rose 9.3% in early trading.

Industry and Regulatory Context

A merger between United and American would be unprecedented in scale for the modern U.S. airline industry and would face intense regulatory scrutiny.

  • According to aviation data group OAG, United and American were the world's two largest airlines by available capacity last year.
  • Industry consolidation has left American, United, Delta, and Southwest controlling about 80% of the U.S. domestic market. A merger would reduce the "big four" to three.
  • Analysts and experts state that such a deal would face significant antitrust hurdles from U.S. authorities.
  • U.S. Transportation Secretary Sean Duffy stated last week that any merger between larger airlines would face close scrutiny and might require the divestiture of some assets.

Reported Rationale and Reactions

CEO's Stated Rationale:
In a January 2025 podcast, Kirby discussed global competition, stating, "Size would help compete on U.S. outbound flights." He suggested larger U.S. carriers could better compete for customers who currently choose foreign carriers like Emirates for international travel.

Critical Perspectives:
Critics of airline consolidation expressed strong opposition to the reported proposal.

  • Ganesh Sitaraman of the Vanderbilt Policy Accelerator said a merger would be "an absolute disaster for the flying public," arguing it could lead to higher prices and fewer choices.
  • William McGee of the American Economic Liberties Project called the idea "the most absurd airline merger" he had heard of in over four decades, citing concerns about market concentration.

Union Perspective:
Dennis Tajer, spokesperson for the Allied Pilots Association (American Airlines pilots), stated the union is "always interested in and welcome ideas that will turn around our airline," while expressing concerns about the airline's current performance.

Potential Challenges Cited:
Reports suggest a merger would likely face opposition from unions, rival airlines, lawmakers, and airports. Concerns have been raised about overlapping routes, job losses, higher ticket prices, and reduced flight options.

Background on International Competition

The reports note a shift in the relationship between U.S. and Middle Eastern carriers.

  • U.S. airlines previously raised concerns about government subsidies received by some Middle East carriers.
  • More recently, U.S. carriers have formed partnerships with some of these airlines:
    • United has a partnership with Emirates.
    • American has a partnership with Qatar Airways.
    • Delta signed a strategic partnership with Saudi Arabia's Riyadh Air in 2024.