United Airlines CEO pitches possible combination with rival American Airlines: sources
Any merger between the two would pose serious antitrust concerns and likely face backlash
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[NEW YORK] United Airlines chief executive officer Scott Kirby has floated a possible combination with American Airlines, according to people familiar with the conversations, an audacious proposition that would face intense scrutiny even under the business-friendly Trump administration.
Kirby has pitched the idea to senior government officials, though it is unclear if any overtures have since been made or if an actual process is under way to explore a deal, said the people, who asked not to be identified because the conversations are private.
A spokesman for United Airlines declined to comment, as did representatives for American Airlines.
United and American are among the top four US carriers, together controlling more than a third of the market. A combination would create the largest airline on the planet.
As a result, any merger between the two aviation giants would pose serious antitrust concerns and likely face significant backlash from consumers, politicians and rival US airlines.
At the same time, the deliberations show how recent market upheaval has brought the possibility of consolidation to the fore. Kirby told employees in a memo last month that the carrier would benefit from any shake-out in the industry as part of rising oil and fuel prices, potentially providing purchase opportunities.
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“We’ll be there to pick up some of those assets, might be a win-win for them,” Kirby said in a Bloomberg Television interview in Los Angeles on Mar 24.
Asked if that would mean buying entire companies, he said: “We’ll see, there’s lots of rumours about that.”
Long flight path
For Kirby, a deal involving American Airlines would also be personal. He was previously president of American, but left after it was made clear he did not have a path to becoming the carrier’s CEO. He joined United as president in 2016 before rising to the top job.
The two companies have engaged in a continuous exchange of strategic one-upmanship, particularly at Chicago’s O’Hare International Airport, where they have battled over gate access and market share.
Kirby has also faulted American Airlines for being too late and too slow to add more premium products, which have proven popular and lucrative at United and Delta Air Lines.
The United CEO’s considerations come as airlines are grappling with higher jet fuel prices due to the US-Iran war and the effective closure of the Strait of Hormuz, a key passageway for oil transports.
Kirby has already responded by taking some capacity out of the market, saying he wants to be prepared for potential cost increases.
US airline mergers have to be reviewed and approved by the Transportation Department, as well as the Department of Justice.
Transportation Secretary Sean Duffy said that the government would look at several factors when considering potential tie-ups, including the impact on competition – both domestically and globally – and ticket prices.
US President Donald Trump “loves to see big deals happen”, Duffy told CNBC on Apr 7. “Is there room for some mergers in the aviation industry? Yeah, I think there is.”
However, he added that he would not “pre-commit to anything”.
Duffy also said if there is a merger between two larger airlines, they will have to “peel off” some of their assets because the US does not want to see one carrier with too much market share, which could drive up consumer prices.
United has a market value of about US$31 billion, compared with just US$7.4 billion for American. United’s stock has lost 15 per cent in value this year, though American has fared worse, losing 27 per cent since the start of 2026.
Shares of American jumped as high as 11 per cent in postmarket trading after the Bloomberg News report. United’s stock gained as much as 1.3 per cent.
Pros and cons
With Fort Worth, Texas-based American, United would gain access to the largest US domestic network – and scuttle the simmering turf war between the carriers in Chicago.
But it would also come as American is navigating a slate of operational and strategic challenges, from cutting about US$35 billion in debt to trying to win back corporate flyers alienated by an unpopular – and since reversed – marketing strategy.
Meanwhile, American Airlines CEO Robert Isom is under pressure from pilots blaming him for failing to close the gap with more profitable peers, including Delta and United.
The US airline industry as it exists today was built largely through consolidation, including Delta and Northwest Airlines, United and Continental, and American and US Airways.
Still, the industry’s history is lined with stalled deals.
In January 2025, United denied that it was in deal talks with JetBlue Airways. A previous alliance between JetBlue and American was ordered dismantled by a federal judge for violating US antitrust laws.
A separate deal by JetBlue to acquire Spirit Airlines was also blocked on antitrust grounds. BLOOMBERG
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