United Airlines CEO Reportedly Pitched Merger with American to Trump
The CEO of United Airlines, Scott Kirby, is said to have pitched a blockbuster merger with American Airlines during a meeting with former US President Donald Trump in late February, according to a Reuters report citing two unnamed sources. This proposal, if pursued, would combine the world's two largest airlines by available capacity, including international flights, as confirmed by aviation data group OAG for last year.
Potential Impact on Competition and Passengers
Such a merger would represent the largest consolidation in the airline industry in at least a decade, transforming the US Big Four carriers—United, American, Delta, and Southwest, which collectively control 74% of passenger capacity—into a Big Three. Critics have swiftly warned that this could lead to higher ticket prices, more fees, and fewer options for passengers. Ganesh Sitaraman, director of the Vanderbilt Policy Accelerator and author of Why Flying Is Miserable, emphasized that fewer choices would detrimentally affect travelers seeking to move from point A to point B.
Market Reaction and Regulatory Scrutiny
Following the report, shares in United rose 2.4% during pre-market trading in New York, while American's shares climbed 7.1%. However, any deal is expected to face intense competition scrutiny from regulators, unions, rival airlines, lawmakers, and airports. US Transportation Secretary Sean Duffy acknowledged there is scope for consolidation in the aviation industry but stressed that any merger would require close examination and potential asset divestments to address antitrust concerns.
Uncertain Response and Industry Chatter
It remains unclear how Trump responded to Kirby's proposal. United declined to comment, and American and the White House did not immediately respond to requests for comment. Duffy noted there has been a lot of chatter about potential deals in the sector, highlighting ongoing discussions about mergers amid industry challenges.
