United Airlines Chief Executive Officer Scott Kirby has brought up the idea of a potential combination with American Airlines, Bloomberg reported on Monday, citing those familiar with the matter.
Kirby reportedly has pitched the idea to senior government officials and held a meeting with President Donald Trump, according to Reuters.
Kirby and Trump spoke on February 25, where Kirby argued that a United–American merger would make for a stronger competitor in the international market, appealing to the Trump administration’s wishes to address the nation’s trade deficits around the world.
United and American make up a significant bulk of the U.S. airline industry, controlling more than a third of the market. Any merger proposal between the two carriers would create the largest airline in the world and would be met with intense antitrust scrutiny from both consumers and Congress.
Transportation Secretary Sean Duffy signaled interest in deals involving consolidation in the U.S. airline industry during a CNBC interview on April 7.
“Who knows who is going to match up? There’s always chatter. Is there room for some mergers in the aviation industry? Yeah, I think there is,” Duffy said.
Duffy noted that the U.S. does not want to see a single airline hold too much market share, leading to higher prices for consumers.
“If there was a merger between some of the larger airlines, they’re gonna have to peel off some of their assets,” he added.
Amid a volatile cost environment today for airlines with unrest in the Middle East, the industry has seen growing chatter on consolidation. In a memo to employees in late March, Kirby stated that the airline would look to capitalize on opportunities that may arise, including buying assets and absorbing network changes.
United entered a partnership with JetBlue in 2025, offering reciprocal benefits to their loyalty programs and swapping slots. United has long desired to make a return to New York’s JFK airport, and JetBlue’s profitability struggles since 2019 have created rumors of a combination between the two airlines over the past year.
JetBlue has reportedly been considering selling itself to a competitor, including Alaska, Southwest, and United, according to a Semafor report in late March.
A merger with American would offer similar New York City benefits for United, but would make for a significantly steeper hill on political and regulatory grounds, requiring divestitures at several key hubs.
Kirby began his career at America West Airlines in 1995 and made his way to US Airways and American Airlines through mergers. He worked closely with many of American’s current executives, including former CEO Doug Parker and current CEO Robert Isom. Following a stint as American’s President, Kirby moved on to United Airlines in 2016.
United has a market value of $31 billion, while American has a market value of $7.4 billion. American is currently working to reduce its debt, which peaked at more than $50 billion during the pandemic, and is down to about $36 billion today. The airline has fallen short of its revenue potential in recent years and has seen limited profitability, placing Chief Executive Officer Robert Isom on the hot seat.
For United, acquiring American would mean access to a massive domestic network, dominating Latin America, and becoming the largest airline in the world.
Featured image by the author.
