United Airlines CEO Scott Kirby has put the possibility of a merger with American Airlines on the table, according to people familiar with the talks — a bold idea that would face strong resistance from regulators, even under Donald Trump’s pro-business administration.
Kirby pitched the idea to senior administration officials, though it’s unclear whether there have been concrete moves since then or whether there is already a process underway to explore a possible deal, according to these people, who requested anonymity because the conversations are private.
The executive took the proposal directly to President Donald Trump during a Feb. 25 meeting to discuss plans to modernize Washington Dulles International Airport, two of the people said.
A spokesperson for United Airlines declined to comment, as did representatives for American Airlines. American shares rose 7.6% at the opening of trading in the US, while United shares rose 1.5%.
United and American are among the four largest airlines in the United States, together controlling more than a third of the market. A combination would create the largest airfield on the planet. Therefore, any merger between these two aviation giants would raise serious antitrust concerns and would likely face strong backlash from consumers, politicians and competitors in the American market.
A potential merger between United and American “would be an absolute disaster for the flying public,” said Vanderbilt Law School professor Ganesh Sitaraman, because such a deal would lead to higher fares and fewer options for passengers.
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“Even the most permissive antitrust regulator should immediately block such a blatantly anti-competitive merger,” Sitaraman said.
The discussions take place at a time when the recent turbulence in the market has once again placed the possibility of consolidation at the center of the debate. Kirby said in a memo to employees last month that the company would benefit from any industry shakeout amid rising oil and fuel prices, which could open up acquisition opportunities.
“We will be ready to leverage some of these assets — it could be a win-win situation for them,” Kirby said in an interview with Bloomberg Television on March 24 in Los Angeles. Asked if this would mean buying entire companies, he replied: “We will see, there are a lot of rumors about that.”
In Kirby’s case, a deal involving American Airlines would also have a personal component. He was president of American, but left the company after it became clear there was no path for him to take over as CEO. Kirby joined United as president in 2016, before leading the company.
The two companies have been in a constant battle over strategies, especially at Chicago’s O’Hare International Airport, where they compete for access to gates and market share.
Kirby also criticized American for being too slow to expand its offering of premium products, which have proven popular and profitable at United and Delta Air Lines.
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The union of the two would create an aviation giant with more than US$100 billion in revenue and a fleet of more than 2,800 aircraft. But there would also be significant hub overlap in the US, which would likely trigger strong opposition from smaller rivals who would feel squeezed out of the market.
The United CEO’s remarks come as airlines face higher jet fuel prices due to the war between the US and Iran and the effective closure of the Strait of Hormuz, a crucial route for transporting oil. Kirby has already responded by reducing the company’s capacity somewhat, saying he wants to be prepared for possible cost increases.
Mergers between American airlines must be analyzed and approved by the Department of Transportation, in addition to the Department of Justice. Transport Secretary Sean Duffy said the government would assess a number of factors when considering possible combinations, including the impact on competition – both domestic and global – and ticket prices.
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“President Trump loves to see big deals happen,” Duffy told CNBC on April 7th. “Is there room for some mergers in the airline industry? Yes, I think there is,” he declared.
However, Duffy added that he does not intend to “commit to anything in advance”.
He also said that, if there is a merger between two major airlines, they will have to “dispose” of part of their assets because the US does not want to see a single company with excessive market share, which could raise prices for consumers.
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United has a market value of around US$31 billion, compared to around US$7.4 billion for American. United shares are down 15% for the year, while American is doing even worse, down 27% since the beginning of 2026.
With American, based in Fort Worth, Texas, United would gain access to the largest domestic network in the United States — and put an end to the simmering turf war between the two in the Chicago market.
But the move would also come at a time when American faces a series of operational and strategic challenges, from the effort to reduce about $35 billion in debt to trying to win back corporate passengers upset by an unpopular — and later reversed — marketing strategy. American CEO Robert Isom is under pressure from pilots who blame him for not closing the gap on more profitable rivals like Delta and United itself.
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The U.S. airline industry as it exists today was built largely through consolidation processes, including mergers between Delta and Northwest Airlines, United and Continental, and American and US Airways.
Still, the industry’s history is full of failed deals.
In January 2025, United denied that it was in negotiations for a deal with JetBlue Airways Corp. A previous alliance between JetBlue and American was dissolved on the order of a federal judge for violating U.S. antitrust laws. A separate deal in which JetBlue attempted to buy Spirit Airlines was also blocked based on competition concerns.
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