United Airlines CEO Scott Kirby reportedly raised the possibility of a merger with American Airlines during a late February meeting with President Donald Trump, Reuters reported. The news agency reported that Kirby raised the idea near the end of a White House meeting focused on the future of Washington Dulles International Airport. The White House later said it does not have an opinion on the reported proposal, according to a separate Reuters report.
Neither airline confirmed active merger talks in the Reuters coverage. United declined to comment, while American did not respond to Reuters’ request for comment. TravelPulse also highlighted the report as questions about airline consolidation returned to the spotlight. At this stage, there is still no public confirmation that United and American are in formal negotiations.
Why The Reported United-American Merger Matters
The report drew immediate attention as a United-American combination would mark the airline sector’s biggest consolidation move in more than a decade, Reuters reported. Reuters also noted that United and American were the world’s two largest airlines by available capacity in the previous year, citing OAG data. Based on airline schedules for that year, a merged company would control about forty percent of U.S. domestic flying capacity.
That scale would likely make the deal a major test of how the Trump administration approaches consolidation in a sector that affects fares, route competition, airport access, and loyalty programs. The overlap between the two carriers would likely draw close scrutiny in key markets, including Chicago O’Hare and major Texas operations. Investor reaction showed how seriously Wall Street took the report. Reuters said American shares rose by more than 8% after news of the White House pitch surfaced.
The political context has also helped drive the story. Earlier this month, Transportation Secretary Sean Duffy said he sees room for airline mergers. Duffy also said any transaction would face close review and would likely require airlines to give up some assets. Those comments came shortly before Reuters reported Kirby’s conversation with Trump. Even so, the White House later said it had no opinion on the possible transaction.
Any Airline Merger Plan Would Face Steep Regulatory Hurdles
In recent years, courts have blocked JetBlue’s proposed acquisition of Spirit Airlines and ruled against the American Airlines-JetBlue Northeast Alliance, with the U.S. Department of Justice arguing in both cases that the deals would reduce competition and harm travelers.
Those rulings do not determine the outcome of any future United-American proposal, but they do show how aggressively regulators and courts have approached airline competition issues. Reuters also reported that the financial complexity would be significant even before regulators addressed competition concerns. United carries about $20 billion in long-term debt, and American has roughly $25 billion in debt.
