American rejects merger talks with United Airlines

Industry:    8 hours ago

American Airlines said on Friday that it was not interested in a merger with United Airlines and had not held any such talks, diminishing prospects of an ​industry-reshaping deal that would face tough regulatory scrutiny.

A combination of two of the ‌largest U.S. network carriers would mark the biggest consolidation move in more than a decade, further tightening a domestic market already dominated by four similarly sized players. Including international flights, United and American were already the world’s ​two largest airlines by available capacity in 2025, according to OAG data.

That scale would, ​however, invite extraordinary scrutiny from regulators, labor unions and consumer advocates wary of ⁠higher fares and reduced competition, leaving the deal with slim chances of approval, analysts and industry ​officials have said.

There is also significant overlap between American and United, including Chicago O’Hare and major ​hubs in Texas.

“While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers,” American Airlines said, adding that such a deal would be inconsistent with its ​understanding of the Trump administration’s approach to antitrust enforcement.

United Airlines declined to comment, while the ​White House did not immediately respond to a request for comment.

The White House has previously said it has ‌no opinion ⁠on a potential United Airlines deal for American Airlines.

United Airlines CEO Scott Kirby pitched the potential for merging with American Airlines in a meeting with U.S. President Donald Trump in late February, Reuters reported on Monday.

The meeting with Trump was three days before the start of the U.S.-Israeli ​war with Iran that ​sent jet fuel prices ⁠soaring and has led airlines to raise fares and fees to offset higher costs.

Kirby has argued to administration officials that a combined airline ​would be a stronger competitor in international markets and noted the Trump ​administration has ⁠focused on U.S. trade deficits around the globe, according to sources.

But one person close to the White House had told Reuters there was skepticism about such a tie-up, given its potential impact on ⁠competition and ​ticket prices at a time when the administration is ​already focused on rising costs for consumers ahead of midterm elections in November.

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