United CEO Proposes Merger with American; Airline Rejects

United Airlines and American Airlines, the first- and third-ranked U.S. carriers by passenger-mile revenue, are the focus of a proposed combination. American’s current structure stems from its 2013 merger with US Airways. United’s CEO Scott Kirby argues the tie-up would add capacity, expand international routes, generate millions of jobs, and strengthen the domestic aircraft-manufacturing sector.

PBS News Hour

Feb 25, 2024 – Kirby met President Donald Trump and pitched the merger. Apr 17, 2024 – American said it was not engaged in talks and warned the deal would harm competition. Monday – Kirby reiterated confidence in regulatory approval and traveler benefits.

The Hill

United’s share price fell 1.4 % to $91.72 on the Monday of Kirby’s statement, a roughly 20 % decline since the Iran-related fuel price surge. American’s shares dropped 2 % to $11.84, down about 15 % over the same period.

PBS News Hour

Kirby claims the merger would expand international service, increase economy-seat supply, and create millions of jobs, bolstering the U.S. aircraft sector. Critics argue the combined carrier would dominate passenger-mile revenue, reduce competition, and likely trigger antitrust challenges.

The Hill

United’s press release framed the deal as “adding, not subtracting,” promising a “truly great airline that customers love” and asserting confidence in regulatory approval. American’s April 17 release said it was not engaged in talks and warned the combination would be negative for competition and consumers. President Trump told CNBC he does not want the airlines to merge.

PBS News Hour

American’s statement labels the proposal anticompetitive, echoing broader regulatory skepticism. Trump’s public opposition adds political resistance, suggesting the merger would face both market-based and policy hurdles.

The Hill

• “I was confident that this combination, which would have been about adding and not subtracting, creating a truly great airline that customers love, could get regulatory approval.” — Scott Kirby, United CEO

The Hill

• “American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” — American Airlines (press release)

PBS News Hour

• “I always knew that the only way any merger could be successful (and approved) is if it was great for customers and with a willing partner that shared my big, bold vision,” — Scott Kirby, United CEO

The Hill

• “Since previous mergers have been about saving struggling airlines, previous legal and regulatory reviews have always focused on subtraction and what’s being lost,” — Scott Kirby, United CEO

The Hill

• “would be negative for competition and for consumers” — American Airlines (press release)

PBS News Hour

• “American [is] doing fine, and United is doing very well. I know the United people, they’re doing very well. I don’t like having them merge,” — Donald Trump, former President

The Hill

Sources differ on whether Kirby approached American before or after his Feb 25 meeting with the White House, leaving the outreach sequence unclear. No timeline for any formal regulatory review is provided.

The Hill