By David Shepardson and Rajesh Kumar Singh
WASHINGTON/CHICAGO, April 13 (Reuters) – United Airlines CEO Scott Kirby said in a meeting with U.S. President Donald Trump that there is a possibility of a merger with American Airlines in nFWN40W13A https://www.reuters.com/world/us/donald-trump/ In late February, two sources said the potential deal could be a significant deal with the industry. investigation
The combination of the two largest U.S. network carriers would mark the most consequential consolidation since the last wave of major airline mergers ended more than a decade ago and would further tighten a U.S. domestic market dominated by four players of roughly equal size.
Including international flights, United and American were already the world’s two largest airlines by available capacity in 2025, according to OAG data, and their combined size will eclipse rival Delta Air Lines in third place.
The meeting with Trump took place on February 25, sources familiar with the matter said, three days before the start of the US-Israeli war with Iran, which sent jet fuel prices skyrocketing and airlines scrambling to recover higher costs through fare hikes and bag fee hikes.
Kirby has made the case to Trump administration officials that a merged United-American would be a strong competitor for international travel, the sources said, adding that the Trump administration has focused on the U.S. trade deficit around the world. Kirby said at a forum in September that two-thirds of long-haul seats to and from the United States are on foreign carriers, but 60% of passengers are American citizens.
His comments about the potential alliance came near the end of a scheduled White House meeting https://www.reuters.com/world/us/us-advancing-discussions-how-rebuild-washington-dulles-airport-2026-03-09/ on the future of Dulles Airport, the sources added.
Citing opposition from unions, rival airlines, lawmakers and the potential impact on airports and routes, major hubs and employees, industry officials told Reuters privately that the chances of getting merger approval would be extremely difficult.
A person close to the White House said he was skeptical of a potential alliance, citing the impact on competition and ticket prices at a time when the Trump administration is concerned about raising jet fuel prices ahead of November’s midterm elections.
It’s not clear whether United has any formal approaches with American or whether the process is underway to pursue a deal. The source said on condition of anonymity because the talks were not public.
United and American declined to comment on the potential combination, which was first reported by Bloomberg. The White House did not immediately respond to a request for comment.
U.S. shares rose more than 5% in after-hours trading after the report, while United shares were little changed.
Highly concentrated market
The U.S. airline industry is already highly concentrated, with American, Delta, United and Southwest Airlines controlling the bulk of domestic traffic, each accounting for about 17%, according to Transportation Department figures.
American has been lagging its rivals financially, but any deal will test antitrust limits after regulators successfully blocked a planned much smaller takeover of Spirit Airlines in 2024.
That could reshape competition in major hubs like Chicago and Dallas when the gap between strong and weak airlines widens as fuel costs rise.
US Transportation Secretary Sean Duffy said this month that he thought there was room for consolidation in the US airline industry, but said any potential deal would face close scrutiny of how it would affect consumers.
American is under pressure to improve profits https://www.reuters.com/business/americans-chicago-showdown-with-united-airlines-becomes-key-test-turnaround-2026-02-05/ and close the gap with Delta and United, after unions criticized management earlier this year. https://www.reuters.com/business/world-at-work/american-airlines-unions-ratchet-up-pressure-board-over-lagging-profit-2026-02-12/ Over lagging returns. Airlines point to strong premium demand and corporate travel to drive recovery in 2026.
The Texas-based carrier also carries about $25 billion in long-term debt, more than its larger rivals, leaving it with less financial flexibility as it works through changes during times of high jet fuel prices.
American is the smallest of the Big Four U.S. airlines by value, with a market capitalization of $7 billion, compared to $31 billion for United, $19 billion for Southwest and $44 billion for Delta.
United, by contrast, has struck a more confident tone as higher fuel prices test the industry, with Kirby saying last month that prolonged cost shocks could create opportunities https://www.reuters.com/business/us-airlines-face-fuel-driven-financial-shakeout-2026-03-30/ for weak share lines for strong share lines.
Kirby previously served as US president from 2013 to 2016 and has downplayed the appeal of big acquisitions in the past. “But man, all the headaches, all the brain damage of buying an entire airline to get there. It’s a lot to do,” he said last year when asked about potential deals.
(Reporting by David Shepardson in Washington and Rajesh Kumar Singh in Chicago and Natalia Bueno Riboledo in Mexico City; Editing by Mazu Samuel and Jamie Freed)
