American rejects merger talks with United Airlines
April 17 (Reuters) – American Airlines said on Friday it is not interested in a merger with United Airlines and has not had any such discussions, reducing the possibility of an industry-reshaping deal that would face tight regulatory scrutiny.
The combination of the two largest US network carriers would mark the biggest consolidation move in more than a decade and further tighten the domestic market already dominated by four similarly sized players. Including international flights, United and American were already the world’s two largest airlines in terms of available capacity in 2025, according to OAG data.
But analysts and industry officials said that scale would invite extraordinary scrutiny from regulators, labor unions and consumer advocates wary of higher wages and reduced competition, leaving the deal’s chances of approval slim.
There is also significant overlap between American and United, including major hubs in Chicago O’Hare and Texas.
“While changes in the broader airline market are necessary, a merger with United could be negative for competition and 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 stated that it has no idea about a possible United Airlines deal with American Airlines.
United Airlines CEO Scott Kirby raised the potential for a merger with American Airlines during 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 US-Israeli war with Iran; This war caused jet fuel prices to rise and led airlines to increase fees and charges to offset higher costs.
Kirby argued to administration officials that a combined airline would be a stronger competitor in international markets, citing the Trump administration’s focus on U.S. trade deficits around the world, sources said.
But a person close to the White House told Reuters there were skepticism about such a merger, 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.
(Reporting by Aditya Soni and Megavarshini G. Somasundaram in Bengaluru; Editing by Pooja Desai)
