By David Shepardson and Rajesh Kumar Singh
WASHINGTON/CHICAGO, April 13 (Reuters) – United Airlines CEO Scott Kirby raised the potential for a merger with American Airlines during a nFWN40W13A meeting with U.S. President Donald Trump in late February.
The combination of the two largest U.S. network carriers would mark by far the most significant consolidation since the last wave of major airline mergers ended more than a decade ago, further tightening the U.S. domestic market currently 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 would far dwarf third-place rival Delta Air Lines.
Sources with knowledge of the matter said the meeting with Trump took place on February 25, three days before the start of the US-Israeli war with Iran, which caused jet fuel prices to soar and airlines scrambled to cover higher costs through fare increases and baggage fees.
Sources said Kirby argued to Trump administration officials that a united United States would be a stronger competitor for international travel, noting that the Trump administration is focusing on U.S. trade deficits around the world. Two-thirds of long-haul seats to and from the U.S. are on foreign carriers, but 60 percent of passengers are U.S. citizens, Kirby said at a forum in September.
His comments about a potential merger came toward the end of a planned White House meeting on the future of Dulles airport https://www.reuters.com/world/us/us-advancing-discussions-how-rebuild-washington-dulles-airport-2026-03-09/, the sources added.
Industry officials told Reuters privately that the chances of approval of the merger would be extremely difficult, citing possible opposition from unions, rival airlines, MPs and airports, as well as impacts on routes, major hubs and employees.
A person close to the White House said there were doubts about a possible merger, citing the impact on competition and ticket prices at a time when the Trump administration is worried about rising jet fuel prices ahead of midterm elections in November.
It is unclear whether United has made a formal approach to America or whether a process for a deal is ongoing. The sources spoke 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 requests for comment.
American shares rose more than 5% in after-hours trading following the report, while United shares were little changed.
HIGHLY CONCENTRATED MARKET
According to Department of Transportation data, the American airline industry is already highly concentrated; American, Delta, United and Southwest Airlines control the bulk of domestic traffic, accounting for about 17% each.
American is outperforming its rivals financially, but any deal would test antitrust limits after regulators successfully blocked JetBlue Airways’ planned 2024 acquisition of much smaller Spirit Airlines.
It could also reshape competition in major hubs like Chicago and Dallas at a time when rising fuel costs are widening the gap between strong and weak airlines.
U.S. Transportation Secretary Sean Duffy said this month he thought there was room for nL1N40Q0S5 consolidation in the U.S. airline industry, but any potential deal would face close scrutiny over how it would affect consumers.
American is under pressure to improve its profitability and close the gap with Delta and United https://www.reuters.com/business/americans-chicago-showdown-with-united-airlines-becomes-key-test-turnaround-2026-02-05/ after unions criticized management earlier this year. https://www.reuters.com/business/world-at-work/american-airlines-unions-ratchet-up-pression-board-over-lagging-profit-2026-02-12/ lagged returns. The airline noted strong premium demand and corporate travel to support the recovery in 2026.
The Texas-based airline also carries about $25 billion in long-term debt; That’s more than its larger rivals, leaving it with less financial flexibility as it tries to recover at a time of high jet fuel prices.
American is by far the smallest of the four major US airlines in terms of value; With a market cap of $7 billion, United has $31 billion, Southwest has $19 billion, and Delta has $44 billion.
United, by contrast, struck a more confident tone at a time when high fuel prices were testing the industry; Kirby said last month that a prolonged cost shock could create opportunities for stronger airlines to gain share while weaker rivals struggle.
Kirby previously served as America’s president from 2013 to 2016 and has downplayed the appeal of big acquisitions in the past. “But the headache, the brain damage, of buying an entire airline to get there. There’s a lot to be done,” he said last year when asked about potential deals.
(Reporting by David Shepardson in Washington and Rajesh Kumar Singh in Chicago and Natalia Bueno Rebolledo in Mexico City; Editing by Maju Samuel and Jamie Freed)
