United Airlines CEO Scott Kirby proposed a potential airline merger to the Trump administration earlier this year and has been reportedly exploring a possible deal since last fall.
In February, Kirby suggested to the White House the possibility of a partnership with American Airlines. It is unclear how Trump responded to Kirby’s proposal.
Critics quickly warned that such a deal could also harm passengers, while airline analysts cautioned that the regulatory obstacles might be too high to overcome.
The reported claim aligns with Kirby’s statement that the next focus for U.S. carriers is figuring out how to improve their global competitiveness.
“We have customers that fly United almost all the time or they fly Delta, but when they go to the Middle East, it’s fragmented enough that they fly on Emirates,” he said. “If we’re bigger and have more offerings for those customers, possibly, it makes it more rational for them to fly us when they go to the Middle East,” he told the Stratechery podcast.
United now partners with Emirates, American has a partnership with Qatar Airways, and Delta entered a strategic alliance with Saudi Arabia’s Riyadh Air in 2024.
Sean Duffy, the US transport secretary told reporters last week, “If there was a merger between some of the larger airlines, they would have to peel off some of their assets. Who knows who is going to match up? Is there room for some mergers in the aviation industry? Yeah, I think there is.”
American, United, Delta Air Lines, and Southwest Airlines hold approximately 80% of the domestic market share.
United shares rose 3% in premarket trading, while American Airlines increased nearly 9% following the release of rumors about the merger.
By CEO NA Editorial Staff
