WASHINGTON/CHICAGO: United Airlines CEO Scott Kirby pitched the potential for merging with American Airlines in a meeting with U.S. President Donald Trump in late February, two sources said, raising the prospect of an industry-reshaping deal likely to face significant regulatory hurdles.
A combination of two of the largest U.S. network carriers would mark the biggest consolidation move in more than a decade, further tightening a domestic market already dominated by four similarly sized players.
Including international flights, United and American were already the world’s two largest airlines by available capacity in 2025, according to OAG data.
The meeting with Trump took place on February 25 toward the end of a scheduled White House meeting on the future of Dulles airport, said the sources with knowledge of the matter. That was three days before the start of the U.S.-Israeli war with Iran that sent jet fuel prices soaring and has led airlines to raise fares and fees to offset higher costs.
Kirby has argued to administration officials that a combined airline would be a stronger competitor in international markets and noted the Trump administration has focused on U.S. trade deficits around the globe, the sources said.
The United CEO 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 U.S. citizens.
Industry officials said the chances of the deal’s approval would be slim, citing likely opposition from unions, rival airlines, lawmakers and airports, as well as concerns about route overlap and job losses.
One person close to the White House said there was skepticism about such a tie-up, 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.
Antitrust lawyer Seth Bloom said the deal would be unlikely to clear regulatory hurdles, even under a Trump administration that has taken a more relaxed approach to enforcement.
“The administration has said it really cares about the issues that affect the consumer’s pocketbook, and this would give the airlines more pricing power,” Bloom said.
It was not clear whether United has made any formal approach to American or whether a process was underway. The sources spoke on condition of anonymity because the talks were not public.
United and American declined to comment. The White House did not 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
The U.S. airline industry is already highly concentrated, with American, Delta Air Lines, United and Southwest Airlines controlling the bulk of domestic traffic, each with a share of roughly 17%, according to Department of Transportation data.
U.S. Transportation Secretary Sean Duffy said this month that there was room for consolidation in the U.S. airline industry, but warned any deal would face close scrutiny for its impact on consumers.
Ganesh Sitaraman, director of the Vanderbilt Policy Accelerator and author of “Why Flying Is Miserable,” said a United-American merger would reduce competition.
“Fewer choices mean higher ticket prices, more fees, and fewer options for anyone who wants to get from point A to point B,” he said.
AMERICAN UNDER PRESSURE
American has been under pressure to improve profitability and close the gap with Delta and United, after unions earlier this year criticized management over lagging returns. The airline has pointed to strong premium demand and corporate travel to drive a 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 a turnaround at a time of high fuel costs.
American is the smallest of the big four U.S. airlines by market value, at about $7 billion, compared with roughly $31 billion for United, $19 billion for Southwest and $44 billion for Delta.
“We have been very open about our concerns regarding American’s financial, operational and customer service underperformance,” said Dennis Tajer, a spokesman for American’s pilots’ union.
United has struck a more confident tone as high fuel prices test the industry, with Kirby saying last month that a prolonged cost shock could create opportunities for stronger airlines to gain share as weaker rivals struggle.
Kirby previously served as American’s president from 2013 to 2016, but in the past he has played down the appeal of large acquisitions.
