United Airlines Holdings Inc. CEO Scott Kirby said on Tuesday that pursuing an acquisition of a small airline may not be worthwhile because of the substantial effort such a deal requires.
"Doing a merger takes a lot of calories and a lot of energy," Kirby said in an interview with the New York Times. "The hurdle is a whole lot higher for a small airline than it is for a big airline, for me."
Kirby's comments come after he earlier outlined reasons for considering a possible combination between United and American Airlines Group Inc. According to reporting earlier this month, he discussed the idea with President Donald Trump. That proposal encountered pushback across the industry and was explicitly rejected by American CEO Robert Isom.
The conversation around consolidation also generated speculation about other potential partners, including JetBlue Airways Corp. Kirby declined to answer questions about conjecture involving JetBlue.
United and JetBlue have an existing partnership that provides United with access to some gates at John F. Kennedy International Airport. United's primary New York-area hub is Newark.
The article's reporting noted financial strain at JetBlue: the carrier carries roughly $9 billion in total debt and has taken on additional borrowing to shore up liquidity. Analysts cited in the reporting expect JetBlue to record another loss this year.
Throughout the discussion Kirby reiterated what he described as a "big, bold vision" for a tie-up with American, arguing that such a combination would expand capacity, create jobs and deliver value to travelers.
While Kirby acknowledged the burdens of integrating a smaller carrier, he has continued to press a case for a larger-scale transaction with American. The idea has proven controversial within the industry and was not accepted by American's chief executive.
The remarks illustrate the competing considerations airline executives must weigh when assessing consolidation: the operational costs and executive attention required to fold in a smaller carrier versus the potential strategic benefits of a larger combination. The unfolding dialogue has left certain potential deal paths - including those involving JetBlue - unexplained by United's leadership, beyond an affirmation of partnership ties at key airports.