April 14 - Shares of United Airlines and American Airlines moved higher in premarket trading on Tuesday following reports that United CEO Scott Kirby had raised the notion of a merger between the two largest U.S. carriers with U.S. President Donald Trump earlier this year.
According to sources, Kirby brought up the potential combination during a February 25 White House meeting that was centered on the future of Dulles airport outside Washington. Market reaction was notable: American’s stock climbed roughly 4% while United’s rose about 2% in early trading.
Those gains come after both carriers have suffered recent declines tied to higher jet fuel costs. The report noted that since late February, when the U.S.-Israeli war with Iran intensified and pushed jet fuel prices markedly higher, American’s shares have dropped about 14.1% and United’s have fallen about 10.4%.
In presenting the merger idea, Kirby reportedly argued that a combined carrier could be better positioned to compete on international routes, where foreign airlines account for the majority of long-haul seat capacity to and from the United States despite most passengers being U.S. citizens.
Industry participants and antitrust specialists cautioned that any such deal would face steep obstacles. They identified several concerns that regulators would factor into a review: potential reductions in competition, the prospect of higher fares for travelers, job losses, and extensive route overlap between the carriers in an industry already concentrated among four major U.S. airlines.
Both United and American declined to comment on the matter, and the White House did not respond to requests for comment.
Market context and implications
The public response in equity markets was immediate but measured, reflecting investor attention to both merger speculation and near-term operational pressures. The recent slide in both airlines’ stock prices linked to rising jet fuel costs remains a relevant backdrop to any strategic discussions between the carriers.
What remains unclear
The reports do not indicate any formal discussions beyond the February meeting, nor do they provide details on any steps toward a transaction. Sources described the exchange as Kirby raising the idea; there is no public indication from either carrier or from the White House that talks have progressed.