Kirby pitched the idea to senior government officials, though it’s unclear if any overtures have since been made or if an actual process is underway to explore a deal, according to the people, who asked not to be identified because the conversations are private.
The CEO raised the idea directly to President
A spokesman for United Airlines declined to comment, as did representatives for American Airlines. Shares of American rose 7.6% at the open in US trading, while United Airlines gained 1.5%.
United and American are among the top four US carriers, together controlling more than a third of the market. A combination would create the largest airline on the planet. As a result, any merger between the two aviation giants would pose serious antitrust concerns and likely face significant backlash from consumers, politicians and rival US airlines.
A potential United-American merger “would be an absolute disaster for the flying public,” said Vanderbilt Law School Professor Ganesh Sitaraman, because such a tie-up would lead to higher fares and fewer options for travelers.
“Even the most permissive antitrust regulator should put their foot down at such a blatantly anticompetitive merger,” Sitaraman said.
The deliberations come as recent market upheaval has brought the possibility of consolidation to the fore. Kirby told employees in a memo last month that the carrier would benefit from any shakeout in the industry as part of rising oil and fuel prices, potentially providing purchase opportunities.
“We’ll be there to pick up some of those assets, might be a win-win for them,” Kirby said in a
For Kirby, a deal involving American Airlines would also be personal. Kirby was previously president of American, but left after it was made clear he didn’t have a path to becoming the carrier’s CEO. Kirby joined United as president in 2016 before rising to the top job.
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The two companies have engaged in a continuous exchange of strategic one-upmanship, particularly at Chicago’s O’Hare International Airport, where they’ve battled over gate access and market share.
Kirby has also faulted American Airlines for being too late and too slow to add more premium products, which have proven popular and lucrative at United and
Combining forces would create an aviation behemoth with more than $100 billion in revenue and a fleet of more than 2,800 aircraft. But there’d also be significant overlap in hubs across the US, likely leading to fierce opposition from smaller rivals feeling squeezed out of the market.
The United CEO’s considerations come as airlines are grappling with higher jet fuel prices due to the US-Iran war and the effective closure of the Strait of Hormuz, a key passageway for oil transports. Kirby has already responded by taking some capacity out of the market, saying he wants to be prepared for potential cost increases.
US airline mergers have to be reviewed and approved by the Transportation Department, as well as the
“President Trump, he loves to see big deals happen,” Duffy told CNBC on April 7. “Is there room for some mergers in the aviation industry? Yeah, I think there is,” he said.
However, Duffy added that he wouldn’t “pre-commit to anything.”
He also said if there is a merger between two larger airlines, they’ll have to “peel off” some of their assets because the US doesn’t want to see one carrier with too much market share, which could drive up consumer prices.
United has a market value of about $31 billion, compared with just $7.4 billion for American. United’s stock has lost 15% in value this year, though American has fared worse, losing 27% since the start of 2026.
With Fort Worth, Texas-based American, United would gain access to the largest US domestic network — and scuttle the simmering turf war between the carriers in Chicago.
But it would also come as American is navigating a slate of operational and strategic challenges, from cutting about $35 billion in debt to trying to win back corporate flyers alienated by an unpopular — and since reversed — marketing strategy. American Chief Executive Officer
The US airline industry as it exists today was built largely through consolidation, including Delta and Northwest Airlines, United and Continental, and American and US Airways.
Still, the industry’s history is lined with stalled deals.
In January 2025, United
(Updates with details on White House meeting in third paragraph, comment in sixth paragraph.)
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