United Airlines CEO Scott Kirby suggested a potential merger with American Airlines during a meeting with Trump administration officials, two sources familiar with the discussion said.
The conversation, which took place on February 25 at the White House during a scheduled session on the future of Dulles International Airport, has drawn new attention after Transportation Secretary Sean Duffy signaled openness to more airline industry consolidation. Duffy cautioned, however, that any deal would face tough scrutiny to ensure it would not harm competition or raise passenger fares.
A combination of the two carriers would create the world’s largest airline by capacity and control nearly half the U.S. domestic market, according to industry data. Regulators and antitrust experts have expressed skepticism that such a tie-up could win approval.
Kirby has long argued that U.S. carriers need to strengthen their position against foreign competitors. In a September 2025 interview with CBS News, he noted that about two-thirds of long-haul international seats to and from the United States are operated by foreign-flag carriers, even though only 40% of passengers are foreign citizens.
“Figuring out how to close that trade deficit with international airlines is one of the things we’re got to spend the next few years working on and trying to do,” Kirby said, per CBS. “Figuring out how to create a great American airline that all Americans can be proud of that competes not just on schedules but on quality and product and service, is the mission for us, it’s not straightforward cause we’ve got to do it in a way that makes money, but that’s a goal that we have set for ourselves.”
The sources said Kirby told administration officials that a merged carrier would be better positioned internationally, aligning with the Trump administration’s focus on reducing U.S. trade deficits.
Industry officials described the chances of approval as slim, citing expected pushback from unions, rival airlines, lawmakers, and airports over route overlaps and possible job losses. Antitrust lawyer Seth Bloom said the deal would struggle to clear regulatory hurdles.
“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, Reuters reported.
American Airlines shares rose more than 5% in after-hours trading following the report, while United shares were little changed.
The U.S. airline industry is already highly concentrated, with American, Delta Air Lines, United, and Southwest Airlines each holding roughly 17% of domestic traffic, according to Department of Transportation data. Duffy said this month there is room for consolidation, but that any proposal would receive close review for its effect on consumers.
Vanderbilt Policy Accelerator director Ganesh Sitaraman, author of “Why Flying Is Miserable,” said a United-American merger would reduce choices.
“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, according to Reuters.
American Airlines has faced pressure to improve profitability and narrow the gap with Delta and United. The carrier carries about $25 billion in long-term debt, more than its larger rivals, limiting its flexibility amid high fuel costs. It is also the smallest of the four major U.S. airlines by market value.
Allied Pilots Association spokesman Capt. Dennis Tajer, whose union represents 16,000 American pilots, called the idea “certainly intriguing,” CBS reported.
“We have been very open about our concerns regarding American Airlines’ financial, operational, and customer service underperformance under the current management team,” Tajer said. “We are always interested in and welcome ideas that will turn around our airline.”
Atmosphere Research Group analyst Henry Harteveldt said the merger would require so many concessions that it might not make sense for United.
“United would have to agree to so many concessions that I’m unsure it would end up being worth it for United to buy American,” Harteveldt said, per CBS. “I think what Scott really wanted to do with his comment is indirectly put AA into play to see what, if anything, happens.”
Kirby has struck a confident note about high fuel prices testing weaker carriers. In a recent CBS News interview, he said prolonged high costs could create opportunities for stronger airlines.
“I think that’s going to create a lot of stress on airlines that came into the crisis, if it is a crisis, they came in weaker, and that are being less proactive, is going to put them in a tough situation,” he said. “So we’re looking at this as, you know, an opportunity for United to maybe acquire assets, come out stronger on the other side.”
When asked if those assets could include another airline, Kirby replied, “Well, those are both could well be the same. We’ll see.”
United is viewed as a possible buyer of JetBlue if market conditions force a sale, though Kirby has not directly addressed that prospect.
Kirby previously served as AA’s president from 2013 to 2016 but has downplayed the appeal of large acquisitions in the past. Any United-American combination would test antitrust limits and mark the biggest U.S. airline deal in more than a decade.