American Airlines pours cold water on talk of United merger
Speculation about a merger between Fort Worth-based American Airlines and Chicago-based United Airlines can be put to rest — at least according to one of the parties involved.
On Friday evening, American issued a statement addressing the merger rumors, saying the airline isn’t considering joining forces with its competitor.
“American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” the statement read.
Earlier in the week, Reuters reported that United Airlines CEO Scott Kirby had floated the merger idea during a meeting with President Donald Trump in February.
American is the second-largest airline in the U.S. by market share behind Delta Airlines, and United is fourth behind Dallas-based Southwest Airlines, though there’s a relatively small gap between first and fourth place. But American ranks far behind Delta and United in terms of profitability.
A United spokesperson declined to comment when asked about Kirby’s pitch to the president. Any potential merger likely would have met antitrust opposition.
Still, during an April 7 interview with CNBC, U.S. Transportation Secretary Sean Duffy wouldn’t rule out the possibility of an airline merger when asked if it could happen. A merger would be subject to regulatory approval, but Duffy said the president “loves to see big deals happen.”
American’s statement Friday went on to say that a merger with United would hurt competition and negatively affect customers.
“Our focus will remain on executing on our strategic objectives and positioning American to win for the long term,” the statement read.