TLDR
- United Airlines CEO Scott Kirby confirmed he approached American Airlines about a potential merger
- American Airlines rejected the idea, with CEO Robert Isom calling it “anticompetitive”
- President Trump also said he opposed the merger
- United cut its full-year profit guidance to $7–$11 per share
- UAL stock is down 17% year-to-date; AAL is down more than 20%
United Airlines CEO Scott Kirby officially confirmed Monday that he approached American Airlines about a potential merger — and that American said no.
United Airlines Holdings, Inc., UAL
Kirby said he reached out because he believed a combined airline could compete more effectively against foreign carriers, which currently fly more than half of all long-haul seats into the U.S.
“I approached American about exploring a combination because I thought we could do something incredible for customers together,” Kirby said in a statement.
He added that he had shared his vision with the Trump administration earlier this year, hoping the case for a stronger U.S. global airline would carry weight with regulators.
But American’s CEO Robert Isom was not on board. On a post-earnings call last Thursday, Isom told investors the idea of the two largest U.S. airlines combining was “anticompetitive,” adding that everyone who had weighed in felt the same way.
President Trump backed that view. Speaking on CNBC’s “Squawk Box” last week, he said plainly: “I don’t like having them merge.”
Kirby Closes the Door
With opposition from both American and the White House, Kirby acknowledged the deal is dead — at least for now.
“American’s public comments make it clear that a merger like this is off the table for the foreseeable future,” he said Monday.
He noted that without a willing partner, a deal of this scale simply cannot move forward.
American did not respond to requests for comment on Kirby’s Monday statement.
Guidance Cuts Weigh on Both Stocks
The merger news comes as both carriers are dealing with weaker earnings outlooks.
United slashed its full-year profit guidance last week, now forecasting earnings of $7 to $11 per share. Higher jet fuel prices, driven by crude oil surging tied to the U.S.-Iran conflict, were cited as a key factor.
American also cut its full-year guidance, now expecting a loss of up to 40 cents per share — similar to the loss it posted in Q1.
UAL stock edged up 0.1% to $93.10 in early Monday trading, but remains down 17% year-to-date.
AAL was up around 0.3% to $12.14, though it’s still down more than 20% since January.
Kirby said he still believes a combined United and American would have passed regulatory scrutiny, pointing to the benefits for customers and communities. Divestitures in some domestic markets would have been required, he acknowledged.
For now, both airlines move forward separately — with tighter profit outlooks and no merger on the horizon.
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