United Airlines is unlikely to pursue a major merger after its overture to American Airlines was rejected, according to CEO Scott Kirby. Despite previously exploring a merger idea, Kirby said the prospect of consolidation is slim without a willing partner from American’s management team.
Kirby emphasized that while a deep merger is off the table, United remains interested in acquiring valuable assets such as airport slots and gates, especially if elevated fuel prices weaken smaller rivals. He noted that higher fares driven by rising fuel costs are expected to allow the airline to recover its full losses from surging fuel expenses later this year, reflecting sustained demand despite ticket price increases.
Kirby defended the proposed merger’s rationale, suggesting it would have benefited consumers by increasing efficiency and strengthening the airline’s position. However, he acknowledged that American Airlines’ leadership publicly opposed the deal on grounds of anti-competitiveness, which made the transaction unfeasible. He also denied reports that United discussed granting the U.S. government a “golden share” as part of any merger plan.
The CEO framed the current market dynamics as a divide between large carriers with strong brands, like United and Delta, and weaker competitors largely reliant on price competition. He rejected criticism from the International Air Transport Association’s director general that dominant U.S. carriers are limiting competition, stating that customer loyalty is driven by investment in technology, service, and product quality.