United boss concedes merger with American Airlines will not fly

The boss of United Airlines has accused rival American Airlines of “closing the door” on merger talks.

 

United chief executive Scott Kirby disclosed that he approached American ”about exploring a combination because I thought we could do something incredible for customers together”.

 

But American’s public comments “make it clear that a merger like this is off the table for the foreseeable future,” he admitted. 

 

In a statement released on Monday, Kirby said: “I always knew that the only way any merger could be successful and approved is if it was great for customers and with a willing partner that shared my big, bold vision.

 

“I was confident that this combination, which would have been about adding and not subtracting, creating a truly great airline that customers love, could get regulatory approval. 

 

“I was hoping to pitch that story to American, but they declined to engage and instead responded by publicly closing the door. And without a willing partner, something this big simply can’t get done.”

 

Kirby’s vision was to create a “truly globally competitive" US-based airline.  

 

He said: “Today, there’s a big trade deficit with foreign flagged airlines – they fly about 65% of the long-haul seats into our country even though only 40% of the customers are foreign citizens – and the combined scale of United and American would be a better way to compete with foreign carriers.

 

“A larger US global airline would deliver US jobs and economic opportunities.  This US airline would set the standard for the next century just like US airlines used to in the first century of passenger flight. And this would be a great US airline that is the best, whether you’re a customer from Chicago, Des Moines or Dubai.”

 

He argued that a combined airline “would have been about growth – especially internationally and with expanded service to smaller communities – both of which are mathematically enabled by having a larger network”.

 

Kirby admitted: “I recognised from the beginning that a merger this big in our industry would attract a lot of skepticism in the media, including from some government officials.

 

“Since previous mergers have been about saving struggling airlines, previous legal and regulatory reviews have always focused on subtraction and what’s being lost.

 

“But a different kind of merger proposal – one that’s focused on growth, customer investments and global competitiveness – would have been a different proposition altogether.

 

“And, while divestitures in certain domestic markets obviously would have been required, I believe regulators would have approved such a deal because they would have recognised the benefits to customers, our shared employees and communities from coast-to-coast and around the world.

 

“While our pursuit of talks with American have ended, our mission to build the greatest airline in the history of aviation at United is well underway.”

 

American reported a first quarter pre-tax loss of $327 million on Friday as it achieved record revenue of $13.9 billion.

 

Chief executive Robert Isom said: “Even in a volatile operating environment, our pre-tax margin improved by nearly two points year over year, and we still anticipate modest profitability for the year assuming the current forward fuel curve.

 

“Demand for our product is growing, and our customer satisfaction scores are improving. We have built a strong foundation to deliver value for our customers, team members and shareholders in 2026 and beyond.”