United Airlines CEO Scott Kirby said the company does not expect to pursue further airline consolidation after American Airlines declined to engage in merger discussions, according to remarks made at a Bernstein investor conference and reported by Reuters.
Kirby stated that only a major transaction with a willing partner would have made economic sense for United, but that option is no longer available. “So I don’t think that United at least is going to participate in any consolidation for any time I can see in the foreseeable future,” he said.
United confirmed in April that American Airlines had rejected the merger proposal, ending what would have been the largest US airline consolidation effort in more than a decade. The proposal was previously discussed with US President Donald Trump in late February.
Kirby dismissed speculation that United could pursue smaller deals, calling the idea “idiotic” and stating that such moves are “definitely not the plan.” He also rejected the possibility of a merger with JetBlue Airways, citing the need for a significant improvement in JetBlue’s margins, which he described as “mathematically close to impossible.”
The United CEO also commented on the outlook for ultra-low-cost carriers, predicting they will become “materially smaller” due to high airport costs and increased competition from larger airlines. He said these carriers are likely to retreat to leisure-focused routes where their business model remains viable.
American Airlines cited antitrust concerns as a key reason for declining United’s merger approach, arguing that a combination would be negative for competition and consumers. Regulatory challenges were also highlighted in industry reports, with analysts noting that a merger between United and American would have created a group operating more than 3,000 aircraft, raising significant competition issues.
Other recent merger attempts in the US airline sector have faced significant obstacles. JetBlue’s proposed acquisition of Spirit Airlines was blocked by a federal judge in early 2024, although Alaska Airlines ultimately secured approval to acquire Hawaiian Airlines.
The merger debate is unfolding against the backdrop of Spirit Airlines’ collapse earlier this month, a reminder that competitive pressures remain intense in parts of the US airline market.
