- United Airlines Says Major Merger Unlikely After Failed American Approach
United Airlines is unlikely to pursue a major merger after American Airlines rejected an earlier approach, but the carrier remains open to buying airport slots, gates and other assets from rivals under financial pressure, Chief Executive Scott Kirby has said.
Speaking to Reuters on the sidelines of the International Air Transport Association’s annual meeting in Rio de Janeiro, Mr Kirby said major consolidation was now a low-probability outcome for United, even though the airline would remain alert to opportunities created by rising fuel costs and weaker competitors.
“I think consolidation is unlikely for United,” Mr Kirby said. “That doesn’t mean we won’t still be in the market to buy assets, but consolidation is a low probability.”
The comments come after Mr Kirby disclosed in April that American Airlines had declined to engage after he approached the company about a possible merger. Reuters reported that the idea had also been raised with United States President Donald Trump in February.
American Airlines Chief Executive Robert Isom rejected the idea, describing a tie-up as anti-competitive and bad for customers.
Mr Kirby defended the logic of the proposed merger, saying he believed it could have benefited consumers. But he acknowledged that a transaction of that scale and complexity would require American’s management to support the process.
“You can’t have the management team on record publicly saying it was anti-competitive,” he said.
Asked whether United had abandoned the idea permanently or could return to it in future, Mr Kirby repeatedly said any deal would require “a willing partner”.
He also denied that United had discussed giving the US government a golden share as part of any merger proposal.
The remarks mark a shift in United’s posture from full-scale consolidation to opportunistic asset acquisition.
That distinction matters. Buying airport slots, gates or other operational assets would allow United to strengthen its network without attempting a politically sensitive merger that could face regulatory scrutiny, labour concerns and customer backlash.
The possibility of asset purchases is becoming more relevant as higher fuel prices put pressure on airline margins.
According to Reuters, several airline executives say the fuel shock is widening the divide between stronger carriers with loyal customers and weaker airlines that still compete largely on price.
Mr Kirby said United expects higher fares to help it recover the full impact of rising fuel costs later this year. He said demand has remained strong, although the airline expects higher ticket prices to eventually affect some travel behaviour.
For now, United appears confident that its brand strength, route network and product investments will help it withstand the fuel shock better than weaker competitors.
Mr Kirby rejected criticism from Willie Walsh, head of the International Air Transport Association, that large US carriers are squeezing out competition.
He argued that United and Delta Air Lines are outperforming because they have invested in products and services customers value.
“Customers care about the technology, the service, the reliability, the product,” Mr Kirby said. “They want a great experience. They don’t just want a seat.”
That view reflects a broader transformation in the airline industry, where large carriers are increasingly competing not only on fares, but on loyalty programmes, digital tools, premium cabins, operational reliability and customer experience.
Mr Kirby said United’s advantage is not simply its balance sheet, but its operating profit, which allows the airline to keep investing while some rivals of similar size are only breaking even.
The United chief was also asked whether JetBlue Airways would become more attractive to United if it entered Chapter 11 financial restructuring.
He said he believed such a scenario was unlikely, citing JetBlue’s cash position and unencumbered assets.
He also dismissed fuel hedging as a lasting solution to volatile energy costs, arguing that it is “ineffective if you lose money over time”.
While acknowledging that Delta’s refinery is helping it in the current environment, Mr Kirby said United has no interest in buying a refinery of its own.
For the airline industry, his comments underline a difficult operating environment.
Fuel prices are again testing margins, customers are facing higher fares, and weaker airlines may come under pressure if they lack pricing power or loyal customer bases.
But for United, the message is clear: the carrier is not preparing for another major merger battle.
Instead, it is positioning itself to take advantage of market stress by buying strategic assets that strengthen its network without the political and regulatory complications of a full-scale consolidation deal.
In practical terms, that could mean airport access, gates, slots or other operational assets that become available if weaker carriers are forced to restructure or shrink.
The failed American approach may have closed the door on one of the most dramatic potential mergers in US aviation. But it has not ended United’s appetite for growth.
It has simply narrowed the target from buying a rival to buying the pieces that matter most.
