American Airlines rejects merger with United, says no talks held

American Airlines said on Friday it has no interest in merging with United Airlines and confirmed that no discussions on such a deal have taken place, effectively dampening speculation about a potential industry-altering consolidation.

A merger between the two major US network carriers would represent the most significant consolidation in more than a decade, further concentrating a domestic aviation market already dominated by four major players of comparable size. On a global scale, including international operations, United and American ranked as the world’s two largest airlines by available capacity in 2025, according to OAG data, cited by Reuters.

Despite the scale such a combination would create, analysts and industry officials have warned that it would face intense scrutiny from regulators, labour unions, and consumer advocacy groups. Concerns would likely centre on reduced competition and the potential for higher fares, leaving the prospects for regulatory approval slim.

Operational overlap between the two airlines is also substantial, particularly at key hubs such as Chicago O’Hare, as well as across major markets in Texas, which could further complicate any merger review.

“While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers,” American Airlines said, adding that such a deal would not align with its understanding of the Trump administration’s approach to antitrust enforcement.

United Airlines declined to comment on the matter, while the White House did not immediately respond to requests for comment. The White House has previously indicated it does not hold a formal position on a potential deal involving the two carriers.

The issue gained attention after United Airlines CEO Scott Kirby raised the possibility of a merger during a meeting with US President Donald Trump in late February, according to earlier reports. The meeting took place just days before the outbreak of the US-Israeli war with Iran, which triggered a surge in jet fuel prices and prompted airlines to increase fares and fees to offset rising costs.

Kirby reportedly argued that a combined airline would be better positioned to compete in international markets and aligned with the administration’s focus on addressing US trade imbalances. However, scepticism remains within the administration. One source familiar with White House thinking noted concerns about the impact such a merger could have on competition and ticket prices, particularly at a time when rising consumer costs are a key political issue ahead of the November midterm elections.

By Tamilla Hasanova