Key Takeaways
- Scott Kirby, United Airlines CEO, publicly acknowledged his merger proposal to American Airlines
- Robert Isom, American Airlines CEO, dismissed the proposal as “anticompetitive”
- President Trump expressed opposition to the airline combination
- United revised its annual profit forecast downward to $7–$11 per share
- UAL shares have declined 17% this year; AAL shares have fallen over 20%
Scott Kirby, CEO of United Airlines, publicly acknowledged on Monday that he initiated merger discussions with American Airlines — discussions that ultimately went nowhere.
United Airlines Holdings, Inc., UAL
Kirby explained his rationale centered on creating a stronger entity capable of better competing against international carriers, which currently operate more than half of all long-distance flights coming into the United States.
“I approached American about exploring a combination because I thought we could do something incredible for customers together,” Kirby stated.
He mentioned presenting his strategic vision to the Trump administration earlier in the year, anticipating that the argument for a more competitive U.S. global airline would resonate with regulatory officials.
Robert Isom, CEO of American Airlines, rejected the overture. During an earnings call last Thursday, Isom characterized the concept of merging the nation’s two largest airlines as “anticompetitive,” noting widespread agreement with his assessment.
President Trump reinforced this position. During an appearance on CNBC’s “Squawk Box” last week, he stated directly: “I don’t like having them merge.”
Kirby Accepts the Reality
Facing resistance from both American leadership and the administration, Kirby conceded the proposal has no path forward in the current environment.
“American’s public comments make it clear that a merger like this is off the table for the foreseeable future,” he remarked Monday.
He emphasized that without a cooperative counterpart, a transaction of this magnitude cannot proceed.
American Airlines declined to provide comment regarding Kirby’s Monday announcement.
Profit Forecasts Drop for Both Carriers
The failed merger attempt surfaces during a challenging period for both airlines’ financial performance.
United lowered its annual profit projection last week to a range of $7 to $11 per share. Rising jet fuel costs, linked to crude oil price increases stemming from U.S.-Iran tensions, were identified as a primary driver.
American similarly reduced its annual outlook, now projecting a loss reaching 40 cents per share — comparable to its first-quarter results.
UAL shares rose 0.1% to $93.10 during early Monday trading hours, though the stock has declined 17% since the start of the year.
AAL increased approximately 0.3% to $12.14, while remaining down more than 20% from January levels.
Kirby maintained his belief that a United-American combination would have gained regulatory approval, citing advantages for travelers and local markets. He acknowledged that asset sales in certain domestic markets would have been necessary.
Both airlines continue operating independently — confronting tighter profit expectations with no consolidation prospects in sight.
