MW United Airlines reportedly pitched government on American Airlines deal. Its CEO wants to take advantage of high oil prices.
By Steve Goldstein
United Airlines CEO Scott Kirby speaks with reporters during a March media event in Los Angeles.
United Airlines has reportedly pitched federal government officials on whether it could get permission to merge with American Airlines, a transaction that, if completed, would have the combined carrier controlling a significant share of the U.S. market.
Reuters reported United CEO Scott Kirby floated the idea in a meeting with President Donald Trump. Bloomberg carried a similar report, with both reports citing unnamed officials.
The Reuters report said the White House viewed the proposal skeptically, given the potential for higher airfares amid already elevated inflation.
United declined to comment. American Airlines has been contacted for comment.
American Airlines shares $(AAL)$ rallied 9% as those of United $(UAL)$ rose 3% in premarket trade.
In a memo the company publicly released last month, Kirby noted that United and Delta $(DAL)$ represented 100% of total U.S. industry profitability last year, which means higher oil prices put more stress on its rivals. "We have the time and the luxury to ride this out and stay focused on the long term," he said. Kirby added that United has three times the cash it did when the COVID-19 pandemic started.
He said the airline was prepared to withstand oil prices climbing as high as $175 per barrel and not returning below $100 until the end of 2027.
"I listened to most of our competitors at the J.P. Morgan conference this week and many said some version of 'hope is our strategy.' It's possible they're right and that the war ends quickly. But if it doesn't, this will be our opportunity down the road to buy assets, absorb network changes, etc.," he said in the memo.
Last year, American Airlines earned just $111 million on $54.63 billion in revenue, and this year analysts expect the airline to lose $147 million, according to FactSet. United last year earned $3.35 billion on $59.1 billion in revenue. Analysts expect the airline to earn $3.11 billion this year.
The American Airlines net debt-to-EBITDA ratio was 6.23, compared with 1.61 for United, according to FactSet.
By seat capacity, American was the No. 1 airline last year. United was fourth, according to OAG, a travel data provider.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 14, 2026 08:54 ET (12:54 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments