American Airlines and United Airlines close to a merger
The two airlines would create a giant with $100 billion in sales and a fleet of 2,800 aircraft
by Mara Monti
The possibility of a merger between two of the three most important American airlines is becoming increasingly likely. Scott Kirby, CEO of United Airlines, has reportedly floated the idea of a possible merger with American Airlines, presenting the idea at the end of February to US President Donald Trump for a potential merger between the two airlines, according to American media.
The market believed in it and American Airlines shares rose as much as 9%, while United Airlines shares gained 4.26%. Other airlines were also positive from Delta Air Lines +3.23%, JetBlue Airways jumped 9%, Alaska Air rose 7%, Southwest added 6%. United and American are among the top four US airlines and together control over a third of the market. A merger between them would create the world's largest airline and consequently, any merger between the two aviation giants would raise serious antitrust issues and would likely meet with a strong negative consumer backlash due to the dominant positions that would be created, higher ticket prices, and less choice.
For Kirby, a deal involving American Airlines would also have personal significance. Kirby was previously president of American, but left the post after it became clear that he had no chance of becoming ceo of the company. Kirby joined United as president in 2016 before being appointed ceo.
The union of the two companies would create an aviation giant with over $100 billion in revenues and a fleet of over 2,800 aircraft. But there would also be significant hub overlap in the US. The merger hypothesis comes as airlines are grappling with soaring aviation fuel prices due to the US-Iran war and the effective closure of the Strait of Hormuz, a key passage for oil transportation. Due to rising fuel prices, United has already reduced capacity without ruling out an increase in ticket prices.
United has a market capitalisation of about USD 31 billion, compared to only USD 7.4 billion for American. The stock has lost 15% of its value since January, but American has performed worse, losing 27% since the beginning of 2026.
