Trump Administration Allegedly Pitched Idea Of Merging Two U.S.-Based Airlines

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United Airlines CEO Scott Kirby floated the idea of a merger with American Airlines in a meeting with President Trump earlier this year, Reuters claimed.

“The CEO of United Airlines is privately pitching some kind of merger with American Airlines, including to members of the Trump administration,” Bloomberg correspondent Josh Wingrove wrote.

Reuters has more:

A combination of two of the largest U.S. network carriers would mark by far the most consequential consolidation since the last wave of big airline mergers ended more than a decade ago and further tighten a U.S. domestic market already dominated by four players of roughly equal size.

Including international flights, United and American were already the world’s two largest airlines by available capacity in 2025, according to OAG data, and their combined size would far eclipse rival Delta Air Lines, which ranked third.

The meeting with Trump was on February 25, said the sources with knowledge of the matter, three days before the start of the U.S.-Israeli war with Iran that sent jet fuel prices skyrocketing and airlines scrambling to recover higher costs through fare rises and bag fee increases.

Kirby has made the case to Trump administration officials that a merged United-American would be a stronger competitor for international travel, the sources said, noting that the Trump administration has focused on U.S. trade deficits around the globe. Kirby said at a forum in September that two-thirds of long-haul seats to and from the United States are on foreign carriers, but 60% of passengers are U.S. citizens.

A merger of this magnitude would likely be extremely difficult to implement, considering the failed Spirit-JetBlue proposal.

Transportation Secretary Sean Duffy was recently asked about the possibility of a merger among U.S.-based airlines.

Watch below:

Fortune shared further:

For Kirby, a deal involving American Airlines would also be personal. Kirby was previously president of American, but left after it was made clear he didn’t have a path to becoming the carrier’s CEO. Kirby joined United as president in 2016 before rising to the top job.

The two companies have engaged in a continuous exchange of strategic one-upmanship, particularly at Chicago’s O’Hare International Airport, where they’ve battled over gate access and market share.

Kirby has also faulted American Airlines for being too late and too slow to add more premium products, which have proven popular and lucrative at United and Delta Air Lines Inc.

The United CEO’s considerations come as airlines are grappling with higher jet fuel prices due to the US-Iran war and the effective closure of the Strait of Hormuz, a key passageway for oil transports. Kirby has already responded by taking some capacity out of the market, saying he wants to be prepared for potential cost increases.

US airline mergers have to be reviewed and approved by the Transportation Department, as well as the Department of Justice. Transportation Secretary Sean Duffy said the government would look at a number of factors when considering potential tie-ups, including the impact on competition — both domestically and globally — and ticket prices.



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