American Airlines CEO States United Merger Would Harm Consumers

American Airlines CEO Robert Isom told CNBC that a potential merger with rival United Airlines would be anti-competitive and harmful to consumers. Isom made the comments on Thursday following the company's first-quarter results report. He described the idea as a non-starter and said it would ultimately be bad for American Airlines and its employees.

floated the idea of a merger with American to a Trump administration official earlier this year, according to people familiar with the matter. The suggestion aimed at enabling global expansion to compete with other international carriers. Isom declined to confirm if United made a formal inquiry.

American Airlines issued a statement on Friday indicating it is not engaged in or interested in merger discussions with United Airlines.

stated earlier this week that he opposes the merger. In an interview on CNBC's Squawk Box on Tuesday, he said he does not like the idea of the two airlines merging. Trump also mentioned interest in someone buying a struggling discount carrier and suggested the federal government could assist it.

The Trump administration is in advanced talks for a rescue package for the discount carrier that could involve a significant government ownership stake, according to people familiar with the matter.

Context American Airlines has been trailing competitors including United Airlines and Delta Air Lines. The company is investing in premium products such as new planes and lounges to catch up. United Airlines, where Kirby previously served as president, has made changes like introducing new business class fares and adjusting cabin layouts for more premium seating.