United Airlines CEO Discusses Potential Merger with American Airlines in February White House Meeting

# United Airlines CEO Pitched Merger with American Airlines to Trump Administration United Airlines CEO Scott Kirby pitched a merger with American Airlines during a February 25 White House meeting with Donald Trump about the future of Dulles Airport.

Kirby floated the potential merger to Trump administration officials earlier this year. He also pitched the potential for merging with American Airlines directly to Donald Trump.

United Airlines and American Airlines are the world's two largest airlines by available capacity. A combined American and United would have a roughly 40% domestic share according to airline data firm OAG. Wells Fargo analyst Christian Wetherbee stated that a potential merger between United and American could control around 40% of domestic capacity without divestitures.

Kirby Highlights Benefits of Potential Merger Kirby stated that a combined United-American airline would be better positioned to compete internationally.

U.S. competitiveness globally. -Iran conflict sent jet fuel prices skyrocketing. Most domestic carriers except Delta Air Lines have been hit by soaring jet fuel costs. 5% year to date amid the jet-fuel shock from the Middle East conflict.

American Airlines shares traded up 9% in premarket trading, while United Airlines shares traded up around 2% in premarket trading.

Analysts Assess Merger Feasibility Antitrust lawyer Seth Bloom stated that a United-American merger would be unlikely to clear regulatory hurdles.

Bloom stated that the administration cares about issues affecting the consumer's pocketbook and a merger would give airlines more pricing power.

“A potential merger between United and American could control around 40% of domestic capacity without divestitures.”

“— Christian Wetherbee, Wells Fargo analyst > "A United-American merger would be unlikely to clear regulatory hurdles.”

“— Seth Bloom, antitrust lawyer Kirby takes 20-minute naps on the floor of his office. He stated he has accomplished more during those 20-minute naps than anything else he could have done in that time.”