{"id":81963,"date":"2026-04-22T10:56:42","date_gmt":"2026-04-22T10:56:42","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/american-united-merger-fades-but-airline-deal-talk-heats-up\/"},"modified":"2026-04-22T10:56:42","modified_gmt":"2026-04-22T10:56:42","slug":"american-united-merger-fades-but-airline-deal-talk-heats-up","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/american-united-merger-fades-but-airline-deal-talk-heats-up\/","title":{"rendered":"American-United merger fades, but airline deal talk heats up"},"content":{"rendered":"


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It has been just over a week since rumors began to swirl<\/span> about American Airlines, United Airlines and what would have been an industry-altering merger between two top rivals.<\/p>\n

For now, at least, it appears those talks have been put to rest.<\/p>\n

That’s after American Airlines effectively said “no thanks,” and President Donald Trump appeared to throw cold water on the idea on Tuesday.<\/p>\n

But some lawmakers still have questions. We suspect you do, too.<\/p>\n

Allow us to catch you up and explain why the next big airline merger may still be coming<\/span>, even if it doesn’t involve two of the U.S.’ Big Three carriers joining forces.<\/p>\n

Why are we even talking about an American-United merger?<\/h2>\n

The head-turning talk about combining American and United bubbled up last week, when Bloomberg<\/span> and others reported that United CEO Scott Kirby had floated the idea of a merger to top lawmakers in Washington, D.C.<\/p>\n

Immediately, antitrust experts and consumer advocates bristled at the idea, which would have created a massive airline that would have dwarfed even the world’s second-largest carrier.<\/p>\n

TPG founder Brian Kelly said<\/span> the move would be “catastrophic” for flyers.<\/p>\n

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United Airlines and American Airlines aircraft in San Jose, Costa Rica. DANIEL SLIM\/AFP\/GETTY IMAGES<\/figcaption><\/figure>\n

“Outlandish” was the word used by Florian Ederer, professor at Boston University’s Questrom School of Business, when we talked last week.<\/p>\n

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He said a merger between two of the country’s largest airlines would likely be blocked \u2014 even in the more relaxed regulatory environment currently seen in Washington, D.C.<\/p>\n

“Even in the Trump administration,” Ederer said, “this would be looked upon as being absurd.”<\/p>\n

American: ‘No thanks’<\/h2>\n

In any event, it takes two to tango.<\/p>\n

And late last week, American made it clear where it stands.<\/p>\n

“American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” the Fort Worth-based carrier said in a statement<\/span> late Friday, which essentially acknowledged such a deal would be a net-negative for consumers.<\/p>\n

United declined to comment.<\/p>\n

A letter from Washington, D.C.<\/h2>\n

Lawmakers still weren’t convinced.<\/p>\n

Over the weekend, American and United received a sternly worded letter from a bipartisan duo of senators who demanded to know whether the two airlines have, in fact, discussed a merger.<\/p>\n

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The U.S. Capitol in Washington. PENNY ROGERS PHOTOGRAPHY\/MOMENT\/GETTY IMAGES<\/figcaption><\/figure>\n

Such a deal “could lead to increased prices for consumers, at a time when airlines are already squeezing flyers through higher fares and fees,” Sens. Elizabeth Warren, D-Mass., and Mike Lee, R-Utah, wrote Sunday.<\/p>\n

White House weighs in<\/h2>\n

Then came the White House, which looms large in determining whether any big airline merger ultimately gets the green light.<\/p>\n

Speaking Tuesday morning in a live interview<\/span> on CNBC’s Squawk Box, Trump was asked about an American-United deal.<\/p>\n

“I don’t like it,” he quickly said.<\/p>\n

“American, it’s doing fine and United is doing very well,” Trump added. “I don’t like having them merge.”<\/p>\n

A merger may be coming, though<\/h2>\n

But even if American and United don’t actually pair up (the merger seems unlikely at this point), there does seem to be growing momentum toward<\/span> some sort of airline industry merger in the U.S.<\/p>\n

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SEAN CUDAHY\/THE POINTS GUY<\/figcaption><\/figure>\n

Could history repeat itself?<\/h3>\n

Skyrocketing jet fuel costs<\/span> have eaten into airlines’ bottom lines, adding particular pressure to a handful of low-cost carriers that had already been struggling to turn a profit.<\/p>\n

This month, Delta Air Lines CEO Ed Bastian noted that a similar situation in the past led to a wave of corporate deals that created today’s airline industry, which is dominated by a small number of very large carriers.<\/p>\n

“What drove consolidation was higher fuel prices back in 2009, 2010, 2011,” Bastian told analysts on this month’s earnings call. “So I anticipate higher fuel prices will cause much more significant structural reform than we’ve seen over this period.”<\/p>\n

Spirit’s struggles front and center<\/h3>\n

Delta isn’t alone in that prediction.<\/p>\n

In rebuffing United on Friday, American seemed to foreshadow future merger activity, acknowledging that “changes in the broader airline marketplace may be necessary.”<\/p>\n

A key factor in all of this: beleaguered Spirit Airlines, which is currently in Chapter 11 bankruptcy for the second time. Reports say it could be on the brink of liquidation.<\/span><\/p>\n

Although Trump was dismissive of an American-United tie-up on CNBC Tuesday, he was far more bullish on a deal involving the Florida-based budget airline.<\/p>\n

“I don’t mind mergers,” Trump said, echoing past comments by Transportation Secretary Sean Duffy. (Last month, Duffy noted<\/span> that Trump “loves to see big deals happen.”)<\/p>\n

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ZACH GRIFF\/THE POINTS GUY<\/figcaption><\/figure>\n

“I’d love somebody to buy Spirit, as an example,” Trump added Tuesday, while suggesting the administration might be open to providing federal aid to the budget airline<\/span>.<\/p>\n

“Maybe the federal government should help that one out,” he said.<\/p>\n

A fifth large airline?<\/h3>\n

Even the passenger advocacy group Flyers Rights, which seldom supports airline industry consolidation (since it tends to drive up fares) acknowledged there’s one type of deal it would support: A merger that creates a fifth large airline to go toe-to-toe with the industry’s four titans \u2014 perhaps an acquisition by Alaska Airlines, the organization said.<\/p>\n

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Alaska Airlines plane pushes back in Seattle. SEAN CUDAHY\/THE POINTS GUY<\/figcaption><\/figure>\n

Alaska solidified itself as America’s fifth-largest carrier with its acquisition of Hawaiian<\/span>, which closed in 2024. However, it still remains far smaller than American, Delta, United and Southwest Airlines.<\/p>\n

Looking ahead<\/h2>\n

We expect to hear a lot more talk on Wednesday, when United holds its first-quarter earnings call.<\/p>\n

Related reading:<\/b><\/p>\n<\/div>\n