American Airlines said Friday it is not pursuing a merger with United Airlines, issuing a statement after reports that United CEO Scott Kirby had raised the idea with Trump administration officials. The response came after markets closed, and CNBC reported the airline’s shares fell more than 4% in morning trading Monday, reversing gains from the prior session.
“American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” the company said in a statement Friday. “While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers, and therefore inconsistent with our understanding of the Administration’s philosophy toward the industry and principles of antitrust law.”
The statement follows earlier reports that Kirby had discussed a potential combination during a late-February White House meeting. A merger would create the world’s largest airline and account for about 40% of U.S. domestic capacity, according to CNBC, a level that would likely draw antitrust scrutiny.
“If United and American were to merge, airlines would face less pressure from rivals to keep the cost of flying down,” Sens. Elizabeth Warren, D-Mass., and Mike Lee, R-Utah, wrote in a letter reported by CBS News. “And airlines across the industry could raise ticket prices and fees even higher.”
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