Turns Out, United Has Been on a Wild Hunt for a Major Merger

United CEO Scott Kirby floated the idea to merge with American Airlines this year, but before he approached another airline giant.United Airlines made headlines earlier this year when CEO Scott Kirby floated the idea of a merger with American Airlines. The marriage of the two largest airlines would have reshaped the aviation industry, but American did not take the bait. Now, thanks to the reporting of The Washington Post, we know that before Kirby approached American, he made a call to Delta CEO Ed Bastian to discuss a possible merger.Delta’s leadership discussed the merits of the deal after United’s proposal, but the talks did not progress, and the companies eventually moved on. Together, Delta and United generated more than 90% of industry profits. Along with American and Southwest, they make up the big four of the aviation industry in the U.S. A merger between two of them would have impacted consumers, and a deal like this would have faced intense scrutiny from regulators and antitrust enforcers.There were no news reports about this possible deal last year, but United’s Kirby also attempted a mega-merger with American Airlines, which played out in public. Continue Reading Article After Our Video Recommended Fodor’s Video Related: The Biggest Airline Merger in Decades Could Send Ticket Prices SoaringEarlier this year, Kirby pitched an idea to President Donald Trump to merge United and American. He argued that this would create strong competition for global airlines. After much speculation, American Airlines responded in April with a public denial: they were not interested.“American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” a statement said at the time. “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. Our focus will remain on executing on our strategic objectives and positioning American to win for the long term.”American Airlines is trying to catch up with its rivals. Currently, Delta leads in profits; it earned $5 billion more than American last year, while United made $3 billion more.Kirby, who has a “big, bold vision,” explained in a later statement that the merger could have received regulatory approval but needed a willing partner. Mergers are usually about struggling airlines, but the United CEO wants to “usher in a brand new era of leadership by U.S. aviation.”In May, he also said that the airline is not interested in acquiring JetBlue, which is smaller. In his words, it would be “idiotic” and “definitely not the plan.”But even if the airlines agreed, such a merger would face hurdles from regulators. Two big airlines joining forces would likely reduce competition and raise prices, negatively affecting the marketplace and risking the creation of a monopoly.In 2024, a federal judge blocked a JetBlue-Spirit merger, ruling that it would be harmful to customers and arguing that if Spirit Airlines were eliminated, other airlines would not have the incentive to match the ultra-low prices it offered. In the end, Spirit Airlines collapsed this year after it failed to secure a bailout deal from the Trump administration. The airline had been in trouble for years, but jet fuel prices driven by the U.S.-Iran war sealed its fate.Related: Will Travelers Suffer Because of the Ruling Against the Spirit-JetBlue Merger?