Stock Markets April 27, 2026 07:27 AM

Kirby Says United Approached American With Growth-Focused Merger Plan; Proposal Rejected

United pitched a deal centered on network expansion and job creation, but American declined to engage and public opposition surfaced

By Leila Farooq UAL AAL
Kirby Says United Approached American With Growth-Focused Merger Plan; Proposal Rejected
UAL AAL

United Airlines CEO Scott Kirby confirmed he reached out to American Airlines in recent weeks to explore a possible combination. American declined to pursue talks. Kirby framed the proposal as a growth-first transaction designed to add unionized jobs, broaden service to smaller and international markets, and scale United’s customer-facing investments across a larger network. The outreach did not progress to formal negotiations and faced immediate political pushback.

Key Points

  • United CEO Scott Kirby confirmed he approached American Airlines about a potential merger over the past two weeks; American declined to engage.
  • Kirby framed the proposal as growth-first: creation of tens of thousands of unionized jobs, expanded service to smaller communities and more international destinations, and broader rollout of United’s customer investments such as newer aircraft and free Starlink Wi-Fi.
  • The plan would have required divestitures in certain domestic markets and faced immediate political opposition, but Kirby said he believed regulators would approve based on customer and employment benefits.

United Airlines CEO Scott Kirby said on Monday that he personally contacted American Airlines in the past two weeks to probe the possibility of combining the two carriers. According to Kirby, American rejected the approach and publicly closed off discussions before any formal negotiations began.

Kirby described the proposed transaction as focused on growth rather than the cost-cutting approach common in earlier airline consolidations. He said the merged carrier would have pursued expansion of service and employment instead of reduced flight schedules and workforce eliminations.

On employment, Kirby asserted the deal would have produced "tens of thousands" of new unionized jobs and extended air service to smaller communities as well as to more international destinations. He also argued the combined carrier would have amplified United’s customer-oriented investments - including newer aircraft, complimentary Starlink Wi-Fi, and enhanced technology - by making those improvements available to a larger pool of travelers.

Kirby pointed to competitive dynamics on long-haul routes into the United States, noting that foreign carriers operate roughly 65% of long-haul seats into the country while serving about 40% of foreign citizens. He said a larger U.S. carrier could better compete with those international airlines. He added the deal would have supported American manufacturing through additional aircraft orders and contributed to the U.S. economy by increasing both domestic and international service.

The United chief acknowledged that the transaction would have required divestitures in some domestic markets. He expressed confidence that regulators would have approved the merger on the basis of the customer benefits and job creation he described.


Not all reactions were favorable. Senator Richard Blumenthal publicly opposed the potential merger on the social platform X, posting:

"My advice to United: don’t even try."

With talks ended, Kirby said United will carry on with its existing strategy and operations with its workforce of 115,000 employees.

The outreach to American did not advance into formal bargaining because American declined to engage, leaving the proposal as an unconsummated approach from United’s leadership.

Risks

  • Regulatory uncertainty - Kirby acknowledged the deal would require divestitures in some domestic markets and approval from regulators, creating a risk that authorities might not accept the transaction terms.
  • Political opposition - Senator Richard Blumenthal publicly urged United not to pursue the merger, indicating potential political headwinds that could influence public and regulatory sentiment.
  • Counterparty refusal - American Airlines declined to engage in talks, demonstrating the risk that a proposed transaction may not proceed if the other party chooses not to negotiate.

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