The head of United Airlines has reportedly presented the possibility of merging with competitor American Airlines Group to federal government officials, according to a Bloomberg News report published Monday that cited sources with knowledge of the discussions.
Scott Kirby, United’s chief executive officer, has brought this concept to high-ranking government representatives, though the report indicates it remains uncertain whether any formal approaches have been made or if an official review process has begun for such a transaction.
When contacted for comment, United Airlines refused to provide a statement. American Airlines and the White House have not yet responded to requests for their perspective on the matter.
Such a merger between these major carriers would increase concentration in the American domestic aviation industry, which is currently dominated by four primary airlines: American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines.
Following the news, American Airlines stock prices climbed more than 5% in after-hours trading, while United Airlines shares remained unchanged.
Notably, Kirby previously held the position of president at American Airlines between 2013 and 2016 before joining United.
According to LSEG financial data, United Airlines currently holds a market value approaching $31 billion, significantly higher than American Airlines’ $7.42 billion valuation.
