A merger between United Airlines and American Airlines would see the new carrier operate nearly 2,900 aircraft and carry more than 400 million passengers annually|Bill Abbott|CC BY 4.0
United CEO Scott Kirby suggested to President Donald Trump that his company acquire American Airlines, an ambitious move expected to come under scrutiny.
A combined airline would generate over $114 billion in annual revenue, far ahead of Delta Air Lines Inc. at about $63 billion. If approved, the merged carrier would operate nearly 2,900 aircraft and carry more than 400 million passengers annually.
The merger would control more than a third of the US airline market, generating annual revenue of more than $100 billion.
Kirby said the tie-up would strengthen global competition, as foreign carriers hold two-thirds of long-haul seats even though most (~60%) travelers are Americans.
Market conditions are driving consolidation talks. Rising jet fuel prices, linked to tensions affecting oil routes such as the Strait of Hormuz, have increased costs. United has already cut capacity to manage this pressure.
But the deal is expected to face major regulatory hurdles. Past US airline deals have faced legal roadblocks, making approval uncertain despite political openness to mergers.
US authorities, including the Department of Justice, would closely review its impact on fares, competition, and market dominance. Officials have stated that airlines may need to sell key assets, such as airport slots, to win approval.