American Airlines dips after carrier rebuffs United merger approach

Investing.com -- American Airlines shares slipped in premarket trading Monday after the carrier said it had no interest in merging with United Airlines and had not held any such discussions, deflating prospects of a deal that would have ranked as the biggest airline consolidation in more than a decade.

The company’s stock slid 2.7% in the premarket trade by 05:43 ET.

"While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers," American said, adding that such a deal would be inconsistent with its understanding of the Trump administration’s approach to antitrust enforcement.

United Airlines CEO Scott Kirby pitched a potential merger to President Donald Trump at a White House meeting in late February, according to Reuters.

He argued that a combined carrier would be better positioned to compete in international markets, and highlighted the administration’s focus on U.S. trade deficits, the report said.

But a person close to the White House had told Reuters there was skepticism about the idea, given concerns over its effect on competition and ticket prices at a time when the administration is already attuned to rising costs for consumers ahead of November’s midterm elections.

A tie-up between the two carriers would have further concentrated a domestic market already dominated by four similarly sized players. By available seat capacity, United and American were already the world’s two largest airlines in 2025, according to OAG data.

Airline executives have pointed to rising fuel costs as a potential catalyst for consolidation, arguing that weaker carriers may be forced to seek partners or shed assets. Kirby has separately made the case that U.S. airlines need greater scale to compete against state-backed foreign carriers for international passengers.

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