United’s CEO Is Eyeing a Mega-Merger With American Airlines. Regulators May Stand in the Way

United Airlines CEO Scott Kirby has been quietly exploring the idea of a merger with American Airlines for longer than the public knew, conferring with Trump administration officials earlier this year, according to people familiar with the matter who spoke to Bloomberg.

The discussions appear preliminary, and it remains unclear whether any formal outreach has been made or if a deal is actively being pursued. A tie-up between the two carriers would create the largest airline in the world, an outcome many analysts view as highly unlikely given steep regulatory hurdles, CNBC reported.

A combined United-American airline would generate more than $100 billion in revenue and operate a fleet of over 2,800 aircraft. It would also consolidate power in an industry already dominated by four major players—American, United, Delta Air Lines, and Southwest Airlines—which together control roughly 80 percent of the U.S. domestic market, according to CNBC.

That concentration is precisely why a deal would face intense scrutiny. Significant overlap in hub cities across the U.S. could trigger pushback from regulators and smaller competitors concerned about being squeezed out, Bloomberg reported.

For Kirby, the idea is both business and personal. Before joining United in 2016, he served as president of American Airlines but departed after it became clear he would not become CEO. At United, he quickly rose to the top job.

His broader rationale centers on global competition, where U.S. airlines often lose customers to international rivals.

“Size would help” compete on U.S. outbound flights, Kirby said on the Stratechery podcast in January. “We have customers that fly United almost all the time or they fly Delta, but when they go to the Middle East, it’s fragmented enough that they fly on Emirates,” he said. “If we’re bigger and have more offerings for those customers, possibly, it makes it more rational for them to fly us when they go to the Middle East.”