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In this The Post Millennial article, United Airlines CEO Scott Kirby says a merger with American Airlines is unlikely, even as financial pressure across the airline industry continues to build. (The Post Millennial)
- Kirby said United is still open to buying airport slots or other assets, but a full consolidation deal with American is a “low probability.”
- The comments follow Kirby’s earlier claim that he approached American Airlines about a possible merger, but American declined to engage.
- Kirby argued that a merger could have benefited customers and shareholders, but said American’s public opposition made the idea impractical.
- He specifically pointed to American’s management being on record calling such a merger anti-competitive, saying that position effectively shut the door.
- Rising fuel prices are adding pressure to airline profitability, especially for smaller carriers that lack the scale of major airlines.
- Kirby said United expects higher fares to eventually offset fuel costs, though he acknowledged higher prices could soften demand.
- He also rejected criticism from International Air Transport Association head Willie Walsh, who accused major U.S. airlines of limiting competition.
- Kirby defended large carriers like United and Delta, saying customers increasingly value technology, service, reliability, and overall experience—not just a cheap seat.
- He also dismissed fuel hedging as a long-term solution, arguing it is ineffective if it causes airlines to lose money over time.
Read the full story:
https://thepostmillennial.com/united-rules-out-american-airlines-merger-as-industry-pressure-builds-leaves-door-open-to-asset-buys
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