American Airlines Group Inc. has firmly rejected speculation about a potential merger with United Airlines, stating that such a deal would harm competition and consumers.
In a statement released Friday, American said it is “not engaged with or interested in any discussions” regarding a combination with its rival, despite recent reports suggesting that talks had been floated at high levels. The airline added that a merger would run counter to antitrust principles and the current administration’s approach to maintaining a competitive aviation industry.
The comments follow reports that United CEO Scott Kirby raised the idea of a merger in discussions with senior officials in the administration of Donald Trump earlier this year. According to those reports, Kirby argued that combining the two carriers could create a stronger global competitor and potentially form the world’s largest airline, dominating both domestic and international routes.
Industry analysts, however, were quick to flag significant concerns. The U.S. airline market is already heavily concentrated among the so-called “Big Three”, American, United, and Delta Air Lines. A merger between two of these giants, they warned, would sharply reduce competition, particularly on routes through major hubs such as Chicago, New York, and Dallas, potentially leading to higher fares and fewer travel options for consumers.
Investor reaction to American’s statement was muted. Shares of the airline dipped slightly in after-hours trading, as the company’s clear rejection of a merger dashed speculation that a deal could boost short-term valuations. United’s stock showed little movement.
For its part, American said it remains focused on executing its long-term strategy and improving its competitive position independently, signaling that it intends to compete, not combine, in an already tightly contested industry.