United CEO pitches merger with American to Trump
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- Scott Kirby pitched a merger with American Airlines during a Feb 25 White House meeting with President Trump about Dulles Airport.
- American Airlines shares rose 9% in premarket trading after the report, while United shares rose about 2%.
- Christian Wetherbee of Wells Fargo noted the fuel shock creates an opportunity for United and Delta, but warned a United‑American merger would control around 40% of domestic capacity without divestitures.
- JetBlue was suggested as a smaller, more realistic target if American rejects United, giving United assets in New York and Florida with less regulatory fallout.
- Seth Bloom said a United‑American merger would be unlikely to clear regulatory hurdles, noting the administration's focus on consumer pricing and potential pricing power for airlines.
- S&P 500 Passenger Airline Index is down 7.5% YTD amid the jet‑fuel shock from the Middle East conflict.
- Atul Maheswari asked in mid‑March whether a bottom had formed in airline stocks.
Why it matters: United and American stand to gain a dominant 40% domestic share and pricing power, but antitrust scrutiny makes clearance unlikely, leaving the merger’s upside uncertain. Meanwhile, jet‑fuel price spikes hurt most carriers, while investors reward the news with short‑term stock gains.
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