The Chief Executive Officer of United Airlines, Scott Kirby, reportedly proposed a possible merger between United Airlines and American Airlines during a meeting with US President Donald Trump at the White House in late February, according to sources familiar with the discussion.

The conversation took place on February 25 during a scheduled meeting focused on the future of Dulles International Airport. Although the merger idea was raised informally, it carries major implications because of the size and market dominance of both airlines.

If completed, a merger between United and American would mark the largest consolidation in the airline industry in more than a decade, further concentrating a US aviation market already dominated by four major carriers. Alongside Delta Air Lines and Southwest Airlines, the two airlines already account for a significant share of domestic and international passenger traffic.

According to aviation data from OAG, United and American ranked as the world’s two largest airlines by available seat capacity in 2025 when international routes are included. Kirby reportedly argued that combining both carriers would create a stronger US airline better positioned to compete with foreign rivals on long-haul international routes.

He also pointed out that many long-haul flights to and from the United States are operated by non-US carriers, despite most passengers being American citizens. Kirby framed the merger as a strategic move to strengthen US aviation competitiveness globally and align with broader economic goals, including reducing trade imbalances.

The proposal came shortly before heightened geopolitical tensions involving the United States, Israel, and Iran pushed jet fuel prices sharply higher. The resulting rise in operational costs has already forced airlines to adjust pricing, including higher fares and added fees.

Despite the strategic rationale, analysts and regulatory experts remain skeptical about the merger’s feasibility. Concerns focus on reduced competition, overlapping routes, and the likely impact on ticket prices and consumer choice.

Opposition is expected from labour unions concerned about job cuts, rival airlines wary of increased market dominance, lawmakers focused on antitrust issues, and airport authorities monitoring route concentration.

Antitrust lawyer Seth Bloom noted that the merger would face major regulatory obstacles, even under an administration considered more open to corporate consolidation. He stressed that current policy priorities remain focused on protecting consumers from rising prices, and such a merger could give airlines too much pricing power.

Sources close to the White House say there is internal skepticism about the proposal, especially because of its possible effects on competition at a time when inflationary pressures remain politically sensitive ahead of midterm elections.

Neither United Airlines nor American Airlines has confirmed formal merger talks, and it is unclear whether any official proposal has been submitted or whether discussions have advanced beyond preliminary exploration. Both companies declined to comment, while the White House has not issued clarification.

Market reaction was immediate but moderate. Shares in American Airlines rose more than five percent in after-hours trading, reflecting investor optimism, while United Airlines stock showed little movement.

American Airlines continues to face pressure to improve financial performance as it works to narrow the gap with competitors like United and Delta. The company is also managing around $25 billion in long-term debt, limiting flexibility during a period of rising fuel costs.

United Airlines, by contrast, has projected confidence in navigating industry challenges. Kirby has previously suggested that prolonged cost pressures could create opportunities for stronger airlines to expand as weaker competitors struggle.

The broader US airline industry remains highly concentrated, with the four largest carriers each controlling roughly 17 percent of domestic traffic, according to Department of Transportation data. Any merger between two of these dominant players would significantly reshape the competitive landscape.