Stock of American Airlines (AAL) Drops After It Denies Merger Talks with United Airlines

TLDR

• American Airlines has rejected any interest in a merger with United Airlines (UAL)
• AAL’s stock dropped more than 1% in after-hours trading following the statement
• United Airlines CEO Scott Kirby is said to have presented the merger proposal to the White House in February
• A merged AAL-UAL entity would become the world’s largest airline
• U.S. Transportation Secretary Sean Duffy stated that industry consolidation is feasible, though any deals would undergo careful examination

(SeaPRwire) –   On Friday, American Airlines strongly refuted reports of a possible merger with United Airlines, leading its stock to decline in after-hours trading.

AAL’s share price fell over 1% after the company issued a statement clarifying it is neither engaged in nor interested in any merger discussions with United.

American Airlines Group Inc. (AAL)

“A combination with United would be negative for competition and for consumers,” American Airlines said, adding that such a deal would be “inconsistent with our understanding of the Administration’s philosophy.”

This denial followed a Bloomberg report disclosing that United’s CEO Scott Kirby had proposed the idea of merging the two carriers to senior government officials—including President Trump—in February.

Kirby previously served as President of American Airlines before moving to United, where he now holds the CEO position.

The Bloomberg report does not specify whether any formal process is underway to explore a potential deal.

Antitrust Concerns Would Be Inevitable

A merger between AAL and UAL would form the world’s largest airline.

Together, the two carriers hold more than a third of the U.S. domestic passenger market, alongside Delta (DAL) and Southwest (LUV).

Analysts have noted that a deal of this magnitude would trigger rigorous antitrust scrutiny and likely face opposition from consumer groups and rival carriers.

Earlier this month, U.S. Transportation Secretary Sean Duffy addressed industry consolidation, telling CNBC that there is room for deals in the sector.

Duffy mentioned that President Trump is generally supportive of large-scale deals taking place.

Regulators Would Still Have a Voice

However, Duffy also warned that any major airline merger would be reviewed for its impact on ticket prices and competition.

He stated that if two major carriers combined, the companies would likely need to divest certain assets to prevent excessive market concentration.

American Airlines’ statement appeared to directly address that regulatory reality, framing a UAL tie-up as conflicting with antitrust principles.

Earlier in the week, UAL’s stock climbed 7.12%—likely buoyed by merger speculation—while AAL had gained 4.16% in the same period before Friday’s after-hours drop.

By 6:09 PM ET on Friday, AAL’s stock had retreated as the market digested the airline’s firm rejection of the deal.