White House · Bloomberg · U.S. · Donald Trump · Strait of Hormuz · Sherwood News
American Airlines rallies as United CEO floats the idea of a megamerger
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American Airlines was trading up more than 5% in premarket trading on Tuesday after Bloomberg and that United Airlines CEO Scott Kirby had floated the idea of a possible merger with American Airlines.
Key facts
- American Airlines was trading up more than 5% in premarket trading on Tuesday after Bloomberg and that United Airlines CEO Scott Kirby had floated the idea of a possible merger with American Airlines
- Shares of United Airlines were also up modestly on the news, rising roughly 2% in premarket trading
- Kirby raised the idea during a February White House meeting with President Trump, though it remains unclear whether United has made any formal approach to American or whether any deal process
- The talks come as airlines grapple with higher jet fuel costs driven by the US-Iran war and the effective closure of the Strait of Hormuz
Summary
Kirby raised the idea during a February White House meeting with President Trump, though it remains unclear whether United has made any formal approach to American or whether any deal process is underway. Such a deal would create a true airline giant, combining the world ’ s largest and fourth-largest airlines by capacity, respectively, per OAG data, which together control more than a third of the US market. With that in mind, any tie-up would likely face serious antitrust obstacles, with scrutiny from both the Department of Justice and the Department of Transportation. The talks come as airlines grapple with higher jet fuel costs driven by the US-Iran war and the effective closure of the Strait of Hormuz.