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United Airlines Explores American Airlines Deal Amid Antitrust Concerns

By  |  April 14, 2026

A potential merger between United Airlines and American Airlines could reshape the U.S. aviation landscape, creating a dominant carrier while triggering intense scrutiny from regulators, labor groups, and consumer advocates concerned about reduced competition and rising fares.

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    According to Reuters, United Airlines CEO Scott Kirby raised the idea of combining the two carriers during a late February discussion with U.S. President Donald Trump. Two sources familiar with the matter said the proposal was presented at a high level, though the specific details of the potential deal remain unclear. United declined to comment on the antitrust implications.

    Industry experts were quick to highlight the significant legal hurdles such a merger would face. “This seems hopeless to me. There are huge overlaps on a number of routes and in various metropolitan areas (such as Chicago). No amount of divestitures would fix it,” said William Kovacic, director of the competition law center at George Washington University, per Reuters.

    Despite the regulatory concerns, investors reacted positively to the possibility of consolidation. Shares of American Airlines rose 7% in morning trading, while United Airlines stock gained about 2%, according to Reuters. Analysts suggested the market viewed the potential deal as a rare opportunity for American, which has struggled in recent quarters with profitability and cost control.

    “In terms of valuation, we imagine American would anchor to their unencumbered asset base of over $14bn and argue for a valuation over $20/share, though (we) wonder if that is realistic, given how much their leverage would alter United’s risk profile,” TD Cowen analyst Tom Fitzgerald said, per Reuters. A $20-per-share valuation would represent a 78% premium over American’s most recent closing price.

    Read more: United Airlines CEO Rules Out Buying Spirit Airlines Assets

    The ripple effects extended across the airline sector. JetBlue Airways jumped 9%, while Alaska Air rose 7%. Southwest Airlines and Delta Air Lines each climbed roughly 6%, buoyed in part by declining crude oil prices, according to Reuters.

    Even if the Trump administration were receptive to the proposal, the merger would likely face challenges from multiple fronts. According to Reuters, states have taken a more aggressive stance on antitrust enforcement, with coalitions increasingly willing to challenge major deals in court. Competitors and consumer groups could also seek to block the transaction.

    A combined United-American entity would command significant market power. Before any divestitures, the merged airline would control 50% or more of domestic capacity at 159 airports, Fitzgerald noted, according to Reuters. Such dominance would almost certainly intensify regulatory scrutiny and raise concerns about competition in key markets.

    Source: Reuters