American Airlines chief opposes United Airlines merger citing competition concerns

American Airlines CEO Addresses Potential United Airlines Merger

During a call with investors on Thursday, Robert Isom, the CEO of American Airlines, dismissed the notion of a merger with United Airlines. He expressed that such a union would ultimately be detrimental to all parties involved.

“We view the idea of merging two of the world’s largest airlines as anti-competitive. It’s a sentiment echoed by everyone we’ve talked to,” Isom remarked. “This would not be in the best interest of customers, the industry, or American Airlines itself.”

Last week, American Airlines made it clear that it was “not involved in or interested in any discussions regarding a merger with United Airlines.”

Concerns Over Industry Impact

United Airlines’ CEO, Scott Kirby, had proposed a merger to the Trump administration back in February and had even lobbied for its approval, according to reports. However, President Trump has expressed his disapproval, stating, “I don’t like them merging,” during an appearance on CNBC’s “Squawk Box.”

During United’s latest earnings call, Kirby tried to downplay the merger discussions, saying, “We’ve seen a lot of reports about merger rumors. We won’t comment specifically on those today.” He added that his earlier comments were from “the past” and that current news has altered perceptions.

Interestingly, Kirby mentioned that the international airline industry’s “global trade deficit” was a significant factor in initially proposing this consolidation to the Trump administration.

Market Dynamics

Both airlines hold a commanding presence in the U.S. domestic market, accounting for 37% of available seat miles, though they share less than 10% of the international market. In response to rising fuel costs, United Airlines is expanding its international services, planning to introduce direct flights from its Newark hub to destinations like Split, Croatia, and Glasgow, Scotland, starting in summer 2026.

American Airlines is also making strides, having announced plans for a new international route to Caracas, which would mark the first time a U.S. airline has flown to Venezuela in seven years.

As Isom distances himself from the United merger discussions, he acknowledges that while this specific opportunity is a “non-starter,” he hasn’t ruled out future mergers and acquisitions. “American Airlines has a long history of proactively pursuing integration opportunities or acquiring available assets in the market,” he noted. “We have a wealth of experience in this area.”