American Airlines (AAL) has dismissed rumours that it is in discussions about a possible merger with rival carrier United Airlines (UAL).
American, which is already the world’s biggest carrier, has rejected all talk of a potential merger between the two airlines.
In a news release, the company stated: “American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines.”
According to media reports, United Airlines CEO Scott Kirby had floated a potential merger with American during a February visit to the White House.
In recent months, Kirby has said that size would help United Airlines better compete on U.S. outbound flights and that the carrier was looking for a merger.
A consolidation of American and United Airlines would have create by far the world’s largest airline, meaning that any deal would have attracted heavy regulatory scrutiny.
The two carriers, along with Delta Air Lines and Southwest Airlines, already dominate about 80% of the U.S. domestic market.
An American-United merger would result in the combined carriers having roughly 40% of the U.S. market and raised concerns about a de facto monopoly.
However, United is reportedly looking to complete a merger as U.S. President Donald Trump and his administration are in favour of large deals and industry consolidation.
AAL stock is down 17% this year and trading at $12.78 U.S. per share. UAL stock is down 10% on the year and changing hands at $101.80 U.S. a share.
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