Wall Street closes at a record for the first time since end of January
April 14 (Reuters) - United Airlines and American Airlines shares rose in premarket trading on Tuesday after United CEO Scott Kirby, sources said, pitched the potential for a merger of the two carriers to U.S. President Donald Trump in February.
A merger of two of the biggest U.S. carriers could be the largest ever airline consolidation in more than a decade.
American shares were up about 4%, while United rose around 2%.
Both stocks have slid in recent weeks as the U.S.-Israeli war with Iran sent jet fuel prices sharply higher, with American plunging 14.1% and United slumping 10.4% since the conflict began in late February.
Kirby raised the idea during a February 25 White House meeting focused on the future of Washington’s Dulles airport, sources told Reuters.
He argued a combined airline could better compete internationally, where foreign carriers control a majority of long-haul seat capacity to and from the U.S., despite most passengers being U.S. citizens.
Industry officials and antitrust experts said approval would face steep hurdles, citing concerns over competition, higher fares, job losses and significant route overlap in an already highly concentrated U.S. airline market dominated by four large carriers.
United and American declined to comment, and the White House did not respond to requests for comment.