United chief blasts American for shutting door on merger that could boost jobs and global competitiveness
United Airlines CEO Scott Kirby publicly pressed American Airlines to consider a merger, arguing the tie-up would have created tens of thousands of jobs, strengthened the U.S. aerospace industry, and formed a more capable global competitor, but American declined to engage, calling any deal negative for competition and consumers. The debate comes as profits are pressured by fuel costs and an energy shock from Iran; American reported about $400 million in jet fuel costs in Q1 and United recently cut its full-year profit outlook, while United stock rose about 0.9% and American’s was little changed. Analysts warned that regulatory and political hurdles would be steep even with concessions, though some see potential benefits if a tie-up with JetBlue were pursued.
