By Rajesh Kumar Singh
CHICAGO, April 22 (Reuters) – United Airlines CEO Scott Kirby on Wednesday played down speculation about a potential tie-up with American Airlines and declined to comment on reports he had floated the idea to the White House.
“We’ve seen a lot of press coverage regarding consolidation rumors. We’ve not commented specifically on those reports and aren’t going to start today,” Kirby said on United’s earnings call.
He said his earlier comments reflected long-held views about the airline industry but were being interpreted differently in light of the merger reports.
Kirby raised the idea of a combination with American during a meeting with U.S. President Donald Trump in late February, people familiar with the matter told Reuters last week. The meeting had been scheduled to discuss the future of Washington’s Dulles airport.
American has said it is not interested in pursuing a deal.
“Everything that I’ve said … are things that I have said in the past,” Kirby said, adding the comments were being viewed differently “because of the rumors that came out last week.”
In an interview with Reuters on Tuesday, U.S. Transportation Secretary Sean Duffy called the proposal “interesting” but said United would need to make a stronger case for consumers.
Trump said on Tuesday he opposes a potential merger between the two airlines.
FOCUS ON GLOBAL COMPETITION
Kirby framed his thinking in terms of long-term competition, arguing that U.S. airlines face structural disadvantages against large carriers in the Middle East and Asia.
“There is this big global trade deficit,” he told analysts on Wednesday, referring to international aviation, but did not spell out what changes might be needed, saying any solution would come with “complications.”
He emphasized that United’s growth has come from winning customers across segments rather than relying on consolidation. He pointed to investments in onboard products and technology and said the approach has helped the airline perform strongly despite a sharp rise in fuel costs.
Kirby also highlighted the role of partnerships, saying United’s global reach is supported by its Star Alliance network, which allows it to serve destinations that would not be viable on its own.
“I think it’s extremely unlikely that we’ll open a foreign hub anywhere,” he said.
(Reporting by Rajesh Kumar SinghEditing by Rod Nickel)
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