United CEO Proposes Merger with American to Trump

United Airlines Chief Executive Scott Kirby proposed a merger with American Airlines during a White House meeting with President Donald Trump on February 25, sources familiar with the discussions said. The session, originally focused on the future operations of Washington Dulles International Airport, provided the opportunity for Kirby to suggest the combination as a way to strengthen U.S. carriers' position in international markets.

Kirby argued that a merged entity would better compete against foreign airlines, which control about two-thirds of long-haul seat capacity to and from the United States, even though roughly 60 percent of passengers on those routes are American citizens. The pitch aligned with the Trump administration's emphasis on addressing global trade imbalances. It remains unclear whether United has made any formal overture to American or initiated deal discussions, and representatives for both airlines and the White House declined to comment.

The news drove premarket gains for both companies on Tuesday. American Airlines shares rose more than 4 percent, while United's climbed around 2 percent. The uptick followed recent declines, with American down 14 percent...