April 13 (Reuters) – United Airlines CEO Scott Kirby has floated a possible combination with rival American Airlines Group, Bloomberg News reported on Monday, citing people familiar with the talks.
Kirby has pitched the idea to senior government officials, though it’s unclear if any overtures have since been made or if an actual process is underway to explore a deal, Bloomberg added.
United Airlines declined to comment. American Airlines and the White House did not immediately respond to requests for comment.
A potential merger would further consolidate the U.S. domestic passenger market controlled by four U.S. airlines – American Airlines, Delta Air Lines, United Airlines and Southwest Airlines.
American Airlines shares were up more than 5% after the bell, while United Airlines was flat.
Kirby has previously served as the president of American Airlines from 2013 to 2016.
United Airlines has a market capitalization of nearly $31 billion, while American Airlines is valued at $7.42 billion, as per LSEG data.
(Reporting by Natalia Bueno Rebolledo in Mexico City; Editing by Maju Samuel)
