United Airlines CEO Scott Kirby has made it clear that his airline will not be merging with American Airlines anytime soon. Speaking at the IATA annual meeting in Rio de Janeiro, Kirby stated that a merger is unlikely due to a lack of support from American's management.

The $30 billion divide

Kirby emphasized that any major consolidation would require a willing partner, and American's public opposition made the transaction impractical. he also denied that United had discussed giving the U.S. government a golden share as part of any merger proposal with the Trump administration.

The CEO framed the current industry divide as being between airlines with strong customer loyalty and those still competing primarily on price.. He argued that United and Delta Air Lines are winning due to investments in technology, service, reliability , and overall product experience that travelers value.

Rising fuel costs: a $30 million toe in the water

Kirby addressed the impact of rising fuel prices on the industry, noting that higher fares are expected to help United recover the cost impact later this year. He expressed confidence in strong demand despite increasing ticket prices, though he acknowledged that eventually higher fares may have some effect.

The executive dismissed fuel hedging as a structural solution to volatile fuel costs, calling it ineffective over time. While acknowledging that Delta's ownership of a refinery provides an advantage in the current environment, Kirby stated United is not interested in pursuing a similar strategy by purchasing a refinery.

A familiar pattern from the 2019 crash

Kirby also rejected criticism from IATA head Willie Walsh about large U.S. carriers squeezing out competition. He noted that United and Delta Air Lines are winning due to investments in technology, service, reliability, and overall prduct experience that travelers value.

When asked about potential acquisition targets, Kirby said JetBlue would not become a more attractive takeover candidate even if it entered Chapter 11 reorganization, citing the airline's cash and unencumbered assets.

Who is the unnamed buyer?

The source article does not mention the unnamed buyer, but it is worth noting that the airline industry is highly competitive and consolidation is a common trend. The lack of support from American's management makes a merger between United and American Airlines unlikely.