A merger between any of the USA’s leading airlines is unlikely to happen soon, according to United Airlines CEO Scott Kirby. This is despite a fall in profit margins for major airlines due to the ongoing conflict in the Middle East leaving some financially vulnerable. Kirby told the 2026 Annual General Meeting (AGM) of the International Air Transport Association (IATA) that a future merger was possible but unlikely.
What Has Kirby Said?
Scott Kirby was asked about whether he would continue to pursue mergers with United Airlines’ American counterparts, following American Airlines’ rejection of a merger bid earlier this year.
The process of airlines merging, or of one buying another, is known as consolidation, and has been suggested as a means of improving the financial sustainability of the airline industry at a time of rising supply costs.
“Everyone loves to talk about (consolidation) but… it’s hard and you shouldn’t do deals that don’t make economic sense.” Kirby said, “You shouldn’t do deals just to do deals.”
Despite his caution when planning future mergers, Kirby was far more positive when discussing the prospect of buying assets from airlines. He said that United Airlines is exploring the possibility of buying airport slots and gates from companies that are looking to sell assets or have collapsed entirely due to increased cost pressures.
Is Future Airline Consolidation Likely?
United Airlines’ proposal to merge with American Airlines was rejected in April, despite Kirby having apparently raised plans for future consolidation with U.S. President Donald Trump.
American Airlines CEO Robert Isom suggested that any deal would be anti-competitive and stated that the two airlines would remain “roommates” without “getting married.”
This halted a trend of consolidation that has significantly altered the U.S. air travel market in recent years. Most recently Allegiant Air acquired Sun Country Airlines for $1.5 billion in May, while Alaska Airlines merged with Hawaiian Airlines in September 2024.
“We want to finish what we have with Hawaiian,” said Alaska’s chief executive Ben Mincucci when asked about future consolidation plans. “We have a fantastic organic growth story.”
Both Alaska Airlines and Delta Air Lines have voiced their interest in potential future mergers.
The Financial Pressures Facing Airlines
Much of the discussion at this year’s IATA AGM has been centred around a report published by the IATA which suggests that jet fuel prices are set to rise 70% year-on-year due to the ongoing conflict in the Middle East.
“High oil prices will inevitably mean higher ticket prices” said IATA’s director general Willie Walsh.
The same report estimated that industry-wide net profit margins will fall from 4.2% in 2025 to 2% in 2026, putting financial pressure on smaller airlines.
America’s Spirit Airlines shut down in May after failing to secure a rescue package from the Trump administration.
This has increased the urgency of consolidation talks, with the industry fearing that more airlines could become financially unsustainable if mergers aren’t completed.
These future mergers are unlikely to include United Airlines, with Kirby rejecting a deal with JetBlue in April, citing the low-cost airline’s lack of profitability.
“There could be” a merger, Kirby said, “but you just asked me what I think, and I think there’s nothing.”
He later suggested that United would only be interested in a full merger with American Airlines.
Have you been following the news from the IATA’s AGM? And would you be sad to see smaller airlines go out of business? Let us know in the comments.
