President Donald Trump expressed firm opposition this Tuesday regarding a potential merger between United Airlines and American Airlines. At the same time, he indicated a willingness to consider a bailout or acquisition for the ultra-low-cost carrier (ULCC) Spirit Airlines, which is currently undergoing bankruptcy proceedings.
Rejecting the Consolidation of the “Giants”
In an interview with CNBC, Trump was blunt in his assessment of the financial health of the nation’s two largest carriers. According to the President, both United and American are operating solidly on an independent basis, which, in his view, invalidates the necessity of a tie-up.
“I don’t mind mergers,” Trump stated, “but American is doing well, and United is doing very well. I know the people at United; they are doing a great job. I don’t like them merging.”
This stance underscores the political and economic risks of backing an operation that, according to antitrust experts, would drastically reduce competition. A market already dominated by four major legacy carriers would see a combined entity between United and American controlling approximately 40% of U.S. domestic capacity.
Pricing Risks and Competitive Pressure
The possibility of this merger arises amidst high economic sensitivity ahead of the upcoming midterm elections. The administration seeks to project a focus on service affordability, and a union of this magnitude would grant the airlines excessive power to increase fares and ancillary fees.
- Global Dominance: According to data from the Official Airline Guide (OAG), when including international flights, United and American were already the two largest airlines in the world by available seat capacity in 2025.
- Strategic Rivalry: Both companies maintain fierce competition for market share at key hubs, such as Chicago O’Hare.
- Regulatory Hurdles: Experts warn that any deal would face nearly insurmountable antitrust barriers due to the overlap of routes and operations at major gateway airports.
→ JetBlue Rules Out Chapter 11 Bankruptcy Filing Despite Rising Fuel Costs
The Origin of the Proposal
The idea for this link-up was initially proposed by United CEO Scott Kirby during a meeting with Trump in late February. Although the meeting was originally scheduled to discuss the future of Washington Dulles International Airport, the topic of consolidation surfaced during the talks.
However, American Airlines declared last Friday that it has no interest in pursuing a merger with United. Furthermore, Trump’s advisors have not shown support for the initiative, suggesting that any attempt at a deal will face an extremely difficult path forward.
Spirit Airlines: A Case for Exception
In contrast to the situation with the “Big Three” carriers, Trump showed an open attitude toward the future of Spirit Airlines. The low-cost carrier has seen its financial position deteriorate, aggravated by a spike in fuel prices affecting the entire low-cost sector.
Trump highlighted the importance of protecting jobs:
- Workforce: The airline supports 14,000 jobs.
- Federal Intervention: The President suggested that “maybe the federal government should help” the company or facilitate a situation where “somebody buys them.”
This support contrasts with the previous actions of the Joe Biden administration, which in 2024 blocked JetBlue Airways’ acquisition of Spirit on the grounds that it would eliminate a key competitor that helped keep prices low. Currently, Spirit and other low-cost operators are requesting temporary tax relief amid fears that high operating costs will force them to pass expenses on to passengers.
Trump’s refusal of a United-American tie-up sends a clear signal to the market: the consolidation of major players is not a political priority, especially when the companies show profitability. Conversely, attention is shifting toward the survival of low-cost carriers, whose collapse would represent a massive loss of jobs and a reduction in affordable travel options for the American public.
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