United approaches Delta about merger, talks stall, people say

Kirby courts American Airlines after Delta deal fails to advance

United Airlines approached Delta Air Lines last year about a potential merger, according to people familiar with the matter — a previously unreported outreach that shows Chief Executive Scott Kirby’s effort to reshape the U.S. airline industry through a combination of two of its dominant players.

Kirby made a direct call to Delta CEO Ed Bastian as part of the pitch, some of the people said. Delta leaders discussed the approach and the merits of a potential deal as part of preliminary due diligence, but the talks did not progress and both companies later moved on from the proposal, according to the people.

A merger between United and Delta — two of the world’s biggest airlines — would have combined carriers that together accounted for more than 90% of the industry’s profits last year. As of Friday, Delta had a market valuation of about $56 billion, while United’s market value was around $38 billion.

Industry officials have long considered any combination of the four largest U.S. carriers unlikely because of antitrust concerns. A United-Delta deal would have faced scrutiny from federal antitrust enforcers and state attorneys general, according to people familiar with the matter. During the second Trump administration, however, business leaders in many industries were hopeful that even large, previously unthinkable deals might gain approval.

Kirby has made no secret of his respect for Delta’s strategy. The Atlanta-based carrier has spent years focusing on the travel experience to build loyalty among premium travelers, becoming the most profitable U.S. airline. That approach inspired United’s own transformation in recent years.

The outreach to Delta came before Kirby’s later attempt to engage American Airlines in merger talks, which also became public earlier this year. Bloomberg reported that Kirby had floated the idea of a merger between United and American in a meeting with President Donald Trump. Lawmakers raised concerns that the tie-up could harm travelers. Trump said he did not like the idea, and American CEO Robert Isom called it “anticompetitive.”

Kirby has said he has little appetite for smaller deals. “In the past, airline mergers usually have been about two struggling airlines coming together to cut costs, flights and head count. My aspirations could not be more different,” he wrote in a statement in April about the American proposal. But without a willing partner, Kirby said in May that he does not see United participating in industry consolidation in the foreseeable future. He has denied that United would be interested in acquiring JetBlue, telling analysts and investors in May that only a big transaction, like the one he attempted with American, made sense.

High fuel prices, which are currently straining the industry, have historically been a catalyst for airline consolidation. Delta CEO Ed Bastian said recently that there could be consolidation among struggling smaller players but that it is not something Delta is looking to pursue.