United CEO called Delta in 2025 to discuss potential merger

United Airlines Chief Executive Scott Kirby called Delta Air Lines' CEO last year to discuss a potential merger between the two carriers, though the talks did not progress beyond the initial conversation, according to people familiar with the matter.

"US airlines have room for some mergers," Transportation Secretary Sean Duffy said in a recent statement, indicating a potentially more permissive regulatory environment for airline consolidation than under the prior administration, which successfully blocked JetBlue Airways Corp.'s proposed $3.8 billion acquisition of Spirit Airlines Inc. in 2024.

The call, which took place in 2025, did not advance to formal negotiations or due diligence, the people said. No deal value, payment structure or premium was discussed given the preliminary nature of the outreach. United separately approached American Airlines Group Inc. about a potential combination, according to a separate report, suggesting the carrier has been exploring multiple consolidation paths. The outreach to both Delta and American — United's two largest competitors — indicates a strategic push by Kirby to reshape competition through scale.

A merger between United and Delta would create the largest US airline by a wide margin, combining networks that span more than 350 destinations globally. The combined entity would control roughly 50% of the US air travel market based on 2024 passenger data, according to industry estimates. Such concentration would almost certainly trigger a challenge from antitrust regulators, who have taken an increasingly aggressive stance on airline consolidation. The Justice Department's successful lawsuit to block the JetBlue-Spirit merger set a precedent that any deal between the Big Four would face near-insurmountable odds.

The airline industry has consolidated from 10 major carriers in 2000 to four today — American, Delta, United and Southwest Airlines Co. — following a series of mergers including Delta-Northwest in 2008, United-Continental in 2010, American-US Airways in 2013 and Alaska-Virgin America in 2016. Each wave of consolidation has reduced competition and, according to a 2023 Government Accountability Office report, contributed to a 20% increase in average domestic fares over the past decade after adjusting for inflation.

For United, the calculus is driven by scale. The Chicago-based carrier has been investing heavily in its premium cabin offerings and international route network under Kirby, who took over as CEO in 2020. United reported $57 billion in revenue in 2024, while Delta reported $62 billion, making a combined entity worth roughly $120 billion in annual revenue. A merger with Delta would give United access to Delta's lucrative New York and Boston markets, as well as its transatlantic joint venture partners including Air France-KLM and Virgin Atlantic. Delta, for its part, has long positioned itself as the premium US carrier and has shown little interest in a combination that would dilute its brand equity.

The regulatory landscape may be shifting. Duffy's comments suggesting room for airline mergers represent a departure from the Biden administration's aggressive antitrust enforcement. However, even a more lenient approach would likely stop short of approving a deal between the two largest US carriers, antitrust experts said. Any formal merger proposal would require approval from the Justice Department's Antitrust Division and the Department of Transportation, a process that could take 12 to 18 months.

Shares of United Airlines (UAL) and Delta Air Lines (DAL) could see increased volatility as investors assess the implications of the exploratory talks. UAL has gained 34% over the past 12 months, while DAL has risen 28%, as strong travel demand has boosted airline profits. The broader airline sector, tracked by the U.S. Global Jets ETF (JETS), has risen 22% over the same period.

This article is for informational purposes only and does not constitute investment advice.