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United Airlines explored a merger with Delta Air Lines last year, but the discussions ended after a preliminary review and never advanced according to a report from The Wall Street Journal.
The report says United Airlines CEO Scott Kirby approached Delta Air Lines CEO Ed Bastian about a potential combination of the two carriers. Delta reviewed the proposal, but both airlines ultimately decided not to pursue the idea further. Neither company had previously disclosed the talks.
Had a deal moved forward, it would have combined the two most profitable US airlines. According to the article, United and Delta generated more than 90% of the airline industry’s profits last year, which would have made any merger almost certain to face significant scrutiny from federal antitrust regulators and state attorneys general.
The revelation also highlights Kirby’s continued interest in industry consolidation. Earlier this year, a separate report from Bloomberg said Kirby raised the possibility of a merger between United and American Airlines during a meeting with President Donald Trump. That proposal also failed to gain traction.
Large airline mergers have become increasingly difficult to complete following heightened regulatory oversight in recent years. A combination of United and Delta would likely have created the nation’s largest airline by several measures while significantly reshaping competition across domestic and international markets.
Anthony’s Take: According to The Wall Street Journal, the United-Delta discussions ended during the exploratory phase with both companies ultimately deciding not to move forward. The report did not indicate that merger talks are continuing. It’s clear that Kirby wants a merger and I still think JetBlue is the airline that United will absorb when all is said and done.
(Image credits: United Airlines and Delta Air Lines.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
