United Airlines Holdings, Inc. (UAL) CEO Scott Kirby believes we won't see any major mergers among U.S. airlines anytime soon. He made this clear after American Airlines turned down the idea of a potential merger earlier this year, stating that he isn't keen on pursuing a merger just for the sake of growth.
At the annual meeting of the International Air Transport Association in Rio de Janeiro, Kirby pointed out that options for mergers between major U.S. carriers are pretty much limited.
Sure, there have been some recent deals, like the ones between Alaska Airlines and Hawaiian Airlines, as well as a few smaller firms, but Kirby thinks there aren't any big merger opportunities left that would be appealing.
Having been involved in past airline mergers, Kirby stressed that any merger should only happen if it makes solid economic sense. He reiterated that United isn't looking to buy JetBlue Airways, and he reminded everyone that any merger would need backing from regulators, shareholders, customers, unions, and the management teams involved.
Earlier this year, Kirby even talked about the idea of a United-American merger with the Trump administration. But he admitted that the leadership at American isn't onboard with that proposal, which makes it impossible to move forward.
On the other hand, Delta Air Lines President Peter Carter mentioned that Delta is also steering clear of mergers or acquisitions. Instead, they're focusing on forming international partnerships and joint ventures as they look to grow in overseas markets.
Both Kirby and Carter pointed out that international travel is where the real growth opportunities lie for U.S. airlines, as the competition seems to be shifting more towards lucrative global routes rather than looking for domestic mergers.
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