United CEO Says $1.5 Billion US Airline Merger Wave Has Ended
Updated
Updated · Flightglobal · Jun 7
United CEO Says $1.5 Billion US Airline Merger Wave Has Ended
3 articles · Updated · Flightglobal · Jun 7
Summary
Scott Kirby said he sees no further meaningful US airline consolidation after Allegiant’s $1.5 billion purchase of Sun Country closed in May, adding that deals should not be pursued without a clear economic case.
His view follows American Airlines’ rejection of a potential tie-up with United in April and Kirby’s own dismissal in May of speculation about a JetBlue deal.
Other major carriers have also signaled little appetite for mergers: Alaska says it is focused on finishing Hawaiian integration, while American and Delta have emphasized internal execution or international growth.
The stance comes as airlines reshape networks after Spirit Airlines collapsed on 2 May, with Frontier and JetBlue among the most aggressive in adding flights to capture displaced demand.
Kirby also said he does not expect additional US airline failures over the next two years, suggesting carriers are shifting from merger talk to competing for share in a changed domestic market.