United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) and American Airlines Group Inc (NASDAQ:AAL, XETRA:A1G) have been drawn into merger speculation following a report first published by Bloomberg, which cited two unnamed sources familiar with the matter as saying that a potential combination between the carriers was briefly raised during a high-level meeting earlier this year.
The Bloomberg report said United Airlines CEO Scott Kirby floated the idea during a February meeting that included senior US officials and US President Donald Trump.
The meeting was primarily focused on operational issues involving Washington Dulles International Airport, with the merger concept reportedly mentioned toward the end of the discussion.
The suggestion was reportedly presented as a strategic argument that a combined carrier could better compete globally against large international airlines.
Both United and American have declined to comment on the report, and the White House has not responded to media inquiries.
If pursued, a merger between the two airlines would represent one of the most significant consolidations in US aviation history.
Shares of American Airlines jumped 9.2% on the report, while United Airlines stock was up 4.4%.