American Airlines says it's not interested in merging with United. One analyst sees consolidation elsewhere.

By Steve Goldstein

American Airlines poured cold water over the idea of merging with United Airlines before a merger was even made.

American Airlines late Friday took the unusual step of rebuffing a merger before it was even made.

"American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines. While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers, and therefore inconsistent with our understanding of the Administration's philosophy toward the industry and principles of antitrust law," said the airline.

In early premarket trade, American shares (AAL) fell 3%, as did United (UAL), as both are affected by a rise in oil prices. American shares rose 14% last week while United rose 7%.

The statement came after a Bloomberg News report last week said United Airlines had taken the idea up of a merger with American directly to the Trump administration. United has not commented on that report.

The American Airlines statement went out of its way to say it appreciated the leadership and support of President Donald Trump and Transportation Sec. Sean Duffy.

Citigroup analyst John Godyn said a combination of United and American would have been too big for regulators to swallow, given a combined company would control more than a third of total domestic capacity as well as being disruptive to international ventures.

Godyn did say that industry mergers-and-acquisitions activity was likely and that JetBlue Airways (JBLU) and Alaska Air Group (ALK) have the most "strategic optionality" given the number of plausible scenarios.

-Steve Goldstein

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04-20-26 0424ET