United Airlines CEO Scott Kirby has raised the possibility of a merger with American Airlines in discussions with Trump administration officials, according to sources familiar with the matter. The idea is gaining attention following remarks from Transportation Secretary Sean Duffy suggesting the administration may be open to further consolidation in the aviation industry.

While no formal proposal has been announced, such a merger would create one of the largest airline combinations in U.S. history, potentially controlling close to half of the domestic market. Analysts say that level of concentration would likely face significant regulatory scrutiny over concerns about competition and consumer costs.

Kirby has previously spoken about the need for stronger U.S. carriers to compete globally, particularly against foreign airlines that dominate long-haul international routes. In earlier remarks, he pointed to an imbalance in international travel markets and emphasized the goal of building a more competitive American-based airline capable of matching global rivals on service and scale.

Both United Airlines and American Airlines declined to comment publicly on the reported discussions.

Industry observers note that, beyond regulatory hurdles, a merger of this scale would require major concessions to gain approval, potentially limiting its appeal. Some analysts suggest the idea may be more strategic signaling than an imminent transaction.

Separately, United has indicated interest in expanding through acquisitions if market conditions weaken competitors. Kirby recently suggested that sustained high operating costs, including fuel prices, could create opportunities to acquire assets or potentially other airlines.

One airline frequently mentioned in industry speculation is JetBlue, which could become a target if financial pressures mount. However, no formal moves have been confirmed.

Labor representatives have reacted cautiously to the merger concept. A spokesman for the Allied Pilots Association, which represents American Airlines pilots, described the idea as “intriguing” while also highlighting ongoing concerns about American’s operational performance.

Despite the discussion, many experts believe a United-American merger remains unlikely due to regulatory, financial, and operational challenges. Still, the emergence of the idea underscores ongoing pressure within the airline industry as companies look for ways to strengthen their position in a competitive global market.