United Airlines CEO Scott Kirby confirmed on Monday that merger discussions with American Airlines Group Inc. have officially ended. This announcement follows American's decision to decline further engagement in the proposed combination. The merger aimed to broaden international service and reach smaller communities, according to Kirby, who expressed his disappointment that American did not pursue the opportunity.
Kirby stated the merger would have focused on growth rather than cost-cutting, a departure from previous airline consolidations. He also suggested it would have created tens of thousands of unionized jobs and supported U. S. aircraft manufacturing. United cited data indicating that 2025 ticket prices were 29% lower than pre-pandemic levels when adjusted for inflation. The carrier also pointed out that foreign airlines operate approximately 65% of long-haul seats into the U. S., despite only 40% of customers being foreign citizens.
Despite the end of merger talks, United Airlines recently reported strong financial results for the first quarter of 2026, exceeding analysts' expectations. The airline posted an earnings per share (EPS) of $1.19, surpassing the forecasted $1.08, and generated revenue of $14.6 billion, higher than the anticipated $14.39 billion. These results reflect United's strong pricing power and premium and loyalty momentum, despite facing sharply higher fuel costs.
Following the news, Freedom Broker lowered its price target for United Airlines from $143 to $125, while maintaining a Buy rating, citing concerns about fuel volatility. Conversely, BMO Capital raised its price target for United Airlines to $130 from $110, maintaining an Outperform rating, highlighting the airline's merchandising strength, loyalty program potential, and strong yield momentum as positive factors. United's stock has declined nearly 6% over the past week and is down 17% year-to-date, trading at $93 with a market capitalization of $30.2 billion.
