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United Airlines Holdings Inc (NASDAQ: UAL, XETRA: UAL1) and American Airlines Group Inc (NASDAQ: AAL, XETRA: A1G) have become the focus of merger speculation after a Bloomberg report, citing two unnamed sources, said a potential combination between the carriers was briefly raised during a high-level meeting earlier this year.
Bloomberg said United Airlines CEO Scott Kirby floated the idea during a February meeting that included senior U.S. officials and U.S. President Donald Trump. The meeting, according to the report, 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 presented as a strategic argument that a combined airline could better compete globally against large international carriers.
Both United and American declined to comment on the report. The White House did not respond to media inquiries.
Following the report, shares of American Airlines rose 9.2%, while United Airlines shares were up 4.4%.
If pursued, a merger between the two airlines would be among the most significant consolidations in U.S. aviation history.
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