UAL Goes Silent On Airline Merger Speculation Following AAL Snub

• American Airlines confirmed earlier this month that it is not interested in any talks of a merger with rival UAL.
• A potential combination between American Airlines and United Airlines would create the largest airline. 
• Kirby also dismissed talks of the company opening a foreign hub anywhere in the world, including Europe.

United Airlines Holdings Inc (UAL) on Wednesday refused to confirm what it termed as “consolidation rumors” after rival American Airlines (AAL) pointedly denied any interest in a potential combination with the company.

“Finally, there's been a lot of press coverage regarding consolidation rumors. We've not commented specifically on those reports and aren't going to start today,” UAL CEO Scott Kirby said on Wednesday during the company’s first quarter earnings call. Kirby also dismissed talks of the company opening a foreign hub anywhere in the world, including Europe.

The comment comes on the heels of a Bloomberg report earlier this month that Kirby has floated a possible combination with American. According to the report, citing people familiar with the matter, Kirby pitched the idea to senior government officials.

A combination between American Airlines and United Airlines would create the largest airline on the planet and might pose antitrust concerns, Bloomberg then noted.

AAL Rejects Reports

However, American Airlines confirmed afterwards that it is not interested in any talks of a merger with rival UAL.

“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,” the company said in a statement.

How Did Retail Traders React?

On Stocktwits, retail sentiment around UAL stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘normal’ to ‘extremely high’ levels.

UAL stock has risen 35% over the past 12 months, while AAL stock gained 23%. 

Read More: TLRY, CGC, IGC Stocks Light Up On Trump Pot Reclassification Hopes This Week

For updates and corrections, email newsroom[at]stocktwits[dot]com.