United Airlines CEO says big merger unlikely after American rebuff, asset buys possible

Article excerpt

United Airlines CEO Scott Kirby ruled out a major merger after American Airlines rejected his advances, but said the carrier remains open to smaller acquisitions. Kirby told investors that United expects higher fares will help it recover from the financial hit of surging fuel costs later this year, betting that passengers will pay more despite rising ticket prices. The comments suggest United is pivoting its growth strategy toward buying assets piecemeal rather than pursuing a transformative combination with a rival carrier.