United Airlines explored a potential merger with Delta Air Lines last year, according to a report from the Wall Street Journal. CEO Scott Kirby contacted Delta CEO Ed Bastian to discuss a possible combination. Delta executives reviewed the proposal and conducted early evaluations, but the discussions did not advance to formal negotiations. The talks ended without a deal.
Kirby stated that United would only consider combinations that create a stronger competitive platform rather than those designed primarily to reduce costs. Following the discussions with Delta, Kirby pursued a possible deal with American Airlines Group Inc. That effort faced public opposition and was ultimately rejected by American.
Both United and Delta surpassed Wall Street expectations in the second quarter despite higher fuel costs. Delta posted record revenue, while United raised its yearly earnings outlook. United reported adjusted earnings of $1.99 per share, representing 16% revenue growth. The airline also increased its full-year adjusted EPS forecast to between $9 and $11.
United improved profitability by cutting weaker routes, focusing on higher-value markets, and managing capacity more effectively. The International Air Transport Association lowered its 2026 global airline profit forecast to $23 billion from $41 billion due to higher fuel costs and disruptions in the Middle East.
The organization noted that rising expenses are putting pressure on profits and that steps like increasing ticket prices may not fully offset the impact.
United Airlines stock inched 0.06% lower overnight. Retail sentiment for the stock remained in bearish territory on Stocktwits. One user questioned whether United could pass higher costs into fares without weakening bookings. United and Delta stocks have gained 5% and 22% year-to-date, respectively. American Airlines stock has declined 5%.
