By Rajesh Kumar Singh and Nandan Mandayam
CHICAGO, May 27 (Reuters) - United Airlines CEO Scott Kirby said on Wednesday the carrier does not expect to pursue airline consolidation for the foreseeable future, weeks after American Airlines rebuffed his approach for a potential merger.
Speaking at a Bernstein investor conference, Kirby said he had long believed the "big transaction" United tried to pursue was the only deal that made economic sense for the carrier. But he said such a transaction required
a willing partner, "which we clearly don't have."
"So I don't think that United at least is going to participate in any consolidation for any time I can see in the foreseeable future," Kirby said.
Kirby said in April he had approached American about a potential merger, but American declined to engage. Reuters previously reported that he raised the idea of a combination with American during a meeting with U.S. President Donald Trump in late February, raising the prospect of the biggest U.S. airline consolidation move in more than a decade.
American CEO Robert Isom has rejected a merger with United as anti-competitive, saying American was focused on rebuilding its Chicago hub, improving revenue and pursuing partnerships, including potentially deeper ties with Alaska Airlines.
Asked about investor speculation that United could pursue a smaller deal after failing to secure a larger transaction, Kirby called the idea "idiotic" and said that was "definitely not the plan." He also pushed back on speculation about JetBlue, saying he did not see how United could improve JetBlue's margin enough to make a deal work.
Kirby also said he is increasingly confident United can reach double-digit pre-tax margins next year, as easing oil prices and resilient demand help it recover more of the hit from higher fuel costs. He said United was on track to deliver double-digit margins this year before the Iran war drove up fuel prices.
(Reporting by Rajesh Kumar Singh in Chicago and Nandan Mandayam in BengaluruEditing by Nick Zieminski)
