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United and American Airlines rise after Kirby merger with Trump

United Airlines and American Airlines stocks rose in premarket trading Tuesday, after United CEO Scott Kirby, according to sources, had reportedly pitched the idea of a merger between the two carriers to U.S. president Donald Trump back in February.

The merger of two major U.S. airlines could be the largest airline consolidation since more than a decade.

United States shares rose 2%, while American stocks grew by 4%.

The two stocks have both fallen in recent weeks as the U.S. - Israel war against Iran has sent jet fuel prices soaring. American is down 14.1%, and United is down 10.4% since the conflict began in late Feb.

Kirby brought up the idea at a White House meeting on February 25, which was focused on the future Dulles Airport in Washington, according to sources.

He said a combined airline would be able to "better compete on the international stage, where foreign carriers are in control of a majority long-haul capacity from and to the U.S. despite that most passengers were U.S. citizens.

Antitrust experts and industry?officials said that approval would be difficult, citing concerns about?competition, higher fares, lost jobs, and significant route overlaps in a highly concentrated U.S. air?market, which is dominated by just four large carriers.

United and American refused to comment and the White House didn't respond to requests for comments. (Reporting and editing by Harikrishnan Nair; Rashika Singh)

(source: Reuters)