In a CNBC interview on Tuesday, former President Donald Trump voiced strong opposition to a potential merger between United Airlines and American Airlines while suggesting the federal government should help facilitate a sale of struggling Spirit Airlines.
"I'd love somebody to buy Spirit, it's 14,000 jobs. Maybe the federal government should help that one out. I told my people," Trump told CNBC's Squawk Box. The comments come as the former president continues to weigh in on major corporate deals, even as his administration faces multiple foreign policy challenges that have eroded his political standing ahead of the midterms.
Merger Proposal Emerges from Industry Leaders
According to a Reuters report last week, United Airlines CEO Scott Kirby proposed merging his company with American Airlines during a February meeting with Trump about Washington Dulles International Airport's future. United and American ranked first and third respectively in 2023 revenue by passenger miles among U.S. carriers, according to Bureau of Transportation Statistics data. A combination would create the world's largest airline.
Trump dismissed the proposal as "a step too far" during his interview. "But with American, it's doing fine, and United is doing very well," he continued. "I don't like having them merge."
Regulatory Landscape Shifts Under Trump Appointee
The Federal Trade Commission, which must approve such mergers, has adopted a more merger-friendly posture under Chair Andrew Ferguson, a Trump appointee, than under his predecessor Lina Khan, who was appointed by President Biden. This shift comes as Trump continues to reshape financial regulatory bodies, including his controversial bid to replace Federal Reserve Chair Jerome Powell.
Several Democratic lawmakers have already signaled opposition to a United-American combination. Senator Ruben Gallego (D-Ariz.) stated simply on social media platform X: "That's gonna be a no." Matt Stoller, a researcher at the anti-monopolist American Economic Liberties Project, called such a merger "corporate crime" that is "now legal."
Spirit Airlines' Troubled Position
Spirit Airlines has faced significant challenges, having declined acquisition offers from Frontier Airlines and seen a separate bid by JetBlue blocked in federal court. Trump's suggestion of federal intervention to sell the airline represents an unusual approach to corporate consolidation, contrasting with his opposition to the larger carriers merging.
The former president's comments on airline mergers come amid broader economic concerns within his administration, including internal divisions over gas price forecasts as Middle East tensions create market uncertainty. His focus on preserving Spirit's 14,000 jobs aligns with his political messaging around employment, even as he faces criticism on other fronts.
Trump's willingness to involve the federal government in Spirit's potential sale while blocking the United-American merger illustrates his selective approach to corporate consolidation—one that appears focused on preserving specific jobs while preventing what he views as excessive concentration among industry leaders.
