United CEO Makes Surprising Comments About JetBlue Merger

United Airlines CEO Scott Kirby was asked about the possibility of a merger with JetBlue, and his answer was surprisingly candid…

United CEO seems open to JetBlue merger, or something?

It has been a fascinating time for the airline industry. While Delta and United have been doing really well overall (though they’re now seeing demand falling), other US airlines are struggling. That’s because even Delta and United aren’t making most of their profits from actually transporting passengers.

So there has been a lot of talk about what industry consolidation we could see, if any. There have been a lot of rumors about United being interested in acquiring JetBlue, especially given United’s desire to return to New York (JFK), and expand there.

So at the JP Morgan Conference earlier this week, airline analyst Jamie Baker asked United CEO Scott Kirby about his view on industry consolidation, beyond a possible deal between Frontier and Spirit. Baker prefaced the question by saying “you’re the only CEO that may give us a somewhat direct answer to this question.” Baker was right, and the answer is quite something:

I don’t know. I think it’s probably less likely than others think. JetBlue is the obvious candidate. Joanna is going to be here later today. So you can ask her what she thinks. It’s possible. But there’s a lot of challenges, like I look at it from United’s perspective. We have a great plan that is working and mergers are so hard. They’re disruptive.

Your technology team spends two years on the sideline just integrating like I bet a lot of you use the United app. I bet you all think it’s the best app in the world in airlines because it is. Like that kind of investment just gets harder to do. We got some super cool stuff coming for customers this year. That stuff just gets harder and harder to do.

And at United, well, when the business based business plan is working, like the hurdle to go do it, we don’t need a deal for sure. The hurdle to go do a deal gets a whole lot higher. That said, at least at United, I would like to have a bigger presence on the other side of the river at JFK. But man, all the headache, all the brain damage of buying a whole airline to get that, that’s a lot to do. So, yes, really, I think the ball is going to be in JetBlue’s court.

They’re working out a lot of respect for them. They’re working hard. They’re also an airline that focuses on brand loyalty. So from the customer perspective, they have a lot of those sort of core DNA things that are expected there. Also competing with another airline, JFK and Boston that has that too.

So it’s a tough position for it to be in. So it’s sort of their decision on how to sort through that. That’s the only one that I think really is potentially in play one way or another.

What should we make of Kirby’s merger answer?

I have so many thoughts here. First of all, I just love listening to Kirby. Not only is he obviously such a smart guy who has a pulse on the industry, but unlike so many other executives, he’s willing to say what he really thinks, for better or worse.

That’s such a contrast to his two biggest rivals. Delta CEO Ed Bastian typically has very carefully rehearsed remarks, and rarely says anything you wouldn’t expect, or which rocks the boat. Meanwhile American CEO Robert Isom just typically doesn’t have a whole lot useful to say, since American management doesn’t exactly have a great pulse on the industry (though Isom seems like a super nice guy).

With that in mind, Kirby’s answer is quite something. He points out that mergers are a lot of work and prevent investments and progress in other areas, which is of course true. But he acknowledges that JetBlue is the obvious candidate for any potential merger activity with United, and says that “I think the ball is going to be in JetBlue’s court.” Like, are we all processing that? That’s quite a statement to make, and one wonders what exactly he meant by that.

United’s financial performance has been improving nicely, and United doesn’t need JetBlue. However, two things are for sure.

First of all, Kirby is obsessed (not in a bad way) with returning to New York (JFK), and United can’t easily do that alone. He has been saying that for years, and thinks that leaving JFK was one of United’s worst decisions.

Second of all, Kirby is probably the most ambitious and competitive guy in US aviation. We know how badly Kirby wants United to rise to the first spot and beat Delta, and JetBlue has a huge presence in two Delta hubs. There’s nothing Kirby would love more than to be able to compete directly with Delta in those markets.

We also know that both Boston and New York have affluent populations, and have a lot of potential with credit cards, and that’s a key metric by which United measures hub profitability.

Lastly, we really have to give @xJonNYC credit for his consistent insights. Several weeks ago, he shared a rumor about United being interested in JetBlue. He didn’t claim that anything was imminent, or that any deal was close to being reached. But as usual, he ended up being correct, because clearly United is interested. That’s not to say anything will happen, but that’s just the truth. As much as people like to doubt him, he has an amazing track record.

Oh yeah? Gee, sounds like a rumor I might have heard. "[more industry consolidation?] And does United play a role in it? Scott Kirby: I don’t know. I think it’s I probably think it’s less likely than others think. JetBlue is the obvious candidate… (more..) www.investing.com/news/transcr…

[image or embed]— JonNYC (@xjonnyc.bsky.social) March 13, 2025 at 11:37 AM

Bottom line

United CEO Scott Kirby was asked if he sees potential for any further airline consolidation. He stated that if there were to be a deal, it would be with JetBlue, and he said “the ball is going to be in JetBlue’s court.”

While a merger is a huge and challenging headache, we know the strategic value that JetBlue holds. Kirby desperately wants United to return to JFK, and also wants to overtake Delta, and it seems like a JetBlue acquisition could help make that possible.

What do you make of Kirby’s comments about United possibly acquiring JetBlue?