Lee, Warren Press Airline CEOs on Potential United-American Merger as Airfare Continues to Skyrocket for Everyday Travelers

WASHINGTON - U.S. Senator Mike Lee (R-UT), Chairman of the Senate Subcommittee on Antitrust, Competition Policy, and Consumer Rights, along with Senator Elizabeth Warren (D-MA), pressed the CEOs of United Airlines and American Airlines on recent reports of a potential merger between the two air carrier giants. The senators penned a bipartisan letter warning that a United-American merger would create the largest airline in the world, exacerbating concerns that consolidation of the airline industry could harm consumers.

"A United-American merger could lead to increased prices for consumers, at a time when airlines are already squeezing flyers through higher fares and fees," wrote Senators Mike Lee and Elizabeth Warren.

Last year, United and American were the world's two largest airlines by available capacity. A merger would result in the combined entity owning over 2,800 aircrafts and obtaining the ability to serve 405 million passengers - far more than any other air carrier in the world.

If United and American were to merge, airlines would face less competitive pressure from rivals to keep the cost of flying down, likely leading to even higher fees and costs for travelers. Decreased competition between airlines leads to higher ticket prices and hurts smaller airlines' ability to access airport gates. Low-cost carriers such as Spirit and Southwest already struggle to compete in the face of United's tactics at airports such as O'Hare.

A merging of United and American could also result in fewer flights if the combined entity deems current routes less profitable, reducing options for consumers. In particular, the merger would create a hub overlap at Chicago O'Hare and expand United Airlines' access to Dallas/Fort Worth, which is not currently a United hub.

The senators also raised concerns over potential job loss at a combined airline. Significant consolidation often suppresses wages and compensation across the airline industry as it reduces the number of competing employers bidding for workers.

"A United-American merger would enable the massive combined carrier to exercise monopsony power over airline workers, potentially suppressing wages and benefits industry-wide," wrote Senators Mike Lee and Elizabeth Warren.

To further understand United's and American's intentions, the senators asked that both airlines respond with more information regarding the nature of any discussions about a deal, whether hostile or negotiated, and whether a potential merger would affect fares for fliers, lead to higher ancillary fees, and create job losses.

Access the full text of the letter here.

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