United Sees Asset Opportunities as Rising Fuel Costs Pressure Rivals

United Airlines CEO Scott Kirby says the carrier remains interested in acquiring airport assets such as gates and slots if rising fuel prices place additional pressure on weaker competitors, though he believes major airline mergers are unlikely in the near term.

Speaking during the International Air Transport Association (IATA) Annual General Meeting in Rio de Janeiro, Kirby said United would continue looking for strategic opportunities to strengthen its network but is not actively pursuing large-scale consolidation following the airline's unsuccessful effort earlier this year to explore a merger with American Airlines.

"I think consolidation is unlikely for United," Kirby said. "That doesn't mean we won't still be in the market to buy assets."

Kirby's comments come as airlines worldwide grapple with higher fuel costs and growing concerns about profitability. According to Kirby, the current environment is widening the gap between carriers with strong customer loyalty and premium brands and those that continue competing primarily on price.

Several airline executives attending the IATA meeting echoed concerns that rising fuel prices could place additional strain on smaller or financially weaker operators. Kirby argued that airlines such as United and Delta Air Lines have positioned themselves to weather those pressures through investments in technology, service, reliability and customer experience.

"Customers care about the technology, the service, the reliability, the product," Kirby said. "They want a great experience. They don't just want a seat."

United expects stronger pricing to eventually offset much of the impact of higher fuel costs, and Kirby said demand remains resilient despite fare increases.

While ruling out major mergers for now, Kirby indicated United would remain open to acquiring strategic assets that become available if industry conditions deteriorate. Airport gates, takeoff and landing slots, and other operational assets have become increasingly valuable as carriers seek growth opportunities at constrained airports.

Kirby also downplayed the likelihood of further industry consolidation, noting that large airline mergers face significant economic, operational and regulatory hurdles.

The comments come amid ongoing debate about competition within the U.S. airline industry. Kirby rejected suggestions that larger carriers are squeezing out rivals, arguing instead that market leaders are benefiting from years of investment in products and services that attract loyal customers.

For airports and ground service providers, any shift toward asset acquisitions rather than full airline mergers could still reshape competitive dynamics at key hubs, particularly if financially stressed carriers begin shedding gates, slots or other operational infrastructure.