American Airlines (AAL) has dismissed a merger rumor with United Airlines (United Airlines), stating it is not engaged in any discussions regarding a merger. The airline argued that a merger with United would be negative for competition and consumers. The news of the merger sparked speculation after United CEO Scott Kirby reportedly mentioned it with American in a February meeting with President Trump. Once American publicly rejected the idea, it was pushed back to the question of whether the airline's standalone plan could provide enough value for its recovery story. The company's recent results showed that it reduced total debt by $2.1 billion in 2025 and expects more than $2 billion in free cash flow in 2026. Despite the merger controversy, American's more realistic story is to improve revenue quality, grow free cashflow, and keep cutting debt without a transformational transaction.