United Airlines CEO Scott Kirby confirmed Monday that the carrier approached American Airlines about a merger that would have created the world's largest airline, but American rebuffed the overture. In a statement, Kirby acknowledged for the first time he had broached a combination, claiming it would have generated significant economic benefits for the United States. American responded by publicly closing the door on any merger discussions.

Reports surfaced this month that Kirby had floated the proposed deal to President Trump and Transportation Secretary Sean Duffy, who have expressed openness to airline consolidation. Kirby, a former senior executive at American, argued the combined carrier would help address what he called a "trade deficit" with foreign airlines carrying disproportionate shares of Americans flying home from international destinations. American's CEO Robert Isom—who previously worked alongside Kirby at American and US Airways—said the merger would be "negative for competition and for consumers."

The failed merger attempt comes as smaller carriers face financial pressure. Spirit Airlines is in its second bankruptcy in two years, with Trump saying he would "love somebody to buy" the discount carrier, which may be in advanced talks for a $500 million federal bailout. Aviation analysts say the administration's willingness to approve consolidation could accelerate deal-making across the industry.