Delta Air Lines Stock Gains on Report of Rejected United Merger Proposal

Delta Air Lines (NYSE: DAL) shares gained more than 2.9% in pre-market trading following a Wall Street Journal report that United Airlines had made a secret merger proposal to the company in 2025, which Delta ultimately rejected.

Proposal Details

According to the report published Sunday, United Airlines CEO Scott Kirby approached Delta CEO Ed Bastian last year to explore a combination that would have created the world's largest airline. The potential entity would have commanded a market capitalization approaching $100 billion and controlled roughly half of the U.S. air travel market.

Delta conducted preliminary due diligence on the offer but walked away from the deal. Insiders cited what they described as "nearly insurmountable antitrust obstacles" as the primary reason for the rejection. The report also noted that United subsequently approached American Airlines with a similar proposal, which was also turned down, underscoring the significant regulatory hurdles to further consolidation among major U.S. carriers.

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Market Impact and Outlook

The disclosure of the rejected offer has reinforced investor perception of Delta's strong strategic position and dominance within the industry. The news acts as a reminder of the airline's valuation at a time when its stock already has strong backing from Wall Street analysts.

In recent weeks, several investment firms—including Bernstein, Citi, TD Cowen, Barclays, and Wells Fargo—have issued Buy ratings and positive price targets. This sentiment follows Delta's strong second-quarter earnings report on July 10, where it beat expectations and reaffirmed its full-year adjusted earnings per share (EPS) guidance, citing record quarterly revenue and resilient demand for premium travel.