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(Sharecast News) - Shares in American Airlines were flying lower in pre-market trade on Monday after the Fort Worth-based carrier quashed speculation regarding a rumoured merger with United Airlines.
In a statement to the market late on Friday, the firm said it was "not engaged with or interested in" any discussions regarding a potential tie-up with rival United.
The speculation comes reports emerged that United boss Scott Kirby had spoken about a potential merger to president Donald Trump.
However, despite American Airlines' denial of discussions, a bipartisan group of senators have asked the companies to provide details of any potential talks amid fears that a combination could lead to higher airfares or have an impact on routes and employees.
"While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers, and therefore inconsistent with our understanding of the Administration's philosophy toward the industry and principles of antitrust law," American said in a statement.
"Our focus will remain on executing on our strategic objectives and positioning American to win for the long term. We look forward to continuing to work collaboratively with the Administration as it takes steps to strengthen the broader airline industry."
After rising 4.2% to $12.78 on Friday as oil prices crashed, American futures were down 3.1% at $12.39 by 1318 BST, while United futures fell 2.4% at $99.32.
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