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   ----- Forwarded Message ----- From: "Airline Industry Report SmartBrief" 
<[email protected]> To: "[email protected]" <[email protected]> Cc:  Sent: Thu, 
May 28, 2026 at 13:06 Subject: United Airlines CEO rejects merger prospects   
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| With FAA nod, Boeing steps up 737 Max production pace |
| Created for [email protected] | Web Version |

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| May 28, 2026 |
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| News for the airline industry | SIGN UP ⋅   SHARE |

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| Top Airline News |

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| United Airlines CEO rejects merger prospects |

United Airlines CEO Scott Kirby has ruled out mergers for the foreseeable 
future after American Airlines CEO Robert Isom rejected the idea. Kirby also 
dismissed JetBlue Airways as a potential partner, citing profitability issues.
| Full Story: Simple Flying (5/27), Bloomberg (5/28) |


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| (AerialPerspective Images/Getty Images) |


| Southwest revises policy for larger passengers |

Southwest Airlines has announced plans to revise its "customer of size" policy 
after receiving significant backlash. The current policy requires passengers 
who need extra space to purchase additional seats in advance. However, 
Southwest now says it will allow these customers to obtain an extra seat at no 
additional cost at the airport, provided seats are available. This change aims 
to create a more seamless experience for passengers who require more room. 
Despite the revision, some travelers remain skeptical and have already switched 
to other airlines.
| Full Story: Simple Flying (5/28), New York Post (5/27) |


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| Spirit Airlines to auction LaGuardia slots in bankruptcy |

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| The Points Guy (5/28) |

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| RIC sets April passenger record |

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| WWBT-TV (Richmond, Va.) (5/27) |

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| What do you think? |

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| Poll: Will American Airlines’ tougher Basic Economy rules change how you book 
flights? |


| ✈️ Yes, fewer perks make it not worth it - 35% |


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| 💺 No, I always book the cheapest fare - 15% |


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| 🏅 Elite status should still come with benefits - 20% |


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| 🤔 I'll consider flying another airline - 30% |


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Sponsored Content from Deloitte Private |


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| Research-backed private company priorities |


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| Research-backed private company priorities |

Every quarter, 100 C-suite executives from private companies share what they're 
focused on—right now. Their answers are turned into Private Company Outlooks, 
giving you practical insights on everything from governance and growth to 
financials and talent. Learn more. |

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| Technology & Innovation  |

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| With FAA nod, Boeing steps up 737 Max production pace |

Boeing has received approval from the Federal Aviation Administration to 
increase production of 737 Max jets to 47 per month from 42. "It'll probably 
take us a few months of stabilization there. ... My guess is we continue to go 
up in rate," CEO Kelly Ortberg says. "It may take a little bit longer, but 
we're off and rolling now for the 47-a-month rate, and we should be there in 
the next couple months," Ortberg says. The process of reaching 52 per month 
could take six months.
| Full Story: CNBC (5/27) |


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| Sustainability |

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| SAF production unlikely to hit 2030 US target, study says |

The US aviation industry will likely fall short of its goal of 3 billion 
gallons of sustainable aviation fuel per year by 2030, according to a 
Washington State University study. The study projects production will reach 
only 2.1 billion gallons at best, citing challenges such as feedstock 
limitations, project delays and the higher profitability of renewable diesel.
| Full Story: Earth (5/27) |


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| Workforce  |

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| American plans to double India tech hub workforce |

American Airlines plans to double the workforce at its technology hub in 
Hyderabad, India, to 800 employees by early 2027. The expansion highlights the 
growing importance of India in global aviation technology, with the Hyderabad 
center focusing on software engineering, AI and cybersecurity.
| Full Story: Firstpost (India) (5/28) |


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| Policy & Regulatory |

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| DHS considers halting processing at airports in sanctuary cities |

The Department of Homeland Security is considering halting the processing of 
international travelers and cargo at airports in sanctuary cities that do not 
cooperate with federal immigration enforcement. Homeland Security Secretary 
Markwayne Mullin says that no final decision has been made but that plans are 
being drafted.
| Full Story: X (Formerly Twitter) (5/26), Reuters (5/26) |


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| Arnold Palmer Regional seeks federal aid to attract airline |

Arnold Palmer Regional Airport is seeking federal funding from the Small 
Community Air Service Development Program to attract a new commercial airline 
after Spirit Airlines ceased operations in April. The Westmoreland County 
Airport Authority has applied for a grant to replace service to destinations 
previously served by Spirit.
| Full Story: Trib Total Media (Tarentum, Pa.) (5/28) |


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| International Update  |

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| Azul expects quick approval for American partnership |

Azul expects antitrust immunity for a partnership with American Airlines to be 
approved within two months. The Brazilian airline, which exited Chapter 11 
bankruptcy in February, has received commitments of $100 million each from 
American and United Airlines, making them its largest shareholders. "Having two 
big brothers on a daily basis is a huge advantage," Azul President Abhi Shah 
says. "It's a vote of confidence in our business plan."
| Full Story: Aviation Week Network (tiered subscription model) (5/27) |


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| SmartBreak: Question of the Day |

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| The Nobel Peace Prize is often awarded to people, but organizations have also 
won. Which organization won it in 1944? |


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|  | Amnesty International |

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|  | Center for Civil Liberties |

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|  | International Committee of the Red Cross |

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|  | World Food Programme |

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| ICYMI: The most popular stories from our last issue |

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| United enforces headphone use policy on flights |

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| TheTravel (5/26) |

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| Delta to offer Salt Lake City-Sonoma County flights |

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| The Points Guy (5/26) |

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| FAA issues $165K penalty against Alaska Airlines over passenger intoxication |

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| Anchorage Daily News (Alaska) (5/26) |

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| Airline worker asks for courtesy amid passenger frustration |

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| TheTravel (5/27) |

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| New uniform rules spark pushback as Alaska, Hawaiian align policies |

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| West Hawaii Today (Kailua-Kona, Hawaii) (5/26) |

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| About the editor |

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| Angie Giroux |


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| Angie Giroux |


With major airline CEOs rejecting new mergers, the industry may be shifting 
away from consolidation toward greater focus on profitability and operational 
performance. That could preserve competition among carriers, but it also raises 
questions about how smaller airlines will survive in an increasingly 
challenging market. What do you think -- is it better for the industry to avoid 
more mega-mergers, or are partnerships and consolidation still necessary? Drop 
me an email at [email protected].
Thanks for reading. We're glad to have you on board! ✈️ |

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