American Airlines (AA, Dallas/Fort Worth) and Alaska Airlines (AS, Seattle Tacoma International) are in preliminary discussions to broaden their existing partnership, focusing on bringing Alaska into American’s transatlantic and transpacific joint business arrangements, Reuters reported, quoting people with knowledge of the matter.

The talks are at an early stage and could change. A deal could allow both carriers to coordinate schedules and fares and share revenue on international routes. For Alaska, and subsidiary Hawaiian Airlines, it would also allow it to enter into business with American’s transatlantic and Pacific partnerships with British Airways and JAL - Japan Airlines.

While the idea of a merger was reportedly discussed, it did not gain any traction, Bloomberg reported.

“As we go forward, we’ll make sure that anything that we do complies with our scope clauses,” American’s chief executive Robert Isom said in a call with analysts. “I feel good about where our relationship is and what happens next.”

There is no set timeline for when the preliminary discussions could result in a formal proposal. Any such expansion would require approval from the United States Department of Transportation.

The talks come as the US aviation industry struggles with rising fuel prices, and separate stories and headlines surface including the Trump administration pondering a rescue of Spirit Airlines; United Airlines’ CEO mulling a merger with American (denied by American) and confirming it is considering buying assets from an unnamed airline; JetBlue Airways denying the possibility of bankruptcy in 2026 but securing USD500 million in fresh capital (extendable to USD750 million); and the US transportation secretary saying he believes there is room for further consolidation in the market.

Alaska Air Group told Reuters that it is currently focused on continuing with the integration of Hawaiian Airlines into the group. Chief executive Ben Minicucci said he remains “super excited about our organic growth plan.”