United Airlines Holdings Inc. (UAL  ) CEO Scott Kirby indicated that the airline is open to acquiring airport slots, gates, and other strategic assets from struggling rivals. In a conversation with Reuters on Sunday, on the sidelines of the International Air Transport ​Association's (IATA) annual meeting in Rio de Janeiro, Kirby dismissed the likelihood of a major consolidation deal following the rejection of a merger proposal from United by American Airlines Group Inc. (AAL  )earlier this year, a topic Kirby had also broached with President Donald Trump.

Kirby defended the proposed merger, arguing it would have been advantageous for consumers. However, he conceded that such a large and unconventional transaction would necessitate the backing of American's management, which was not forthcoming.

Asked whether a Chapter 11 filing would make JetBlue Airways Corp. (JBLU  ) a more attractive acquisition target, Kirby said such a scenario was unlikely given the carrier's cash reserves and unencumbered assets.

He also brushed off IATA Director General Willie ⁠Walsh's criticism that large U.S. carriers are edging out competition, and said United and Delta Air Lines Inc. (DAL  ) are outperforming rivals by investing in strong brands and customer-focused products. He added that United's key advantage is its higher operating profit, which enables continued investment while some similarly sized competitors are only breaking even.

"Customers ​care about the technology, the service, the reliability, the product....They don't ​just want a ⁠seat," said Kirby.

Fuel Costs Threaten Airline Profits

Earlier this year, United had approached American about a merger, believing it could deliver significant customer benefits. However, American declined to engage, "publicly closing the door", effectively ending any path forward without a willing partner.

The IATA predicted a sharp decline in airlines' profits this year due to elevated jet fuel prices. It is estimated that these companies would earn about half of the collective earnings it had previously predicted. Despite the warning on margins, Kirby expressed faith in United's capacity to bounce back later this year.

After Spirit Airlines' collapse last month, IATA also warned that more budget carriers could fail this year as soaring jet fuel prices, driven by the war in Iran. IATA's Willie Walsh warned that carriers could trim unprofitable routes and keep fares elevated.