US Airways has announced it has "discontinued" discussions with United Airlines regarding a potential merger between the two carriers.
Doug Parker, US Airways' CEO, said: "After an extensive review and careful consideration, our Board of Directors has decided to discontinue those discussions."
The US Airways statement was the first time the company admitted it had been in talks with United.
Parker said the airline remains a proponent for consolidation in the aviation industry.
"It remains our belief that consolidation makes sense in an industry as fragmented as ours. Whether we participate or not, consolidation that leads to a more efficient industry better able to withstand economic volatility, global competition and the cyclical nature of our industry is a positive outcome," he said.
"We are well along the road to near-term profitability and are well-positioned for sustainable, long-term success. As the industry becomes less fragmented and more stable, everyone will benefit."
With talks between United and US Airways at an apparent dead-end, reports say United may look at a merger with Continental Airlines.
www.usairways.com