Continental says no to merger

— -- Continental CEO Larry Kellner, in a message to employees late Sunday afternoon, said the airline's board followed management's recommendation in rejecting a merger path.

Talk of consolidation has swept across the U.S. airline industry since Delta and Northwest went public with their merger talks in January. That pair announced a merger agreement on April 14.

Kellner made it clear in his comments that Continental's management believes that it is stronger as an independent company than it would be if it merged.

"We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths — which we believe would be placed at risk in a merger with another carrier in today's environment," Kellner said.

Officials from United and US Airways have said nothing, but there have been multiple published reports in the last two weeks that United executives have been talking with counterparts at US Airways even as they continued negotiations with Continental officials.

United Airlines' parent, UAL, said on Sunday it would pursue all options to ensure a sustainable future.

"Ensuring you have the right partner is everything," UAL said in a statement. "We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders."