Delta CEO Says Trump Administration’s Regulatory Approach Could Drive Positive Change

Delta Air Lines CEO Ed Bastian expressed that the Trump administration’s regulatory approach could offer a “breath of fresh air.”

Speaking to reporters ahead of Delta’s investor day, Bastian emphasized that President-elect Donald Trump campaigned on taking a “fresh look” at regulation and bureaucratic processes.

The U.S. Department of Transportation, led by Secretary Pete Buttigieg, has introduced several consumer-focused rules, some of which have drawn criticism from the airline industry. For example, one recent rule requires airlines to automatically issue cash refunds to passengers when a flight is canceled.

Bastian pointed out that the airline industry has experienced “a level of overreach” in the past four years.

The department is also investigating the airline industry’s profitable loyalty programs, which generate billions for carriers. Additionally, the DOT is examining how airlines can change the value of frequent flyer points without customer consent. The department is also investigating Delta’s handling of a major outage in July, which led to the cancellation of thousands of flights, and the airline’s slower recovery compared to competitors.

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Delta CEO Says Trump Administration’s Regulatory Approach Could Drive Positive Change

November 21, 2024

On Wednesday, Delta projected growth in both sales and profits in the coming months, citing strong consumer demand and substantial increases in household wealth since the pandemic.

Trump appointed former U.S. Congressman and Fox Business host Sean Duffy to head the Department of Transportation, but Duffy did not immediately respond to a request for comment.

Other U.S. airline CEOs have expressed optimism about the incoming Trump administration and have called for ensuring sufficient resources for improving air traffic control and other key infrastructure.

At the Skift Aviation Forum in Dallas, American Airlines CEO Robert Isom emphasized the need for investment in the industry, also noting the importance of streamlining visa approval processes to boost tourism to the U.S.

Sun Country Airlines CEO Jude Bricker echoed the sentiment in a recent interview, stating that the industry simply requires “stability and resources” from the DOT.

Industry experts and analysts also expect the new administration to be more receptive to airline mergers and consolidations.

Alaska Airlines’ acquisition of Hawaiian Airlines this year faced no opposition from the Biden administration. However, President Biden’s Justice Department successfully blocked two airline deals: the proposed merger between Spirit Airlines (which filed for Chapter 11 bankruptcy protection) and JetBlue Airways, and a partnership between JetBlue and American Airlines in the Northeast, which had been approved in the closing days of the Trump administration.

Sun Country’s Bricker noted, “Perhaps this administration would have a different stance. It certainly can’t get more against it.”

The current Department of Transportation did not immediately respond to a request for comment.