The CEO of Delta Air Lines expresses optimism about the incoming Trump administration, believing that it will bring a positive change for airlines. He views the previous government’s actions as overreaching and looks forward to a new approach.
The Biden administration’s consumer-protection regulations have been a source of frustration for the airline industry. Additionally, Delta is currently under investigation by federal authorities for its sluggish recovery following a widespread technology outage earlier this year.
During an investor day in Atlanta, Delta CEO Ed Bastian expressed his thoughts on the upcoming event. He mentioned this as he and other Delta executives were getting ready to welcome Wall Street analysts.
Bastian observed that President-elect Donald Trump ran his campaign promising to revamp the federal government and decrease its size.
According to the airline executive, Trump has made a commitment to reassess the regulatory environment and government bureaucracy that has plagued our industry for the past four years. The executive believes that this fresh perspective will bring much-needed relief and alleviate the excessive interference we have experienced.
Delta is leveraging its investor day to garner support for the company. In the first nine months of this year, Delta reported a profit of $2.6 billion, following its impressive industry-leading earnings of $4.6 billion last year.
The airline reaffirmed its earlier prediction that the adjusted profit for the fourth quarter will range from $1.60 to $1.85 per share. Additionally, the company stated that its revenue for 2025 is expected to increase by a mid-single-digit percentage compared to 2024. Analysts surveyed by FactSet anticipate a 6% growth.
Consumer advocates have expressed concerns about the potential impact of a second Trump administration. They worry that such an administration may attempt to reverse important regulations, such as the rule that mandates automatic refunds for canceled flights and the requirement for airlines to advertise the complete price of fares upfront, including all necessary fees and taxes.
The airline industry trade group expressed their support for President Trump’s choice for transportation secretary, former Wisconsin Rep. Sean Duffy. Duffy, known for his role on the reality TV show and co-hosting “The Bottom Line” on Fox Business, actively advocated for U.S. airlines and their unions during a contentious conflict with Persian Gulf carriers.
Bastian did not provide specific details about which Biden regulations he believed to be overreach. However, Delta and other airlines are currently involved in a lawsuit against the Transportation Department in an attempt to eliminate a rule that mandates increased transparency regarding the fees imposed on passengers by the carriers.
The Airlines for America group expressed concerns about the rule, stating that it may overwhelm consumers with an excessive amount of information. However, an appeals court panel has temporarily halted the enforcement of the rule, pending the outcome of the airlines’ lawsuit.
Airlines are also against the inquiry initiated by the administration into their frequent-flyer programs. Delta, for instance, has generated over $2.4 billion in revenue from its loyalty program in the current year.
The Transportation Department is currently investigating Delta Airlines for its sluggish recovery from a technology outage in July. Transportation Secretary Pete Buttigieg has stated that the investigation will primarily focus on determining whether Delta’s handling of passengers impacted by canceled and delayed flights violated federal consumer-protection regulations.
Southwest Airlines has agreed to a $140 million settlement following an investigation by the Transportation Department. This investigation was conducted in response to a significant breakdown in service that occurred in December 2022.
Delta initially stated that it was fully cooperating with the investigation. However, in October, the company took legal action against CrowdStrike, the cybersecurity provider responsible for the faulty upgrade to Microsoft computers that caused the outage.