The CEO of Delta Air Lines has expressed optimism about the incoming Trump administration, describing it as a potential “breath of fresh air” for the airline sector, which he believes has faced excessive government intervention under the Biden administration.
The airline industry has been critical of the consumer-protection rules that were implemented during Biden’s presidency. Additionally, Delta is currently dealing with a federal examination regarding its sluggish recovery from a significant global technology failure that occurred earlier this summer.
During an investor day event in Atlanta, CEO Ed Bastian addressed the media and Wall Street analysts, expressing his views ahead of the new administration. He reflected on Trump’s campaign promise to downsize the federal government and reevaluate the existing regulatory framework. Bastian stated, “I think that will be a breath of fresh air” in reference to potential regulatory reforms.
Delta is utilizing this investor day to bolster confidence in its operations, having reported a substantial profit of $2.6 billion in the first three quarters of this year and an impressive $4.6 billion last year. The airline also reaffirmed its forecast of an adjusted profit in the fourth quarter ranging between $1.60 and $1.85 per share. Furthermore, it anticipates a modest increase in revenue of mid-single digits in 2025 compared to 2024, aligning with analysts’ projections of around 6%.
Consumer watchdogs, however, are apprehensive about a second Trump administration, worrying it might attempt to roll back beneficial rules such as those that enforce automatic refunds for canceled flights and transparency in fare advertising, which requires airlines to include all mandatory fees and taxes from the outset.
Recently, the airline industry organization has endorsed Trump’s nominee for transportation secretary, former Wisconsin Representative Sean Duffy, who has a history of advocating for U.S. airlines and their labor organizations during previous disputes.
Bastian did not identify specific regulations he believes represent government overreach, but it’s known that Delta, along with other airlines, is pursuing legal action against the Transportation Department to contest a rule mandating that airlines disclose additional fees to passengers. The group Airlines for America contends that this regulation could overwhelm consumers with excessive details; a federal appeals court has even halted its enforcement pending the resolution of the airlines’ legal challenge.
Moreover, airlines are opposing a recent investigation concerning frequent-flyer programs launched by the administration. This year, Delta has generated over $2.4 billion in revenue from its loyalty scheme.
One of the more significant concerns for Delta is a Transportation Department inquiry into the airline’s inadequate response to the earlier technology interruption. Transportation Secretary Pete Buttigieg pointed out that the investigation is focused on whether Delta’s handling of passengers amid canceled and delayed flights breached federal consumer-protection statutes.
In a related incident, Southwest Airlines reached a $140 million settlement following a prior investigation into a larger service disruption in December 2022. Initially, Delta indicated its intention to fully cooperate with the ongoing investigation. In a later development, the airline filed a lawsuit against CrowdStrike, the cybersecurity firm tied to the technology failure that led to the disruptions.
