Transportation Secretary Pete Buttigieg responded assertively on Thursday to airline executives who criticized the Biden administration for imposing excessive regulations on the airline industry. He highlighted that many airlines are still reporting substantial profits even as new regulations aimed at protecting passengers come into effect.
Buttigieg emphasized that regulations introduced by his department, such as automatic cash refunds for canceled flights, have widespread public approval and “will stand the test of time.” His remarks were prompted by an expression of hope from the CEOs of Delta Air Lines and Southwest Airlines that the return of a Donald Trump administration would lead to a more pro-business atmosphere. Delta’s CEO, Ed Bastian, referred to the Trump administration as “a breath of fresh air” for the industry.
In a news conference focused on Thanksgiving travel, Buttigieg acknowledged, “I know that some airline CEOs have expressed hopes that the next administration will be less passenger-friendly and more corporate-friendly than this administration.” He defended the passenger protection measures his department has implemented, asserting that they enjoy broad bipartisan support. He added, “I just don’t run into a lot of people who are against the idea that you ought to get an automatic refund without any hassle, for example.”
Buttigieg contended that robust consumer protections can actually benefit the airline business. He pointed out that certain companies are reporting healthy profits despite the introduction of these new consumer protection measures, which suggests the two can coexist harmoniously.
His comments seemed directed at Delta, which has consistently been one of the most profitable airlines in the U.S. In fact, Delta reported earnings of $2.6 billion during the first nine months of this year and $4.6 billion last year. However, the airline industry has faced strong opposition to many consumer protection measures initiated by the Biden administration, even going so far as to sue the Transportation Department over regulations requiring more transparency regarding fees on passengers. They are also resisting an ongoing inquiry into their frequent-flyer programs.
Bastian expressed expectations that a future Transportation Department under Trump would reassess the regulatory landscape, criticizing the current administration for what he termed “overreach” within the industry. Southwest Airlines’ CEO, Robert Jordan, recently indicated a desire for a Department of Transportation that might be less stringent in its regulatory practices.
Buttigieg pointed out that his department secured a $140 million settlement from Southwest following widespread flight cancellations in December 2022. He also noted that a similar investigation is ongoing regarding Delta, particularly due to approximately 7,000 flight cancellations triggered by technology issues in July. He encouraged airline executives to focus more on passengers’ needs rather than on their relationship with regulators.