Delta CEO says the Trump administration will reverse government ‘overreach’ seen under Biden

Author of the article:

The Associated Press

David Koenig

Published Nov 20, 2024  •  2 minute read

FILE - Delta Air Lines CEO Ed Bastian talks at the new Terminal C at LaGuardia Airport on Oct. 29, 2019 in New York. Photo by Mark Lennihan /THE ASSOCIATED PRESS

The chief executive of Delta Air Lines says the incoming Trump administration will be a “breath of fresh air” for airlines after what he called government “overreach” under President Joe Biden.

The airline industry has chafed under consumer-protection regulations imposed by the Biden administration. And Delta is facing a federal investigation into its slow recovery from a global technology outage this summer.

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Delta CEO Ed Bastian made the comment as he and fellow Delta executives prepared to host Wall Street analysts at an investor day Wednesday in Atlanta.

Bastian noted that President-elect Donald Trump campaigned on a pledge to reform the federal government and reduce its size.

The airline executive said Trump promised “to take a fresh look at the regulatory environment, the bureaucracy that exists in government, the level of overreach that we have seen over the last four years within our industry. I think that will be a breath of fresh air.”

Delta is using its investor day to build support for the company, which reported a profit of $2.6 billion in the first nine months of this year after earning an industry-leading $4.6 billion last year.

The airline stood by its previous forecast that adjusted profit in the fourth quarter will be between $1.60 and $1.85 per share. The company said its 2025 revenue will rise by a mid-single-digit percentage over 2024. Analysts expect a 6% increase, according to a FactSet survey.

Consumer advocates are wary of a second Trump administration, fearing that it could try to roll back a rule requiring automatic refunds after canceled flights and another that requires airlines to advertise the full price of fares upfront, including mandatory fees and taxes.

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On Monday, the airline industry trade group praised Trump’s pick for transportation secretary, former Wisconsin Rep. Sean Duffy. Duffy, a former reality TV star who is co-host of “The Bottom Line” on Fox Business, lobbied for U.S. airlines and their unions during a dispute with Persian Gulf carriers.

Bastian did not specify which Biden regulations he considered overreach, but Delta and other carriers are suing the Transportation Department to kill a rule requiring greater transparency over fees that the carriers charge their passengers.

The group Airlines for America said the rule would confuse consumers by giving them too much information. An appeals court panel blocked enforcement of the rule while the airlines’ lawsuit goes ahead.

Airlines also oppose an inquiry that the administration recently launched into their frequent-flyer programs. Delta has received more than $2.4 billion in revenue from its loyalty program so far this year.

But the hardest blow against Delta could come from a Transportation Department investigation into the airline’s slow recovery from a technology outage in July. Transportation Secretary Pete Buttigieg said investigators were focusing on whether Delta’s treatment of passengers affected by canceled and delayed flights violated federal consumer-protection rules.

Southwest Airlines reached a $140 million settlement after a Transportation Department investigation into a similar but larger breakdown in service in December 2022.

Delta initially said it was cooperating with the investigation. In October, Delta sued CrowdStrike, the cybersecurity provider whose faulty upgrade to Microsoft computers triggered the outage.

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