Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Delta CEO praises Trump as a ‘breath of fresh air’

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

David Koenig
Friday 22 November 2024 13:30 EST
Delta CEO Ed Bastian claims Donald Trump will be a ‘breath of fresh air’ for the airline industry
Delta CEO Ed Bastian claims Donald Trump will be a ‘breath of fresh air’ for the airline industry (AP)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

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.

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.

Delta is facing a federal investigation into its slow recovery from a global technology outage this summer.
Delta is facing a federal investigation into its slow recovery from a global technology outage this summer. (Getty Images)

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.

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.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in