Delta Air Lines CEO Ed Bastian stated that the arrival of Donald Trump to the presidency could represent a significant shift in the regulatory approach toward the airline industry. In remarks reported by CNBC ahead of Delta’s Investor Day, Bastian described the president-elect’s promises as an opportunity to review regulations that, according to him, have constrained the sector in recent years, which he defined as a potential «breath of fresh air.»
Bastian referred to policies implemented by the Department of Transportation (DOT) under Pete Buttigieg’s leadership, describing them as a case of “regulatory overreach.” Among the criticized regulations is the requirement for airlines to issue automatic cash refunds for canceled flights. Additionally, the DOT has investigated how companies unilaterally modify the terms of their loyalty programs and is evaluating Delta’s response to massive disruptions caused by the CrowdStrike technology failure in July.
Industry expectations under new leadership
Trump has selected Sean Duffy, a former congressman and Fox Business commentator, to lead the DOT, a move generating optimism among industry executives. According to CNBC, key industry figures expect the new administration to ease airline consolidation efforts after the Biden administration blocked deals like the merger between JetBlue and Spirit Airlines.
“Perhaps this administration will have a different stance. It couldn’t be more restrictive than the previous one,” Sun Country Airlines CEO Jude Bricker said last week, according to CNBC.
Meanwhile, Robert Isom, CEO of American Airlines, emphasized the importance of allocating resources to improve the air traffic control system and expedite visa issuance for international visitors, a recurring concern among U.S. airlines.
Delta looks to the future
Despite recent regulatory challenges, Delta projects positive growth in the coming years. The company highlighted strong demand and an increase in household wealth as drivers of economic recovery, according to data shared by CNBC.
With the transition in leadership at the Department of Transportation, the airline sector is closely monitoring the new administration’s decisions, seeking stability and support to continue developing the infrastructure and services demanded by their customers.
