Delta Air Lines CEO Ed Bastian has expressed optimism about the incoming Trump administration, describing its regulatory approach as a potential "breath of fresh air" for the airline industry. Speaking ahead of Delta's investor day in Atlanta, Bastian pointed to the administration's promise to reform federal oversight and reduce what he characterized as excessive government intervention under President Joe Biden.
"We've seen a level of overreach in the past four years," Bastian remarked. "President-elect Donald Trump has pledged to take a fresh look at the regulatory environment, which is something the industry could benefit from." His comments reflect growing frustration among airline executives over Biden-era consumer protection policies that have imposed new requirements on carriers.
Bastian's remarks come as Delta and other airlines face scrutiny from the Department of Transportation (DOT) under Secretary Pete Buttigieg. Among the contentious regulations is a rule mandating automatic cash refunds for canceled flights, which airlines have criticized as burdensome. Additionally, the DOT has launched an investigation into the structure of frequent-flyer programs, which generate billions of dollars in revenue for the industry. Delta alone has reported over $2.4 billion in loyalty program revenue this year.
The DOT is also probing Delta's response to a major technology outage in July, which disrupted operations and left passengers stranded. The agency is investigating whether the airline's handling of delays and cancellations violated federal consumer protection rules. While Delta initially pledged cooperation, the airline has since filed a lawsuit against CrowdStrike, a cybersecurity provider, alleging that a faulty software upgrade caused the outage.
Consumer advocacy groups have voiced concern over a potential rollback of these protections under the Trump administration. Rules requiring airlines to advertise the full price of fares upfront, including taxes and fees, could also face revision. These groups fear that relaxing such policies might disadvantage travelers.
Bastian did not specify which Biden-era rules he hopes to see reversed but highlighted broader frustrations with federal oversight. Delta, along with other major carriers, is part of a lawsuit challenging a DOT rule requiring transparency around ancillary fees. Airlines have argued that providing detailed fee information could overwhelm consumers with unnecessary data. An appeals court has temporarily blocked the rule's enforcement pending the outcome of the case.
The airline industry has also welcomed Trump's selection of Sean Duffy, a former congressman and Fox Business host, as Secretary of Transportation. Duffy has previously lobbied on behalf of U.S. airlines during disputes with Gulf carriers. Other airline executives, including American Airlines CEO Robert Isom, have called on the incoming administration to prioritize investments in air traffic control infrastructure and streamline visa approvals to boost tourism.
Meanwhile, analysts anticipate that the Trump administration may adopt a more lenient stance on industry consolidation. Mergers, such as Alaska Airlines' acquisition of Hawaiian Airlines, have proceeded under Biden without significant resistance. However, Biden's Justice Department blocked JetBlue Airways' acquisition of Spirit Airlines and an alliance between JetBlue and American Airlines in the Northeast.
"Perhaps this administration would have a different stance," said Sun Country Airlines CEO Jude Bricker, who has advocated for stability and resources at the DOT. "It certainly can't get more against [mergers]."
Despite regulatory hurdles, Delta remains optimistic about its financial trajectory. The company reaffirmed its forecast of fourth-quarter adjusted earnings between $1.60 and $1.85 per share and projected mid-single-digit revenue growth in 2025. Analysts expect a 6% increase.
