According to Ed Bastian, CEO of Delta Air Lines, the Trump administration’s regulatory strategy may be a welcome change.
Bastian told reporters before to Delta’s investor day that President-elect Donald Trump has promised to reexamine bureaucracy and regulations.
The airline industry has objected to a number of regulations issued by the U.S. Department of Transportation under Secretary Pete Buttigieg that are meant to protect consumers. One such regulation, which was implemented this year, mandates that airlines automatically reimburse passengers in cash when a flight is canceled.
According to Bastian, overreach has occurred in the sector throughout the last four years.
The department is also investigating the lucrative loyalty programs offered by airlines, which help companies stay solvent by generating billions of dollars in revenue. Information regarding airlines’ ability to unilaterally alter frequent flyer point values is being sought by the current DOT leadership.
Delta stated on Wednesday that it anticipates increasing sales and earnings in the upcoming months and years, citing strong customer demand and a notable increase in household wealth following the pandemic.
Trump chose Fox Business anchor and former US congressman Sean Duffy to head the department. An inquiry was not immediately answered by Duffy.
Other CEOs of U.S. airlines have praised the incoming government and asked officials to ensure the sector has adequate funding to upgrade air traffic control, which is under the jurisdiction of the Federal Aviation government, and other critical infrastructure.
At last week’s Skift Aviation Forum in Dallas, American Airlines CEO Robert Isom stated that we must make investments in this sector. According to him, more work needs to be done to authorize more visas so that individuals can travel to the United States.
Jude Bricker, CEO of Sun Country Airlines, stated last week in an interview that the DOT just needs funding and stability.
Analysts and industry participants anticipate that the incoming administration will be more receptive to consolidation and acquisitions.
This year, Alaska Airlines acquired Hawaiian Airlines without opposition from the government of President Joe Biden. However, Biden’s Justice Department filed a lawsuit to stop two airline deals: a partnership between JetBlue and American Airlines in the Northeast that was approved in the final days of the first Trump administration, and a proposed acquisition of Spirit Airlines by JetBlue Airways, which filed for Chapter 11 bankruptcy protection Monday.
Bricker of Sun Country stated that this administration might take a different stand. There is nothing more it can do to counter it.
More from CNBC:
-
Delta forecasts profit growth thanks to high-end travel and ‘resilient economy
‘
-
NHL looks beyond U.S., Canada for league growth
-
A double whammy is coming for U.S. trade and the global supply chain in early 2025
Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!