The chief executive of Delta Air Lines expressed optimism about the incoming Trump administration, calling it a 'breath of fresh air' for the airline industry. The CEO highlighted the perceived government 'overreach' under President Joe Biden, particularly in terms of consumer-protection regulations that have impacted airlines.
Delta is currently under federal investigation for its slow recovery from a global technology outage earlier this year. Despite these challenges, the airline reported a profit of $2.6 billion in the first nine months of 2023, following a successful year in 2022.
During an investor day event in Atlanta, Delta executives reiterated their financial outlook, projecting a mid-single-digit revenue increase for 2025 compared to 2024. The company also expects adjusted profits in the fourth quarter to range between $1.60 and $1.85 per share.
While the airline industry anticipates potential regulatory changes under the new administration, consumer advocates are concerned about the possible rollback of certain passenger-friendly rules, such as automatic flight refunds and transparent fare advertising.
Trump's nominee for transportation secretary, Sean Duffy, has received praise from industry groups for his past advocacy on behalf of U.S. airlines. However, airlines like Delta are currently challenging regulations that mandate fee transparency and scrutiny of frequent-flyer programs.
Delta's response to the federal investigation into its technology outage has included legal action against CrowdStrike, the cybersecurity provider involved in the incident. The Transportation Department is examining whether Delta's handling of flight cancellations and delays violated consumer-protection rules.
Notably, Southwest Airlines recently settled a similar investigation with a $140 million agreement following a major service disruption in 2022. The outcome of Delta's case could have significant implications for the airline's operations and reputation moving forward.
