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Airline CEOs seek to curb government ‘excesses’ under Trump – Orange County Register
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Airline CEOs seek to curb government ‘excesses’ under Trump – Orange County Register

By David Koenig | The Associated Press

The general director of Delta Airlines said the entrant Trump administration will be a “breath of fresh air” for airlines after what he calls government “overreach” under President Joe Biden.

The airline industry is irritated consumer protection regulations imposed by the Biden administration. And Delta faces a federal investigation into its slow recovery after a global technological breakdown 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 promises 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 within government, the level of overreach that we’ve seen over the last four years within our industry. I think it will be a breath of fresh air.

Southwest Airlines CEO Robert Jordan struck a similar tone after a speech last week in Dallas.

“I think there’s a general sense that the new administration might be a little more business-friendly,” Jordan said. “We’re hoping for a DOT (Department of Transportation) that’s maybe a little less aggressive in terms of regulation or rule-making.”

Delta used its investor day to boost support for the company, which reported a profit of 2.6 billion dollars in the first nine months of this year after earning a top degree $4.6 billion last year.

The airline maintained its previous forecast that fourth-quarter adjusted earnings would be between $1.60 and $1.85 per share. The company said its 2025 revenue will increase by a mid-single-digit percentage from 2024. Analysts expect a 6% increase, according to a FactSet survey.

Consumer advocates are wary of a second Trump administration, fearing it will try to undo a rule requiring automatic refunds after canceled flights and another that requires airlines to announce the total price of fares in advance , including mandatory fees and taxes.

On Monday, the airline industry trade group praised Trump’s efforts. choose for transportation secretarySean Duffy, former Wisconsin Republican congressman and reality TV star who is co-host of “The Bottom Line” on Fox Business. Duffy lobbied on behalf of American airlines and their unions during a conflict with Persian Gulf carriers.

But Accountable.US, a nonprofit watchdog group, said putting Duffy in charge of the department that oversees airlines was a sign that Trump is “putting his friends and their special interests ahead of American consumers.”

Bastian did not specify which Biden regulations he considered excessive, but Delta and other carriers are. sue the Ministry of Transport remove a rule requiring greater transparency on the fees carriers charge their passengers.

The group Airlines for America said the rule would confuse consumers by giving them too much information. A committee of the court of appeal blocking the application of the rule while the airlines’ lawsuit continues.

Airlines are also objecting to an investigation the administration recently launched into their loyalty programs. Delta has received more than $2.4 billion in revenue from its loyalty program so far this year.

But the biggest blow to Delta could come from a Department of Transportation investigation into the airline’s slow recovery from a technology outage in July. Transportation Secretary Pete Buttigieg said investigators were focused on whether Delta’s treatment of passengers affected by canceled or delayed flights violated federal consumer protection rules.

Southwest Airlines has reached a $140 million settlement after a Department of Transport investigation into a similar but larger service outage in December 2022.

Delta initially said it was cooperating with the investigation. In October, Delta continued Crowd strikethe cybersecurity vendor whose faulty upgrade to Microsoft computers triggered the outage.