Delta CEO Warns Government Regulation Could Increase Ticket Prices

The CEO of Delta Air Lines has warned that government regulations could increase ticket prices, further contributing to the country’s ongoing travel crisis.

Speaking to CBS Mornings, CEO Ed Bastian said that “common business logic” dictates that government regulation will cause a spike in ticket prices.

“There’s no question if there is another layer of government regulation and cost that’s introduced into the system, it’ll eventually find its way back into ticket prices,” Bastian said.

The Biden administration introduced regulations earlier this month that would “require airlines to compensate passengers and cover their meals and hotel rooms if they are stranded for reasons within the airline’s control,” according to the Associated Press.

“When an airline causes a flight cancellation or delay, passengers should not foot the bill,” Transportation Secretary Pete Buttigieg said in an interview at the time.

The rule would be the first of its kind requiring airlines to pay for travel expenses beyond a ticket refund, travel voucher, or the rebooking of another flight.

“Currently, when an airline cancels a flight for any reason, consumers can demand a refund of the unused part of their ticket and certain extras that they might have paid to the airline, such as fees for checking a bag or getting a seat assignment. Airlines often try to persuade consumers to accept a travel voucher instead of a refund,” noted the AP.

“Each of the 10 largest U.S. airlines quickly promised to provide cash or vouchers for meals when a cancellation forces passengers to wait at least three hours for another flight. Nine of the 10 — all but Frontier Airlines — also promised to pay for accommodations for passengers stranded overnight,” it added.

A report from the Congressional Government Accountability Office in April went as far to blame airlines for a spike in cancelations, which hit disproportionate levels last Christmas season.

In his announcement, Joe Biden said that travelers “deserve more than just getting the price of your ticket (refunded) — you deserve to be fully compensated. Your time matters, the impact on your life matters.”

Delta CEO Ed Bastian told CBS that his airline pays compensation to travelers and that it last year gave out “hundreds of millions of dollars for customers.”

“We do it at Delta because its great service… you know if something goes awry Delta’s going to be there for you,” Bastian said.

Paul Roland Bois joined Breitbart News in 2021. He also directed the award-winning feature film, EXEMPLUM, which can be viewed on Tubi, Google Play, YouTube Movies, or Vimeo on Demand. Follow him on Twitter @prolandfilms or Instagram @prolandfilms.