Delta CEO says more government regulations could lead to higher ticket prices
Airline fares dropped 2.6% in April on a monthly basis
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Delta Air Lines CEO Ed Bastian said Wednesday that more government regulations could lead to higher 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 during an interview with "CBS Mornings."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 63.63 | -1.12 | -1.73% |
It's "common business logic," he added.
In April, airline fares dropped about 2.6% from March after four months of increases, according to government data.
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Representatives for Delta Air Lines declined to comment further.
Earlier this month, President Biden said his administration will write new regulations requiring major carriers to compensate travelers and cover their meals and hotel rooms if they are stranded for reasons within the airline’s control.
This is in addition to ticket refunds for passengers when the airline is at fault for canceling or significantly delaying a flight.
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Biden noted 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."
Passengers are seen at the Delta Air Lines check in area before their flights at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, U.S. June 28, 2022. ( REUTERS/Elijah Nouvelage / Reuters Photos)
However, Bastian argued that the airline already pays compensation to travelers. Last year, it doled out "hundreds of millions of dollars for customers," he said.
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"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.
The Associated Press contributed to this report.