Delta Air Lines CEO Ed Bastian spoke on Morning with Maria about rising fuel costs, resilient travel demand, and the airline’s plans for global expansion.
As inflation and high airfare prices concern American travelers, Delta Air Lines CEO Ed Bastian has shared insights on what it might take to lower ticket prices. He pointed out that it’s not just rising fuel costs affecting fares, but a significant lag in market supply.
“People often ask me what ticket prices are looking like,” Bastian remarked during his interview with FOX Business’ Maria Bartiromo. “More planes in the air and increased supply will generally drive prices down—currently, we’re in a bit of a stalemate.”
“We can’t increase supply as much as needed because the air traffic control system is quite congested. By opening the skies, we could facilitate more flow, which would help lower prices and efficiently transport more people to their destinations,” he explained.
Recent spikes in prices were also linked to the Iran conflict and the closure of the Strait of Hormuz, but commercial traffic through this important waterway is on the rise again. Last Wednesday, President Trump and Iranian President Masoud Pezeshkian signed a memorandum aimed at resolving the war. Speaking the prior day, Trump noted that 19 million barrels of oil had leaked from the Strait of Hormuz.
JetBlue adjusts operations at Newark and LaGuardia airports to focus on Florida
Bastian noted that the initial price hike of about 10-15% was likely appropriate. “Right now, with oil prices decreasing, we seem to be in a decent position,” he added.
However, he mentioned that rising energy costs have adversely affected Delta’s revenue by almost $2 billion, compelling the airline to increase ticket prices.
“We didn’t have much choice,” he acknowledged, while emphasizing that more accountability and reducing governmental spending could help in making flights more affordable.
Bastian expressed optimism about the progress made in addressing longstanding issues in the aviation sector. “In the past year and a half, we’ve tackled bottlenecks more effectively than in the last few decades, which is really crucial,” he shared.
“I believe we should keep investing in this future. It’s probably the smartest investment we can make, not just for safety—which remains our top priority—but also for smoother air travel,” he added.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Bastian also covered how Delta has managed to regain investment-grade ratings from all three major credit agencies and welcomed Berkshire Hathaway back as its largest shareholder. The airline has also seen its Delta TechOps evolve into a billion-dollar independent maintenance operation.
“In the coming years, our balance sheet will be a fortress, something we haven’t seen in this industry before,” he projected. “This sector is regarded as the gold standard in the United States… Whether it’s Boeing, airlines, or technical capabilities, we lead the way.”
