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Buttigieg defends DOT's passenger protections against Delta CEO's criticism

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Buttigieg defends DOT's passenger protections against Delta CEO's criticism
Policy
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Pete Buttigieg, the outgoing Secretary of Transportation, has responded to comments made by Ed Bastian, CEO of Delta Air Lines. Bastian had criticized the Department of Transportation's (DOT) consumer protection measures as overreach. Buttigieg countered that such views are disconnected from passenger sentiments.

In an interview with The New York Times, Buttigieg stated that anyone who believes the DOT overstepped its boundaries in enforcing consumer protections is "out of touch with his customers." He emphasized that passengers have supported measures like automatic refunds for delays and flight cancellations, as well as new rules on junk fees. According to Buttigieg, these regulations have not adversely affected airlines.

"We want airlines to succeed," he said. "We just want them to succeed by doing the right thing, and if they won’t do that on their own, we will implement policies to require it."

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Buttigieg also expressed doubt that the incoming administration would alter this consumer-focused approach despite Republicans gaining control of Congress and the White House.

Bastian's remarks came before Delta Air Lines' Investor Day on November 20. He indicated optimism about a more business-friendly regulatory environment under Trump’s presidency. Despite his comments, Delta has reported profitability since 2022 and expects strong financial results for Q4 2024.

A report from the US Senate Permanent Subcommittee on Investigations highlighted how US airlines have generated significant revenue through ancillary fees over two decades. It noted that American Airlines, Delta Air Lines, United Airlines, Frontier Airlines, and Spirit Airlines collectively earned $12.4 billion from seat fees between 2018 and 2023.

The report also pointed out that some airlines labeled parts of their charges as non-taxable fees to avoid federal taxes. Richard Blumenthal, Chair of PSI, stated that he would question airline executives about these practices during a hearing scheduled for December 4.

Blumenthal remarked on how passengers faced high fees during peak travel periods like Thanksgiving weekend when TSA recorded record-breaking numbers.

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