Airlines Cheer Deregulation: Consumers Likely to Foot the Bill

Image: Crowd of travelers inside an airport terminal. (Photo Credit: tong2530/Adobe)
Image: Crowd of travelers inside an airport terminal. (Photo Credit: tong2530/Adobe)

Airline executives are jubilant about the potential for sweeping deregulation, but travelers should be wary. The incoming administration's pro-business stance threatens to dismantle critical consumer protections, potentially leaving passengers vulnerable to higher costs, fewer rights and increased industry exploitation.

Delta Air Lines CEO Ed Bastian called the incoming administration a "breath of fresh air.” While airlines like Delta have been recording billions in profits—$2.6 billion in the first nine months of 2024 alone—they’re now seeking to remove the very regulations that protect consumers from corporate overreach.

Southwest Airlines CEO Robert Jordan's hope for a Department of Transportation that is "less aggressive in terms of regulating or rule-making" reveals the industry's true agenda: maximizing profits at passengers' expense. This comes despite Southwest's own recent $140 million settlement for catastrophic network failures that stranded thousands of travelers.

The current consumer protections, championed by Transportation Secretary Pete Buttigieg, have been a lifeline for travelers. Automatic refunds for delayed or canceled flights and efforts to remove hidden fees have provided much-needed transparency in an industry notorious for nickel-and-diming passengers.

The scale of airline-caused disruptions is staggering. From July 2021 through April 2022, more than 15 million passengers were potentially affected by flight cancellations, with more than 116 million impacted by delays. Critically, over 60% of three-hour-plus domestic flight delays in 2022 and 2023 were directly caused by airlines themselves.

The nominated replacement for Buttigieg, former Wisconsin House Representative Sean Duffy, has already signaled a shift away from consumer protection. While Trump promises a "Golden Age of Travel," the airline industry's enthusiastic endorsement suggests this age will primarily benefit corporate bottom lines, not passengers.

The Airlines for America CEO Nicholas Calio's excitement about Duffy's appointment is telling. When an industry lobbying group is "thrilled" by a potential regulatory change, it's a clear warning sign for consumers.

Make no mistake, deregulation means airlines will have more freedom to:

  • Introduce additional fees
  • Reduce compensation for delays and cancellations
  • Cut back on passenger support services
  • Prioritize profit over passenger comfort and convenience

While the airline industry celebrates potential policy changes, travelers should prepare for a future where their rights are diminished and their wallets are squeezed. The "breath of fresh air" Bastian celebrates might just be the wind of corporate profits sweeping away hard-won consumer protections.


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