Delta CEO Ed Bastian Talks Strategy as Competitors Stumble

02.06.2024 - 13:31 / skift.com / Scott Kirby / Glen Hauenstein / Ed Bastian / Delta Air Lines / Vasu Raja / Delta Ceo / Robert Isom / United Airlines / Delta Air-Lines / Gordon Smith / Delta

If last week was one American Airlines would rather forget, consider 2024 the year Delta Air Lines never wants to end.

Speaking on Saturday, Delta CEO Ed Bastian delivered an upbeat assessment across multiple key metrics for the airline. “Business is doing quite well, summer is progressing strongly and looking healthy. We expect our full-year [results] to be well within the guidance.” 

It was a message echoed by Delta President Glen Hauenstein, who described “continued strength through the spring and into the early summer.” Hauenstein said further record revenues were predicted, with the airline able to “fill up aeroplanes at very good fares.”

Both Bastian and Hauenstein were speaking to reporters in Dubai on the eve of the IATA Annual General Meeting – the year’s largest gathering of senior airline leaders. 

Asked by Skift if missteps by American on its fare distribution strategy had directly benefited Delta, Bastian delivered a measured response. “We’re not going to talk about our competitors’ strategies, but we certainly use NDC [New Distribution Capability] as a form of distribution. Our strategy is very simple, we’re going to serve our customers where they’d like to be served.”

NDC refers to a new-generation technology platform that can offer airlines and other travel stakeholders greater upselling opportunities and personalization options. While it is broadly accepted as the logical next step in the ongoing digitalization of travel, how and when it is adopted is deeply controversial. 

American Airlines, under the lead of outgoing chief commercial officer Vasu Raja, took a hardline stance on the rollout of NDC. Travel agencies faced a July 11 deadline that would have seen its AAdvantage miles no longer earned on certain bookings.

American CEO Robert Isom said last week that the airline had now dropped the idea. He acknowledged that the airline had lost business due to the botched project and said American had threatened “too many sticks” and not enough carrots.

Asked by Skift if he agreed with United’s Scott Kirby that so-called ultra-low-cost carriers (ULCCs) have “a fundamentally flawed business model,” Bastian suggested the sector was in transition: “I think the ULCCs have well-documented challenges in the market. Over the past few years, they’ve had a hard time finding profitability. Anytime you’re an airline that hasn’t been able to find its ace of profited return and positive cash flow, you’ve got some work ahead of you.” 

Pressed on if he thought consolidation was inevitable within the U.S. airline industry, the Delta CEO said: “I think there’s work to be done, and I think that could take various forms,” without going into further detail. 

Although JetBlue’s tie-up with Spirit was canned,