The Trump administration might be waving a green flag for airline mergers, but don't expect Delta Air Lines (DAL) to jump into the consolidation race. CEO Ed Bastian made it clear on Monday that the airline is far more interested in expanding its global footprint than in chasing a domestic tie-up just because the political winds have shifted.
In an interview, Bastian said Delta isn't keen on consolidation “just because there's a window in Washington,” according to Bloomberg. That's a pointed reference to President Donald Trump's more merger-friendly stance compared to the previous administration. Bastian specifically addressed the buzz around a potential merger of United Airlines Holdings Inc. (UAL) and American Airlines Group Inc. (AAL)—an idea that United CEO Scott Kirby has reportedly been promoting. But Bastian noted that the “idea of merging with American Airlines” has met with resistance from American itself, as well as from lawmakers.
Instead of playing matchmaker in the U.S., Delta is looking abroad. The airline is restarting flights to Hong Kong and adding new routes to Riyadh, Saudi Arabia. Bastian said Delta aims to bolster its presence in Asia and South America, and that the strategy involves recognizing and growing the “relevance” of Delta's “brand internationally.” He also acknowledged that ticket prices could remain elevated amid surging oil costs due to the ongoing war in Iran.
