Airline CEO Says More Flights Needed to Lower Ticket Prices

Delta Air Lines CEO Ed Bastian said ticket prices will decline when airlines can increase the number of flights, citing supply constraints rather than fuel costs alone. Bastian spoke to FOX Business on Tuesday. He stated that the air traffic control system is currently congested and that opening additional airspace would allow more flights and lower prices.

Bastian said fuel prices rose 10 to 15 percent across the airline industry after conflict in Iran and the temporary closing of the Strait of Hormuz. He noted that oil prices have since declined. The airline reported that higher energy costs increased expenses by nearly $2 billion, leading to higher ticket prices. Bastian said the company had no choice but to pass on the added costs.

Bastian said progress has been made in the last year and a half to reduce bottlenecks in the aviation system. He added that continued investment in air traffic infrastructure would allow more flights and help lower customer costs. Bastian also said Delta has regained investment-grade credit ratings and is expanding its maintenance operations into a third-party business.