Bloomberg Talks: Delta CEO Ed Bastian Talks Premium Travel – Episode Summary

Podcast: Bloomberg Talks
Episode: Delta CEO Ed Bastian Talks Premium Travel
Date: January 14, 2026
Host: Bloomberg
Guest: Ed Bastian, CEO of Delta Air Lines

Episode Overview

In this episode, Bloomberg sits down with Delta CEO Ed Bastian in Atlanta for a timely conversation following Delta’s latest earnings report. The discussion centers on Delta’s post-pandemic momentum, the unique strength of the premium travel segment, looming regulatory questions, credit card policies, and prospects for growth—both domestically and international. Bastian also addresses consolidation trends in the airline industry, the crowding of airport lounges, and Delta’s future strategies.

Key Discussion Points & Insights

1. Delta’s Earnings and Market Reaction

• Host opens with a question about investor response to Delta’s earnings report and the forecasted 20% EPS growth for 2026.
• Bastian’s response:

  • Delta feels it has strong momentum going into the year, with particular challenges overcome in the previous year, such as consumer sentiment post-"Liberation Day" and government-induced airspace shutdowns.

  • The investor community’s focus was on Delta's level of caution in projections and what "great" performance could look like.

    "We have a lot of momentum ... We've seen the first part of the year, the momentum picked up yet again ... there were significant challenges ... we wanted to make certain we had a little bit of wiggle room..."
    — Ed Bastian [00:56]

2. Proposed 10% Cap on Credit Card Rates & Loyalty Program Impact

• Host probes on the potential impact of proposed U.S. legislation capping credit card rates and its effect on Delta's lucrative credit card partnership with American Express.
• Key insights:

  • Bastian considers the proposed cap outside Delta’s business but acknowledges industry concern and says the impact is premature to quantify.

  • Emphasizes Amex is a premium card and core Delta customers are less likely to be affected.

  • Suggests legislation would have complex unintended consequences for credit availability.

    "It's premature ... not our business, it's the financial services world and the banking climate ... I think the banks that have already come out and spoken about it are expressing a tremendous amount of concern."
    — Ed Bastian [02:18]

    "Amex is a premium card provider. So that's really not the income level that we focus on in our business."
    — Ed Bastian [02:56]

3. Importance and Growth of the Premium Segment

• Host notes the rise in revenue from the Amex partnership and asks about expected growth.

• Bastian anticipates high single-digit growth for this segment in 2026.

• Discussion shifts to why Delta’s growth is concentrated in the premium cabin rather than economy:

  "All the growth that you've seen so far has been from the premium cabin, not from the main cabin."
  — Bloomberg Host [03:50]

  "The main reason is the demand set for the premium seats ... at a record high. The more we look at the health of the consumer, we talk about the K, we're at the top end of that K in terms of who our consumer is."
  — Ed Bastian [04:06]

• Bastian highlights consumer price strength in premium, and predicts continued rationalization among low-cost competitors.

  "The main cabin is still a big part of our business. It's what pays the bills, I'd like to think of."
  — Ed Bastian [04:28]

4. Industry Consolidation and Delta’s M&A Appetite

• Host asks whether Delta will participate in further consolidation in the U.S. airline market.

• Bastian prefers not to comment directly but implies Delta’s established position means it’s unlikely to target rivals.

  "We're not going to comment on that question. But you know, when you look at who Delta is, you can answer that question for yourself."
  — Ed Bastian [05:30]

• Organic vs. Inorganic Growth:

  • Delta's growth focus is largely international, with a major new Boeing Dreamliner order announced.

  • Bastian believes global expansion is key, noting that only 20% of the world has flown, suggesting enormous potential ahead.

    "International is a big part of our growth strategy ... you have to go new places, you have to find new opportunities to grow and expand."
    — Ed Bastian [05:49]

    "That’s going to be the statement of the second century of flight, I believe. It’s about making the world a much more connected place than it is today."
    — Ed Bastian [06:14]

5. Global Tensions and the Future of International Travel

• Host questions whether “putting up walls” — geopolitical tensions — might threaten international travel.

• Bastian reflects philosophically, trusting that human connection through travel will persist through turbulent times, both literally and metaphorically.

  "There have always been walls, there has always been politics ... the one thing that really does [unite the] world is when you can actually travel ... and you bring the countries physically closer together."
  — Ed Bastian [06:40]

6. Demand Trends and Recent Performance

• Host asks whether premium demand continues to outpace economy.

• Bastian confirms Delta is seeing historic high business class sales at the start of 2026.

  "At the top end, it continues to be in business. We're seeing double digit growth in business at the start of the year. We had our largest weekly sales in our history just last week, up double digits over the same week a year ago."
  — Ed Bastian [07:34]

7. Managing Crowding in Delta Lounges

• Host relays customer frustration over crowded Delta lounges.

• Bastian admits it’s a challenge that accompanies success and says more lounges are being built, particularly with American Express.

  "It's a problem with no good deed goes unpunished ... you build something great and everybody wants to be in there ... We're going to continue to build more supply and more capacity to take care of all of our great customers."
  — Ed Bastian [08:01]

Notable Quotes & Memorable Moments

• On industry headwinds and caution:

  "We wanted to make certain we had a little bit of wiggle room, some caution as to how we thought about projecting the year out."
  — Ed Bastian [01:14]

• On the effect of potential credit card rate caps:

  "It's going to eliminate their ability for credit and it's going to freeze up a tremendous amount of credit lines that the banks aren't going to be able to afford to provide."
  — Ed Bastian [02:40]

• On the future of global air travel:

  "When you think about only one in five people in the world have ever stepped foot on an airplane ... that's going to be the statement of the second century of flight."
  — Ed Bastian [05:49]

• On Delta lounge crowding:

  "No good deed goes unpunished ... you build something great and everybody wants to be in there."
  — Ed Bastian [08:01]

Timestamps for Key Segments

• [00:32] Earnings report, market reaction, and Delta's momentum
• [01:51] Proposed credit card cap and loyalty program impact
• [03:16] Revenue contribution from Amex partnership and growth expectations
• [03:50] Premium vs. main cabin growth
• [05:18] Consolidation in airline industry, Delta’s M&A stance
• [05:49] Internal growth strategy, international expansion, Dreamliner order
• [06:24] Geopolitics and barriers to international travel
• [07:16] 2026 demand trends and record premium sales
• [07:50] Managing overcrowded Delta lounges

Conclusion

This episode provides both an insightful look at Delta’s forward-thinking strategy and a broader view of the airline industry’s shifting dynamics. Ed Bastian’s comments reinforce the airline’s focus on premium services, international growth, and strategic caution in an uncertain economic and regulatory environment, all while balancing customer experience challenges in a period of surging demand.