Skift Take
Ed Bastian made smart moves that put Delta at the crest of the premium wave. The airline now rakes in one of every three dollars of profit made in the entire U.S. airline industry.
Key Points
- Ed Bastian's leadership has made Delta a top U.S. network carrier through simplicity and customer focus.
- Delta faced a major challenge with the CrowdStrike IT outage, costing the airline $500 million and impacting its reputation.
- Bastian's career includes significant roles at Pepsi and Frito-Lay before becoming Delta's CEO in 2016, with a focus on caring for employees.
Summary
Ed Bastian, CEO of Delta Airlines, has successfully positioned the carrier as a leader in the U.S. market through a focus on simplicity and customer service. Despite a significant setback from a CrowdStrike IT outage, Bastian's leadership has driven Delta to invest heavily in premium services, securing a dominant share of industry profits. His career, marked by roles at Pepsi and Frito-Lay before joining Delta in 1998, culminated in his promotion to CEO in 2016. Bastian emphasizes the importance of taking care of Delta's people as the essence of his leadership philosophy.
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It ain’t easy running a profitable airline, but listen to Delta CEO Ed Bastian and you’re left wondering why others are faltering. His laser focus on simplicity at all levels of the business has helped Delta become the kingpin of U.S. network carriers.
Speaking to Skift in June, as American Airlines was struggling through backlash from travel agents over its distribution strategy, Bastian calmly said: “Our strategy is very simple, we’re going to serve our customers where they’d like to be served.”
However, just a few weeks later, it was Delta in the headlines for the wrong reasons. The CrowdStrike IT outage crippled its operations, with the airline and its passengers hit harder than any other major carrier. Delta is currently engaged in a fiery war of words with the cybersecurity firm and Microsoft over who or what was to blame. Bastian estimates the crisis will cost Delta $500 million, with its once pristine reputation also taking a heavy knock.
Looking beyond July’s CrowdStrike chaos, Bastian has turned Delta into one of the country’s most upscale mainline carriers. Huge investments in its airport lounges and onboard product have seen it become a darling for many discerning travelers. By accident or design, it’s surfing the crest of the premium wave.
Delta raked in one of every three dollars of profit made in the entire U.S. airline industry last year. It’s always been one of the ‘Big Three,’ but recent quarters have seen it edge more comfortably into pole position.
All of this is a long way from Bastian’s relatively modest upbringing. He grew up in Poughkeepsie, New York, and earned his stripes at cornerstones of corporate America including Pepsi and Frito-Lay.
He joined Delta in 1998 as VP of Finance. By 2005 he was CFO, helping steer the company through stormy financial skies. In 2007, he was appointed company president and was promoted to CEO in 2016.
Ask Bastian to sum up his job in five words and he’ll reply with what initially feels like a cliche: “Taking care of our people.”
Ed Bastian at Skift Global Forum
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Tags: airlines, delta air lines