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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.

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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

Recorded in September 2018 in New York City.

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Tags: airlines, delta air lines

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