Brief
Delta CEO Ed Bastian says no feud with Elon Musk as airline reports earnings miss
Bastian called Musk’s job‑loss prediction “nonsense” while Delta posted record revenue but missed profit forecasts.
By Felo News Desk · Published
Delta Air Lines chief executive Ed Bastian told CNBC’s Phil LeBeau on Friday that he is not feuding with SpaceX founder Elon Musk, even after Musk posted that Bastian would lose his job. Bastian said the dispute over in‑flight Wi‑Fi is “not personal” and emphasized Delta’s role as a pioneer in airline Wi‑Fi.
What happened
Delta released its September‑quarter results on Monday, missing Wall Street earnings estimates for the first time in two years. Adjusted fuel expenses rose 62% year‑over‑year to $4.1 billion, driven by higher jet‑fuel prices after the Iran war began in February. Despite the fuel surge, the airline posted record quarterly revenue of $17.6 billion, up 16%, and a pre‑tax profit of $1.5 billion, matching the prior year. Premium‑ticket revenue grew 18% to $6.8 billion and loyalty revenue also rose 18%, keeping American Express payments on track to exceed $9 billion for the year. Delta forecast December‑quarter revenue growth of about 20% and full‑year earnings of $5.10 to $5.60 per share, while warning of a $6 billion increase in fuel costs.
What the reports add
The Fortune article notes that the Wi‑Fi dispute began in March when Delta chose Amazon’s Leo over SpaceX’s Starlink, installing Leo on 500 aircraft starting in 2028. In May, Musk claimed Delta wanted passengers to log in through a “Delta Sync” portal that would channel them into the airline’s loyalty program, calling the move “painful, difficult and expensive.” Musk later posted on X that Bastian would lose his job, prompting Bastian’s remarks on CNBC.
What was said
“There’s no tit for tat as far as I’m concerned,” Bastian told CNBC, adding, “I’m a big fan of Starlink. I drive a Tesla.” He described Musk’s suggestion that the issue was personal as “nonsense.” When asked about Musk’s job‑loss tweet, Bastian said, “I don’t pay any attention.” He also said Delta’s current Hughes and Viasat systems will see “meaningful improvements” until Leo is fully deployed.
How it came about
Delta first discussed a partnership with SpaceX six years ago and even lent planes for testing, but the companies could not align on a business model. Bastian said the airline’s decision to go with Leo was based on lower price and broader content offerings, including retail, Amazon Prime, video and gaming. United and American have since announced plans to equip their fleets with Starlink, leaving Delta as the only major U.S. carrier without the service as of the article’s date.
Key facts
- Delta missed Wall Street earnings estimates for the first time in two years (fortune.com)
- Adjusted fuel expense rose 62% to $4.1 billion in the September quarter (fortune.com)
- Delta posted record September‑quarter revenue of $17.6 billion, up 16% (fortune.com)
- CEO Ed Bastian said there is no personal feud with Elon Musk (fortune.com)
- Delta chose Amazon’s Leo over SpaceX’s Starlink for in‑flight Wi‑Fi (fortune.com)
Sources
- [1] fortune.com — originally reported as “'I drive a Tesla': After Elon Musk said he’d lose his job, Delta CEO Ed Bastian says there’s 'no tit for tat' as airline unveils earnings miss”
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