What deregulation could mean for U.S. airlines and the payment industry
It’s 2025, Donald Trump’s second term as president of the United States is about to commence, and the signs are clear that the new administration will be on the side of deregulation.
Many U.S.-based travel technology industry executives are optimistic about the bigger picture. For airlines and travel payment providers, deregulation creates the opportunity to upgrade products, ease compliance, expand orchestration services and form new partnerships. But deregulation will also reshape existing processes and relationships by changing the established rules that guide how different parts of the system work together.
Another layer to navigate is the approach to consumer protection measures, international trade policies and antitrust enforcement. All these areas are in the administration’s sights and have the potential to impact an airline’s top and bottom lines.
IATA’s official take is that the Trump administration brings “significant uncertainties.” On one hand, “tariffs and trade wars would likely dampen demand for air cargo [and] business travel.” Conversely, “gains from deregulation and business simplification could be significant.”
Airline executives are also largely bullish, with Delta’s CEO Ed Bastian widely reported to have welcomed the new administration as “a breath of fresh air.”
As with any governmental transfer of power, change may come quickly or gradually — but change is assured. There are five specific areas where the regulatory goalposts relating directly or indirectly to payments (and therefore airlines’ financial performance) might shift and which airlines and their technology partners must plan for.
