5 airline issues to observe in 2025: Boeing, flight refunds, and more | Cruising Altitude
Well, everyone, we’ve nearly wrapped up another year, and it has certainly been an eventful one.
In aviation, we witnessed the reauthorization of the Federal Aviation Administration, many new consumer protections including automatic refunds for canceled flights, and new regulations aimed at making air travel safer and more respectful for wheelchair users. Additionally, there have been several merger decisions, increasing awareness about turbulence hazards, and the ongoing developments concerning Boeing. And let’s not forget about drones.
I’m optimistic that drones might be a lesser concern in 2025, and at least we won’t have to face another FAA funding dispute for a few more years. However, many of these stories will carry over into the new year.
Here are five topics I’m keenly observing (and likely writing about) as we enter 2025.
1. What’s going on with Boeing?
Boeing has faced significant safety and supply chain challenges over recent years. The company has agreed to tighter regulatory scrutiny and has made numerous pledges to enhance safety standards and quality control in its manufacturing processes.
Boeing isn’t going away; simply put, its primary competitor, Airbus, does not have enough production capacity to meet the demand for new aircraft on its own. However, it remains uncertain how swiftly Boeing can bounce back to its previous production levels and restore its image as the foremost airplane manufacturer globally.
In 2025, it will be essential to sift through the noise and recognize that not every aviation incident involving a Boeing aircraft can be attributed to Boeing itself. Yet, it will also be crucial to monitor the company’s performance and whether new planes face ongoing quality challenges as they launch.
It’s fair to say that we should hope for Boeing to improve. A competitive environment among aircraft manufacturers benefits travelers, as it makes them less concerned about the specific type of aircraft they’re flying on.
2. Are enhanced consumer protections here to stay?
The Biden administration ushered in numerous consumer safeguards in the travel sector, some of which, like the law on automatic refunds for canceled flights, are now legally established.
However, some protections could be more precarious despite their popularity. For instance, a newly finalized regulation detailing protections for travelers with disabilities might be undone.
The anticipated Trump administration has indicated it may adopt a more lenient stance on industry regulation, potentially leading to the reversal of some recent reforms.
Outgoing Transportation Secretary Pete Buttigieg expressed concerns about possible modifications to policies established during his time, but he feels relatively optimistic about the most well-received ones for the moment.
“For instance, the refund rule is now law, backed by the FAA reauthorization, meaning that abolishing automatic refund provisions would necessitate an act of Congress, accomplished on a bipartisan basis,” he stated. “This has widespread bipartisan support among travelers, and undermining it could have serious repercussions.”
3. Will airline loyalty programs undergo changes?
Consumer advocates have long criticized airline loyalty programs for their lack of transparency, arguing that companies have been diminishing the value of points and complicating the booking process for reward tickets.
The Department of Transportation has recently launched an investigation into how airline points are valued and whether there are any questionable practices within frequent flyer programs.
Typically, Republican administrations are viewed as more favorable toward businesses than Democratic ones, so it remains uncertain if any outcomes will arise from the investigation under a Trump administration. However, the data will still be accessible, and it will be interesting to see how it is handled, if at all.
It’s also possible that airlines will continue to implement minor adjustments to their programs, making it increasingly challenging and costly to redeem points.
4. Will the FAA continue its hiring?
A significant issue in recent years has been the hiring process at the FAA. Airlines have frequently highlighted inadequate staffing in control towers as a primary factor contributing to delays, particularly during busy travel periods.
Buttigieg shared with YSL News that there has been a shift in this trend, although he admitted that further hiring of controllers is essential to fully resolve the issue.
So, as we enter the new year, will the upcoming administration maintain its focus on this effort?
5. Will there be more approvals for airline mergers?
A key merger issue in 2024 was JetBlue’s failure to combine with Spirit Airlines. Following this denial, Spirit has entered bankruptcy proceedings, while JetBlue has initiated a restructuring strategy to enhance its reliability and profitability.
With a more business-attractive administration anticipated in Washington next year, will we witness additional consolidations within the airline sector? It’s hard to say—currently, the industry features a limited number of major players, with only four significant airlines dominating the domestic market. If more airlines decide to merge, how would that impact travelers, and what effects would it have on ticket prices? These questions remain open.