The airlines industry is also heavily taxed.The Aviation and Transportation Security Act mandates the federalization of certain airport security procedures and imposes security requirements on airports and airlines, most of which are funded by per ticket tax on passengers and a tax on airlines.The federal government has on several occasions proposed a significant increase in the per ticket tax, which, if implemented, could negatively impact the company's results of operations. Furthermore, proposals to address congestion issues at certain airports or in certain airspace, especially in the Northeast US, have included concepts such as "congestion-based" landing fees, "slot auctions" or other alternatives, which could impose a significant cost on the airlines operating in those airports or airspace.
Hence, complying with such regulations increases the operating costs of Delta which could have a significant impact on its profitability.
Consolidation in the airline industry may impact business performance