President Donald Trump‘s promises of deregulation could help boost the profits of airlines, and may wind up adding more cash to consumers’ wallets, analysts told CNBC on Friday.
Trump met with airline CEOs last month, telling them he wants to roll back “burdensome” regulations.
Many of those regulations result in the added fees and taxes, said Helane Becker, transportation analyst at Cowen and Company.
“Most people don’t know that 25 percent of their ticket goes to various taxes,” she said in an interview with “Closing Bell.”
Jim Corridore, airline analyst for CFRA Research, said the fees don’t create a level playing field between U.S. carriers and their intentional counterparts.
“It would allow the airlines to hopefully pass something back to consumers but also give them a little bit of a cushion for the next downturn,” he told “Closing Bell.”
“It would encourage definitely some expansion into areas that are not being fully served right now and it would definitely help the industry be more profitable for the longer term.”
Becker said the major U.S. airlines would also like to see the U.S. renegotiate the open skies agreement it has with international airlines.
Last month, the CEOs of American Airlines, United Continental and Delta Air Lines asked to meet with Secretary of State Rex Tillerson to discuss allegations that Gulf states are unfairly subsidizing state-owned carriers, driving down prices and crowding out competition on key routes, accusations those carriers deny.
“What they would like to see is just a bilateral agreement which would limit the number of cities those airlines could fly into in the U.S. rather than just let them fly anywhere they want to fly,” Becker said.
— Reuters contributed to this report.