Less than 50 days after Southwest Airlines and American Airlines announced they were ending their DEI policies, Delta Airlines leaders insisted that their policies on diversity, equity, inclusion (DEI), and sustainability are essential to business operations.
Delta’s decision was confirmed during a recent earnings call. Peter Carter, Delta’s Executive Vice President of External Affairs, confirmed that the airline is not reevaluating its DEI and environmental, social, and governance (ESG) policies. He stated, “We are steadfast in our commitments because we believe they are critical to our business.” He also noted that sustainability helps improve operational efficiency.
In contrast, some U.S. companies, like Boeing, have reduced or eliminated their DEI departments, opting for a “merit-based performance system.”
Carter emphasized DEI’s role in attracting talent: “The key differentiator at Delta is our people.”
Recently, a U.S. District Judge ruled that American Airlines violated federal law by prioritizing social activism over the financial interests of their employees’ 401(k) plans. Judge Reed O’Connor stated that the airline breached its duty to make investment decisions based purely on financial interests by allowing BlackRock to focus on ESG criteria.
In 2023, pilot Bryan Spence filed a class-action lawsuit against American Airlines regarding ESG investments, affecting over 100,000 retirement plan participants. The judge ruled that the airline had broken its loyalty duty to these participants.
It remains unclear if American Airlines will face penalties from this ruling, as Judge O’Connor deferred judgment on potential losses for plan participants.
