Delta Takes $200M Hit: CEO Ed Bastian Reveals Record Shutdown's Financial Toll

Image Source: Internet

Delta Air Lines has suffered a significant financial blow due to the record 43-day government shutdown, with CEO Ed Bastian estimating the airline lost around $200 million. The shutdown, which began on October 1, caused uncertainty in air travel, leading to long delays and historic flight cancellations at 40 major US airports. As unpaid air traffic controllers took on side jobs, the Federal Aviation Administration issued an emergency order to cancel up to 6% of domestic flights, resulting in over 10,000 flights being cut between November 7 and November 16. According to Bastian, the shutdown's impact was largely felt in refunds and slower bookings, contributing to a loss of about 25 cents per share. However, despite the disruption, Bastian expressed optimism that the shutdown's effects are behind them. Delta reported a busy Thanksgiving week and strong bookings leading up to Christmas and New Year's Day. The shutdown's impact was felt across the country, with large hubs in New York, Chicago, Los Angeles, and Atlanta being affected. The FAA rolled back flight restrictions from 6% to 3% as air traffic controller staffing improved after the shutdown ended on November 12. While President Donald Trump called for bonuses for controllers who continued working without pay, only 776 individuals with perfect attendance during the shutdown received bonuses. Sen. Tammy Duckworth has since demanded that the remaining FAA workers also receive bonuses. In a statement, Duffy acknowledged the difficulties faced by controllers during the shutdown but maintained that a cutoff on bonuses was necessary. All affected controllers and technicians will receive full backpay. As the airline industry recovers from the shutdown, Delta is looking forward to a strong close to the year.