Delta Air Lines Suffered a $200 Million Loss During the Government Shutdown

The longest government shutdown on record cost Delta Air Lines an estimated $200 million, according to CEO Ed Bastian. This is the first financial impact disclosure made by a U.S.airline regarding the shutdown.

Bastian informed investors that refunds “grew significantly” and bookings slowed down due to the uncertainty in air travel caused by the 43-day shutdown. This resulted in a loss of approximately 25 cents per share for Delta.

The shutdown, which began on October 1st, caused long delays at major airports and historic flight cancellations at 40 of the contry’s busiest airports. This was due to more unpaid air traffic controllers missing work, citing stress and the need for additional income.

as the shutdown continued into it’s second month, the Federal Aviation Administration issued an emergency order requiring commercial airlines to cancel up to 6% of their domestic flights.Transportation Secretary Sean Duffy stated this decision was necessary to guarantee safe air travel.

“When you’ve got the secretary of transportation telling people we don’t have controllers, questioning the safety at some level of travel, which has never before happened,” Bastian said, “it led to more customers holding off on booking their holiday travel.”

Key Takeaways

• The government shutdown cost Delta Air Lines an estimated $200 million.
• Refunds increased and bookings slowed due to travel uncertainty.
• Flight cancellations and delays occured at major airports due to staffing shortages.
• The FAA mandated flight reductions to maintain safety.