(Dec 3): Delta Air Lines Inc expects to take a US$200 million profit hit in the final quarter after the carrier was forced to slash flights due to the recent record government shutdown.
Demand remains healthy in the quarter ending Dec 31, as well as into early 2026, the carrier said in a stock exchange filing ahead of an investor conference on Wednesday. Growth in bookings has returned to initial expectations after falling during the shutdown, the airline said.
President Donald Trump’ administration imposed temporary flight cuts across 40 major airports during the longest shutdown in US history, citing a shortage of air traffic controllers and security officers. That forced airlines to slash schedules and rebook affected passengers on alternative flights, creating some chaos in the system.
Delta had more than 2,000 cancellations, chief executive officer Ed Bastian said last month. Bastian also said then that bookings for the holidays had slowed down as passengers grew wary about getting stranded during Thanksgiving and Christmas.
The reduction in profitability in the fourth quarter will amount to approximately 25 cents of earnings per share, Delta said on Wednesday. The airline had previously said it expected its final quarter earnings to be at or slightly better than the third quarter.
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