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U.S. Shutdown Slashes USD200B from Delta Air Lines Q4 Profits
(MENAFN) Delta Air Lines revealed Wednesday that the recent U.S. federal government shutdown will slash approximately $200 million from its fourth-quarter profits as prolonged disruptions crippled operations nationwide.
The 43-day closure—which prompted regulators to impose sweeping air traffic restrictions at major airports last month—will carve roughly 25 cents per share from the company's earnings, Delta CEO Ed Bastian disclosed to investors.
The record-breaking shutdown, which concluded November 12, caused chaos for tens of thousands of flights throughout the nation. The Federal Aviation Administration mandated flight reductions at 40 of America's busiest airports in early November due to critical shortages of air-traffic controllers.
Throughout the 10-day period of flight constraints, Delta's bookings plummeted between 5 percent and 10 percent as corporate travel weakened significantly and refund requests skyrocketed, Bastian explained.
However, the Atlanta-headquartered airline has staged a swift recovery with booking momentum rebounding to pre-shutdown projections following the government's reopening, he noted, emphasizing that travel demand appears robust entering the upcoming year.
Alaska Air Group, parent company of Alaska Airlines and Hawaiian Airlines, announced Wednesday that shutdown-related revenue losses are anticipated to reduce its adjusted earnings by 15 cents per share during the fourth quarter.
The carrier reported canceling 600 flights stemming from government-imposed air traffic cutbacks, disrupting approximately 40,000 passengers.
Alaska's revenue performance deteriorated sharply throughout the shutdown turmoil and has failed to recover to pre-crisis levels, the company stated.
The 43-day closure—which prompted regulators to impose sweeping air traffic restrictions at major airports last month—will carve roughly 25 cents per share from the company's earnings, Delta CEO Ed Bastian disclosed to investors.
The record-breaking shutdown, which concluded November 12, caused chaos for tens of thousands of flights throughout the nation. The Federal Aviation Administration mandated flight reductions at 40 of America's busiest airports in early November due to critical shortages of air-traffic controllers.
Throughout the 10-day period of flight constraints, Delta's bookings plummeted between 5 percent and 10 percent as corporate travel weakened significantly and refund requests skyrocketed, Bastian explained.
However, the Atlanta-headquartered airline has staged a swift recovery with booking momentum rebounding to pre-shutdown projections following the government's reopening, he noted, emphasizing that travel demand appears robust entering the upcoming year.
Alaska Air Group, parent company of Alaska Airlines and Hawaiian Airlines, announced Wednesday that shutdown-related revenue losses are anticipated to reduce its adjusted earnings by 15 cents per share during the fourth quarter.
The carrier reported canceling 600 flights stemming from government-imposed air traffic cutbacks, disrupting approximately 40,000 passengers.
Alaska's revenue performance deteriorated sharply throughout the shutdown turmoil and has failed to recover to pre-crisis levels, the company stated.
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