Shutdown costs Delta $25 million in delays
Delta Air Lines expects to lose $25 million in revenue this month from the partial government shutdown that is also creating checkpoint delays and long lines at the airline’s Atlanta hub.
Delta’s revenue is more than $3 billion a month, so the setback isn’t huge, and airline executives say overall travel demand remains healthy. Still, it contributed to a tepid forecast of first-quarter profit.
The Transportation Security Administration initially said that 7.6 percent of its airport screeners missed work on Monday, but it later revised the number down to 6.8 percent. That’s still well more than double the 2.5 percent absent rate on the comparable Monday last January. With fewer screeners on the job, it took passengers at Atlanta’s airport more than an hour to get through security during peak periods. Airports in Miami and Houston have closed checkpoints to consolidate screeners at remaining checkpoints.
Ahead of the shutdown, Delta said it earned $1.02 billion in the fourth quarter, up from $299 million a year earlier on a 5 percent boost in revenue, lower income taxes, and a gain from investments. At $1.30 per share excluding special items, the results slightly beat Wall Street expectations.