Delta CEO Says Airline Recovering After Shutdown, but Costs Will Be ‘Significant’
The airline has restored most operations after more than 2,000 flight cancellations.
(Atlanta, Georgia) Delta Air Lines (NYSE: DAL) shared an update on its website from CEO Ed Bastian explaining that it has largely recovered from widespread flight disruptions tied to the recently ended U.S. government shutdown and related air-traffic control staffing shortages.
Image of Delta Air Lines CEO Ed Bastian speaking about the airline’s trajectory post-shutdown during a CNBC interview today courtesy of Delta AIr Lines.
Bastian said that while the impact is expected to carry a "significant" financial cost,he hopes to be "as back to normal as you can get by Friday or Saturday," during a CNBC interview that aired earlier today (Nov. 12).
During the interview, Bastian said that while Delta was running around a 6 percent cancellation rate, the "industry through the weekend was actually running around 10 percent."
The Delta Air Lines News Hub also shared: “All planned FAA-directed flight cancellations through Wednesday, Nov. 12 have been completed. As of 12:00 p.m., there are approximately 280 Delta mainline and 215 Delta Connection cancellations out of more than 5,200 flights scheduled for Monday, Nov. 10.”
Image of Delta Air Lines Boeing 737 airliner courtesy of Delta AIr Lines.
Late last week, the Federal Aviation Administration ordered airlines to reduce operations at about 40 major airports during the shutdown because of limited staffing.
"Those monies will be gone," said Bastian. "Yes, you have people deferring trips, but fundamentally, that’s gone. We had 2,500 cancellations for the last week, which is a crazy amount. It’s going to cost Delta a significant amount. We’ll still have a strong quarter. It won’t wipe out our profits by any means," he continued.
Delta said it is working closely with federal officials as operations normalize. “We continue to operate the vast majority of our flight schedule in coordination with the FAA. As always, safety remains our top priority,” the airline said.
Despite the turbulence, Bastian said he remains confident in Delta’s outlook heading into the holiday travel season, citing strong consumer demand and operational resilience. The airline celebrated its 100th anniversary by ringing the opening NYSE bell this morning and is the first U.S. airline to reach that milestone.
