Thu, Jan 17, 2019
Blames Reduction In Travel By Government Employees For Losses
The partial government shutdown is apparently starting to pinch at least one airline. Delta CEO Ed Bastian says that with government employees not traveling the past month, his airline has lost some $25 million in revenue.
Bastian told CNBC that Delta will lose about $25 million per month for the duration of the partial shutdown, according to a report from USA Today.
He also said that security lines at airports have gotten longer as more TSA workers are calling in sick during the impasse between Congressional Democrats and President Trump, but he said long waits are "sporadic" and not the norm. And anything requiring FAA approvals, such as certification of new aircraft, is sitting on the back burner.
But Delta also reported fourth-quarter and full-year profits on Tuesday. Adjusted pre-tax income for the December quarter 2018 was $1.2 billion driven by over $700 million of revenue growth, allowing the company to fully recapture the $508 million increase in adjusted fuel expense and produce an 11 percent adjusted pre-tax margin. Adjusted earnings per share increased by 42 percent year over year to $1.30.
For the full year, adjusted pre-tax income was $5.1 billion, a $137 million decrease relative to 2017 as the company overcame approximately 90 percent of the $2 billion increase in fuel expense. Full year adjusted earnings per share were $5.65, up 19 percent compared to the prior year as the company recognized benefits from tax reform and a four percent lower share count, according to a company news release.
(Image from file)
More News
Aviation Governance Secured...At Least For a While The National Business Aviation Association similarly applauded the passage of the FAA's recent reauthorization, contentedly recou>[...]
Emphasis On Growing The Future of Aviation Through Concentration on 'AFFORDABLE FLYERS' It's been a number of years since the Latest Edition of Jim Campbell's HUGE SportPlane Resou>[...]
Amazilia Aerospace GmbH, Develops Digital Flight Control, Flight Guidance And Vehicle Management Systems Textron eAviation has acquired substantially all the assets of Amazilia Aer>[...]
Honeywell's Primus Brings New Tools and Niceties for Hawker Operators Hawker 4000 business jet operators have a new installation on the table, now that the FAA has granted an STC f>[...]
Company Celebrates Niche-but-Important Advancement in Industry Standards Echodyne has announced full integration of its proprietary 'EchoFlight' radar into the e American Aerospace>[...]