Delta’s April meltdown cost $125 million, but company still made $1.2 billion quarterly profit


In spite of a $125 million hit due to 4,000 flight cancellations during its April meltdown, Delta Air Lines still made a $1.2 billion quarterly profit.

Most of the impact from the April operational meltdown that followed a one-day storm was a $115 million headwind to revenue.

Atlanta-based Delta’s profit for the second quarter of the year was down 21 percent from $1.5 billion in the same quarter a year ago.

Delta CEO Ed Bastian said in a written statement that he is encouraged by improvements in unit revenues, but acknowledged that “2017 is a transition year.” The airline is tackling rising labor costs and competitive pressures allowing business travelers to pay less for last-minute trips.

Delta said its “branded fares,” including Basic Economy with limited flexibility and Comfort+ with extra legroom, in addition to regular coach class, business class and first class, increased its revenue by $100 million.

The company calls such moves “commercial initiatives to provide customers more choice,” which is also helping improve unit revenue, according to a statement from Delta president Glen Hauenstein.

The company had record operating revenue in the quarter: $10.8 billion, up 3 percent year-over-year.

But its operating expense increased 9 percent, to nearly $8.8 billion.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter Kelly Yamanouchi keeps you updated on the latest news about Hartsfield-Jackson International Airport, Delta Air Lines and the airline industry in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories: 

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com.

In other Airlines news:


Reader Comments ...


Next Up in Travel

When New York City was a (literal) battlefield
When New York City was a (literal) battlefield

NEW YORK — New York City is a battlefield. I know what you’re thinking — psychological warfare, the endless grim clashing of economic forces — but I am being literal. When we ponder America’s defining war, the Revolutionary War, we think of Bunker Hill, or Saratoga, or Lexington and Concord, yet its largest battle, a vast...
Family that hits the slopes together manages to stay together in Steamboat Springs
Family that hits the slopes together manages to stay together in Steamboat Springs

"I was thinking, over New Year's, we could go on vacation with my family," my husband, Matt, said, and my heart stilled. I love Matt's family. Really love them. But they're a large, strong-minded, active bunch. They all grew up on a farm in North Dakota, where they learned to drive a tractor at 7 years old. They're good, generous, neighborly...
Ireland by train: Luxurious travel from Belfast to Waterford
Ireland by train: Luxurious travel from Belfast to Waterford

There is something about trains that has captivated me since childhood. Maybe it’s the gentle rocking back and forth as it crisscrosses the country; maybe it’s the mournful sound of the train’s whistle in the night, with its promise of places yet to be seen — and perhaps, best of all, it’s the knowledge that I’m...
How to save yourself a (snow)pile of cash

With a whiff of winter in the air, skiers' thoughts naturally drift to snowy mountains, fireside après-ski drinks and the macroeconomic concept of inelastic demand - used to describe products for which price can increase astonishingly, regardless of supply, without hurting demand. This is especially true of daydreamers who want to take their...
Special effects are added to Queen Mary’s ghost tour
Special effects are added to Queen Mary’s ghost tour

LOS ANGELES — The Queen Mary, a retired ocean liner that has become a floating hotel in the Long Beach harbor, has turned to the type of special effects made famous in Hollywood to try to boost visitor numbers. For more than 15 years, the ship has offered a ghost tour — dubbed the Ghosts and Legends Tour — to draw and scare fans who...
More Stories