Delta lost estimated $200 million from record-long US government shutdown, CEO says

Core Insights - The longest government shutdown on record resulted in an estimated financial loss of $200 million for Delta Air Lines, with a reported loss of about 25 cents per share due to increased refunds and decreased bookings during the 43-day period [1][5]. Impact on Air Travel - The shutdown, which began on October 1, caused significant delays and historic flight cancellations at 40 major airports, as unpaid air traffic controllers missed work due to stress and the need for additional income [2][4]. - The Federal Aviation Administration (FAA) mandated commercial airlines to cancel up to 6% of domestic flights to ensure safety, a decision described as necessary by Transportation Secretary Sean Duffy [2][7]. Recovery and Future Outlook - Despite the disruptions, Delta Air Lines experienced a busy Thanksgiving week and reported strong bookings for the end of the year, indicating a recovery from the shutdown's impacts [5]. - Delta's CEO expressed optimism about a strong December and a positive close to the year, suggesting that the effects of the shutdown were transitory [5]. Flight Restrictions - More than 10,000 flights were canceled between November 7 and November 16 due to the FAA's emergency order, which was lifted shortly before Thanksgiving, a peak travel period in the U.S. [5][7]. - The flight cuts initially started at 4% and increased to 6% before being reduced to 3% as air traffic controller staffing improved after the shutdown ended on November 12 [7]. Federal Employee Compensation - Air traffic controllers were among federal employees who worked without pay during the shutdown, missing two full paychecks, which led to public pressure for compensation [8][10]. - A week after the shutdown ended, only 776 controllers with perfect attendance received bonuses, while nearly 20,000 others were excluded, prompting criticism from lawmakers [10][11].