Delta's CEO said the airline will lose $25 million this month due to the government shutdown
- Delta Air Lines CEO Ed Bastian told CNBC on Tuesday that the airline will lose $25 million in revenue in January and any other full month in which the federal government is shut down.
- The lost revenue will result from reduced travel by government employees and contractors, Bastian told the channel.
- Delta reported on Tuesday a profit of $1.02 billion ($1.49 per share) on revenue of $10.74 billion.
Delta Air Lines CEO Ed Bastian told CNBC on Tuesday that the airline will lose $25 million in revenue in January and any other full month in which the federal government is shut down. The lost revenue will result from reduced travel by government employees and contractors, Bastian said.
Delta is also facing delays in the certification process for new aircraft, he added.
While some airports have experienced longer security lines and even line closures, Bastian told CNBC that most airports Delta uses did not report any significant increases in the length of security lines.
"I think, from our perspective, it's going to be a manageable situation. Hopefully, it doesn't last too much longer," he said of the government shutdown.
Delta reported on Tuesday a profit of $1.02 billion, or $1.49 per share, during the fourth quarter of 2018, an improvement over the fourth quarter of 2017, when it reported a profit of $0.3 billion, or $0.42 per share. The airline's fourth-quarter revenue for 2018, $10.74 billion, was also higher than the $10.23 billion it earned during the fourth quarter of 2017.
The federal government shutdown, which began on December 22, is the longest in US history. Transportation Security Administration (TSA) employees have been required to work without pay during the shutdown, though many have been absent from airports, and Hydrick Thomas, the president of the TSA worker's union, said some had quit or considered quitting. TSA workers will be eligible to receive back pay once the shutdown ends.