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Delta Air Lines revenues hit by Hurricane Irma impact

Delta Air Lines revenues hit by Hurricane Irma impact

Delta Air Lines has reported adjusted pre-tax income for the September 2017 quarter of $1.7 billion, a $182 million decrease from the same period last year. 

Pre-tax income includes a $120 million reduction from the operational disruption following Hurricane Irma that hit the Caribbean, Florida, Georgia and, specifically, Delta’s hub in Atlanta.

“While we faced a number of challenges this quarter, including multiple hurricanes and an earthquake in Mexico, I am proud of how Delta people responded and still delivered an outstanding performance this quarter,” said Ed Bastian, Delta chief executive officer. 

“Having just completed the busiest summer travel season in our history, we have good momentum, a determined team and a solid pipeline of initiatives to grow earnings and margins.”

To assist customers and employees in affected regions, Delta operated nine humanitarian flights, added more than 12,000 additional seats to impacted cities and shipped more than 600,000 pounds of relief supplies. 


Delta’s operating revenue of $11.1 billion for the September quarter was up 5.5 per cent, or $577 million versus prior year, despite a $140 million reduction from Hurricane Irma. 

Passenger revenue increased $328 million, including $160 million from Delta’s Branded Fares initiatives. 

Passenger unit revenues increased 1.9 per cent on 1.6 per cent higher capacity.

Cargo revenue increased 11.5 per cent, driven by higher volumes in freight and mail. 

Other revenue increased 18.4 per cent primarily due to higher loyalty revenue and third-party refinery sales.

“Three of four entities reported positive unit revenues, and we see continued opportunity in business yields. 

“We expect fourth quarter unit revenues to be up two to four percent with all entities in positive territory by year end,” said Glen Hauenstein, Delta president. 

“Our commercial platform of delivering network efficiency, driving customer innovation and improving customer choice should allow us to deliver sustained positive unit revenue, while maintaining our industry-leading revenue premium.”