Government Shutdown Causing Delta $25 Million in Revenue

With the government shutdown, we’ve seen how TSA and FAA employees are being impacted without pay and travelers are suffering from longer security lines. Now, airlines are sharing how the shutdown is hurting their business.

Today, Delta Airlines claimed that it will lose $25 million in revenue this month because of the shutdown.

CEO Ed Bastian said that the $25 million is part of the revenue that comes from government contractors and employees, and with the government shutdown, fewer are traveling and spending money with the airline.

“We’re seeing a reduction in revenues in the month of January,” Bastian told CNBC.

Similarly to how Southwest Airlines’ Hawaii flights are stalled due to ETOPS approval, Delta is facing certification delays for a new aircraft, a brand new Airbus A220 jet, since FAA inspectors are not working.

The Airbus A220 was set to launch on January 31 and entice more high-paying business travelers who would appreciate the jet’s larger seats and windows.

. @delta CEO: Government shutdown is costing the airline $25 million this month

Delta will have to wait until after the shutdown for the FAA to approve certification before they can launch the aircraft in their daily routes.

Bastian also noted that with the shutdown Delta is trying to provide employees to assist TSA in airports across the United States.

“We’re providing a lot of people into the queues, helping take any of the non-security TSA functions off of the TSA’s hands to the extent that we can,” he said. “I think it’s hopefully going to be relatively smooth sailing for our customers.”

Delta is the first airline to share financial losses caused by the shutdown.

Source: Read Full Article