US aviation giant evaporates 200 million USD

Bùi Đức |

Delta Airlines suffered a $200 million loss due to a prolonged government shutdown, causing bookings to decline and many flights in the US to be canceled.

Delta Airlines CEO Ed Bastian said the longest government shutdown in history caused the airline an estimated loss of $200 million.

According to Mr. Bastian, ticket refunds increased sharply while bookings slowed down amid the uncertainty of the aviation industry due to the government's 43-day closure, contributing to Delta losing about 25 cents of profit per share.

When the Minister of Transport said there were not enough inspectors, it raised doubts about the safety of travel, Bastian said, emphasizing that it caused many customers to delay booking tickets for the holidays.

Although air operations have been interrupted, Mr. Bastian said that the impact of this closure has gradually gone away because Delta Airlines has just had a very busy Thanksgiving week with a sharp increase in ticket bookings until the end of the year.

We expect a good December and a strong end to the year, said the Director

The closure, which began on October 1, led to prolonged flight delays at many major airports and record number of flight cancellations at the 40 busiest airports in the US, as many inspectors were not forced to work without pay, leading to stressful work stoppages to find extra work.

As the situation continues into the second month, the Federal Aviation Administration (FAA) has issued an emergency order requiring airlines to cancel up to 6% of domestic flights - a decision that Transport Minister Sean Duffy described as necessary to ensure flight safety.

Accordingly, more than 10,000 flights were cut from November 7 - when the FAA's order took effect - until the restrictions were completely lifted on November 16.

The rate of trip cuts started at 4% and then increased to 6% before the FAA cut it to 3%, when the situation of controller personnel improved after the government reopened on November 12.

Meanwhile, airports affected by flight restrictions during the closure include major hubs in New York, Chicago, Los Angeles and Atlanta.

Bùi Đức
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