Delta Air Lines said Tuesday morning that the partial government shutdown will hurt its financial results for the first quarter of the year.
In an appearance on CNBC Tuesday morning, Delta CEO Ed Bastian said the shutdown is costing the company $25 million in revenue this month as fewer government contractors and employees travel.
The Atlanta-based carrier, which faces challenges in growing its profit margins this year, said it expects its unit revenue growth to be limited due to "the ongoing government shutdown," along with currency headwinds and the timing of Easter.
In Atlanta on Monday, “we had some very long lines,” Bastian said on CNBC. “Most of our airports are reporting no material change in the line waits,” he said, and “this morning we’re anticipating being just fine in Atlanta.”
The airline's planned debut of the Airbus A220 later this month could be delayed due to the shutdown.
“If we get the certification back on schedule in the next week, we will” keep the debut on schedule, Bastian said on CNBC. “If not, we’ll delay it until the FAA inspectors come back to work.”
Bastian said he “encouraged the elected officials to do their very best to resolve their differences as quickly as possible. We’re not taking sides on the debate, but we need to get the business moving again.”
Otherwise, he said the $25 million impact could continue as a monthly rate. “Hopefully it doesn’t last too much longer,” Bastian said.
Delta detailed the impact of the shutdown as it reported $3.9 billion in net income for 2018, up 23 percent from $3.2 billion in 2017.
The company grew operating revenue by 8 percent to $44.4 billion in 2018, while operating expense increased 11 percent to $39.2 billion.
But it benefited from a decrease in interest expense and a $1 billion non-cash decline in income taxes. Delta is not yet a cash taxpayer due to the carry-forward of past years’ losses, but it recorded a benefit from federal tax reform.







