A Disappointing Summer for Delta

The popular airline company Delta (NYSE: DAL) has released quarterly earnings on Thursday, revealing mixed results for what should be the peak season for sector. The company’s Net income for July, August and September of $1.26 billion, or $1.70 per diluted share, are inline with analyst’s expectations, yet taking into consideration benefits from smaller fuel prices and a stable economy, Delta’s earnings report was not that impressive.

Delta’s operating revenue is $10.5 billion, which is a drop of 5.6%, or $624 million, for the quarter, which included $100 million from the technology outage that occurred earlier this summer, because of which 2,300 flights were canceled over three days. A significant portion of the loss is also a result of an investment in recovery that was needed as a result of the outage.

Delta’s CEO Ed Bastian said in a statement, “We apologize once more to those who were impacted by the outage and have already taken action to make sure an event like this doesn’t happen again… The operation is back and running stronger than ever.”

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