Delta Projects $200 Million Q4 Profit Hit From Federal Shutdown

Delta Air Lines says the federal government shutdown will cut its fourth-quarter profit by roughly $200 million due to reduced flight capacity, weakened bookings, and higher refunds.

By Yuliya Karotkaya Published: Updated:

Delta Air Lines is warning investors of a significant fourth-quarter impact, estimating that the recent U.S. federal government shutdown will reduce pre-tax profitability by about $200 million.

According to CEO Ed Bastian, the operational disruption began on November 7, when the FAA implemented reduced flight capacity at 39 U.S. airports. The slowdown lasted roughly 10 days but was enough to trim bookings by 5% to 10% as travelers – particularly business flyers – pulled back.

Refund requests also rose sharply during the period, adding to the financial drag. Bastian noted that many corporate travelers typically fit in a final trip ahead of Thanksgiving, but this year’s uncertainty kept them grounded.

Despite the temporary setback, Delta reports that broader demand remains aligned with expectations. December bookings are performing well, and early 2025 trends appear strong based on the airline’s latest regulatory filing.

Looking ahead, Bastian reaffirmed Delta’s outlook, stating the company still expects to deliver approximately $5 billion in profit for 2025.