The record-long government shutdown that ended last month cost Delta Air Lines an estimated $200 million, the company’s CEO said Wednesday.
Delta is one of several large airlines heavily affected by the 43-day government shutdown. Many airlines had to cancel or delay flights to accommodate a lack of air traffic controllers, who weren’t paid during the shutdown.
Delta is the first airline to discuss the specific financial effect of the government shutdown. CEO Ed Bastian said refunds “grew significantly” as bookings slowed from the government’s closing. The company lost about $0.25 per share as a result.
The shutdown affected airports and airlines across the country, forcing the Federal Aviation Administration to cut flights to accommodate the lack of controllers. Transportation Secretary Sean Duffy said that the move was necessary to guarantee the safety of air travel.
“You’ve got the secretary of transportation telling people we don’t have controllers, questioning the safety at some level of travel, which has never before happened,” Bastian said, adding that it led to customers holding off on booking holiday travel.
More than 10,000 flights were cut between Nov. 7, the date the FAA order took effect, and Nov. 16, a few days after the end of the shutdown. Bastian said the company rebounded through Thanksgiving and that bookings through the end of the year have been “really strong.”
“I think we’re through it and it was transitory,” Bastian said of the shutdown. “We’re looking forward to a strong December, a strong close to the year.”
Controllers had been a hot-button topic during the shutdown. President Donald Trump ordered them to return to work near the end of the shutdown on Nov. 10, before they received any back pay. He said any controller who didn’t take time off would receive a $10,000 bonus and recommended that any controller who did take time off leave.
“For those that did nothing but complain, and took time off, even though everyone knew they would be paid, IN FULL, shortly into the future, I am NOT HAPPY WITH YOU. You didn’t step up to help the U.S.A. against the FAKE DEMOCRAT ATTACK that was only meant to hurt our Country,” Trump wrote on Truth Social.
“If you want to leave service in the near future, please do not hesitate to do so, with NO payment or severance of any kind!” he added.
The FAA announced after the shutdown that only controllers and technicians with perfect attendance would receive the bonus. Sen. Tammy Duckworth (D-IL) sent a letter to Duffy on Wednesday demanding he pay the rest of the FAA workers.
“It is wrong to financially penalize these Federal employees for responsibly managing life events beyond their control while working without pay,” she said.
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Duffy compared the controller who receives bonuses to a test-taker who got a 100% on their exam receiving a sticker.
“If you got 100% on your test, you get the sticker that’s a scratch-and-sniff sticker,” he said, remarking that controllers and others would still receive back pay.