Delta Says Computer Breakdown Cut Revenue by $100 Million
Delta Air Lines Inc. said the computer failure that caused 2,300 flight cancellations last month cut sales about $100 million and reduced a key revenue figure.
Passenger revenue for each seat flown a mile, an industry benchmark, fell 9.5 percent in August, in part because of the outage and subsequent recovery efforts, the carrier said in a statement Friday. The breakdown reduced unit revenue, as the measure is also known, by two percentage points, Delta said.
The country’s second-largest airline earlier forecast that third-quarter unit revenue would fall 4 percent to 6 percent.
A power-control module at Delta’s Atlanta computer center failed and caught fire Aug. 8, shutting down electricity to the system. About 300 of the airline’s 7,000 servers weren’t wired to backup power, the company had said.
The shares fell 1 percent to $36.45 at 9:15 a.m. in premarket trading. The stock tumbled 27 percent this year through Thursday.