Transportation
Delta Expected to Take $500 Million Hit as Disruptions Start to Ease
- Citigroup cites earnings impact, Melius expects DOT fine
- Airline’s CEO says operations to return to normal Thursday
Travelers wait for their luggage at the Delta baggage claim at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia on July 23.
Photographer: Christian Monterrosa/BloombergThis article is for subscribers only.
Delta Air Lines Inc. is expected to take a sizable financial hit this quarter from the system breakdown that led to thousands of canceled flights and prompted a federal investigation of the carrier’s response.
Citigroup cut estimates for Delta’s third-quarter adjusted earnings by 60 cents a share in a new report to $1.37, citing “operational expenses and potential customer compensation costs” from the upheaval of the past few days. Analyst Stephen Trent also lowered his expectation for earnings before interest and taxes in the period by about $500 million.