Longest government impasse hurt travel bookings
Delta Air Lines reported that the recent U.S. government shutdown reduced its pretax profit by about $200 million, following a noticeable softening in bookings during the historic halt in federal operations. The carrier estimated the earnings impact at roughly 25 cents per share for the current quarter.
Back in October, Delta had projected adjusted fourth quarter earnings between $1.60 and $1.90 per share. The disruption created a meaningful setback as travel services were strained and consumer confidence wavered.
Controller shortages worsened operational pressures
The shutdown exacerbated existing shortages among U.S. air traffic controllers, forcing the Trump administration to require airlines to make temporary schedule cuts to ease staffing burdens. Despite these efforts, delays and cancellations exceeded expectations in the days leading up to the reopening of government.
Many critical aviation employees — including controllers and Transportation Security Administration staff — continued working without pay, adding further stress to the system.
Demand outlook remains resilient
In a regulatory filing ahead of an industry conference, Delta emphasized that travel demand remains healthy and bookings into 2026 continue to look strong. The airline maintains confidence in long term fundamentals despite the temporary setback tied to the shutdown.
Delta CEO Ed Bastian, along with other aviation leaders, has urged lawmakers to ensure essential air travel personnel are compensated during any future shutdown to prevent system wide instability.
