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Delta Air Lines: August computer systems outage cost $100 million

Sep 02, 2016

ATLANTA, GA - Delta Air Lines Inc said its revenue for August was reduced by about $100 million due to an outage that led to the cancellation of 2,300 flights over three days.

Passenger revenue per available seat mile (PRASM), a key measure of an airline's performance that measures sales against flight capacity, declined 9.5 percent in August from a year earlier, its biggest drop in nine months.

Excluding the impact of the outage, Delta's unit revenue was below expectations, J.P.Morgan's Jamie Baker wrote in a note.

Baker said he expects Delta to cut its third-quarter operating margin to at least 17-19 percent from its current forecast of 19-21 percent.

The No. 2 U.S. airline by passenger traffic said last month a power outage hit its computer systems, leading to the flight cancellations.

Delta Air Lines: August computer systems outage cost $100 million



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