Rival Southwest Airlines Co. reported lost revenue and extra costs totaling $54 million from a July outage that resulted in a similar number of canceled flights.
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Paul International Airport, said in a monthly news release the outage cost the company roughly $100 million in revenue for the month. About 300 of the airline’s 7,000 servers weren’t properly connected to the backup energy source.
The firm noted that Delta might also be more aware of the potential impact from hurricane Hermine at that time as well.
Passenger revenue per available seat mile (PRASM), a key measure of an airline’s performance that measures sales against flight capacity, declined 9.5 per cent in August from a year earlier.
Delta’s technical problems in August were caused by a malfunction in the electrical system that powers computers at the airliner’s Atlanta headquarters. Delta attributed 2 points of the decline to the outage. The company also said there are too many flights being offered between the USA and Europe, forcing the airline to drop airfare prices.
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Delta Air Lines’ strengths such as its growth in earnings per share, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity outweigh the fact that the company has had lackluster performance in the stock itself. “Our recovery effort exemplified the hard work and determination of Delta people worldwide, and all 80,000 remain dedicated to regaining your trust”.
