Delta Releases August Performance, Computer Outage Cost $100M

Staff Report From Georgia CEO

Tuesday, September 6th, 2016

Delta reported financial and operating performance for August 2016, during which the airline saw declines in unit revenues and experienced a significant outage.

Consolidated PRASM for August was down 9.5 percent compared to the same timeframe a year ago, according to Delta's press release. Delta said its August outage negatively impacted revenue by roughly $100 million for the month – or by two points of PRASM.

The airline also continues to see pressure from close-in domestic yield weakness – pricing on business travel tickets purchased close to the time of travel. Other pressure points cited are ongoing supply-demand imbalance in the trans-Atlantic and headwinds from its Yen hedge positions.

Despite the outage causing significant operational disruptions, Delta’s mainline completion factor – the percentage of flights that were not canceled - came in at 98 percent for the month, with preliminary data showing 79.9 percent of those flights arriving on time. Delta’s operations were back to normal three days after the outage occurred and was fixed.

“We are grateful to our customers for continuing to rely on Delta for the superior customer service and operational performance you’ve come to expect from us,” said Ed Bastian, CEO – Delta Air Lines. “Our recovery effort exemplified the hard work and determination of Delta people worldwide, and all 80,000 remain dedicated to regaining your trust.”