Delta Expects a $30 Million Income Hit From Hurricane Florence
It pales in comparison to the damage estimates on the ground, which will continue to rise as insurance claims are filed and evacuees return to their homes, but Delta Air Lines itself is anticipating a $30 million pre-tax income hit due to Hurricane Florence. Florence smashed into the North Carolina coast in mid-September, stalling out and dumping staggering amounts of water on coastal areas while lashing homes and businesses with 90 mph winds.
The storm triggered nearly 3,000 flight cancellations and shut down nine airports across the Carolinas, many of which recognize Delta as their primary carrier. Boeing even went so far as to evacuate some of its Dreamliners from Charleston, South Carolina (CHS).
Delta is expected to report its Q3 2018 earnings during the month of October, and issued this nugget to give investors a heads-up on the impact Florence would have. It's worth noting that neither United nor American Airlines issued similar investor updates; to date, Delta's most prominent US-based global airline rivals have remained mum on the financial impact of the hurricane.
While $30 million is indeed a fair chunk of change, it's worth putting in perspective. Almost a year ago to the day, Delta warned investors that Hurricane Irma would cost it some $120 million in lost revenue as travel was disrupted throughout the southeast United States and Caribbean. An unprecedented computer outage in August 2016 was blamed for a $100 million hit, with another $125 million loss pinned on a total operational meltdown triggered by an unusually heavy parade of thunderstorms in April 2017.
Not to be lost in all of this, Delta has contributed some $1.5 million to Hurricane Florence relief efforts, joining American Airlines' $1 million donation to the American Red Cross. If you're interested in supporting the rebuilding efforts in the Carolinas, we've rounded up ways to donate right here.
H/T: Bloomberg
