Delta Expects a $30 Million Income Hit From Hurricane Florence
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Featured image by Darren Murph / The Points Guy.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.