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
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.