Delta Flags $200 Million Cost Hit From Government Shutdown

Delta Air Lines, Inc. (NYSE:DAL) stock rose Wednesday after management reiterated a strong demand backdrop at the Morgan Stanley Global Consumer & Retail Conference. The carrier said December-quarter demand remains strong.

Travel bookings have already bounced back from a brief government shutdown dip, keeping revenue trends on track.

The company also signaled encouraging demand indicators heading into early 2026.

However, Delta warned that pre-tax profit will face a $200 million impact this quarter, equal to roughly 25 cents per share.

Domestic travel remains a bright spot. An estimated 82 million Americans traveled over Thanksgiving, marking the highest volume ever recorded for the holiday.

Analyst Commentary

Analysts at Bank of America Securities (BofA) said the shutdown disruptions were temporary and not a sign of weakening consumer appetite for air travel.

The analysts said the recent government shutdown caused temporary operational disruptions for major U.S. airlines, but it was a one-time external issue and not a sign of slowing travel demand.

Recent Earnings

In October, Delta Air Lines posted third-quarter operating revenue of $16.7 billion, marking a 6% year-over-year increase. GAAP EPS came in at $2.17, a 10% rise from the previous year, while adjusted EPS was $1.71, surpassing the consensus estimate of $1.52.

For the full year, Delta has narrowed its adjusted EPS guidance to $6.00, near the upper end of its previous forecast of $5.25–$6.25, aligning with analysts' expectations of $5.76.

DAL Price Action: Delta Air Lines shares were up 2.64% at $66.86 at the time of publication on Wednesday, according to Benzinga Pro data.

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