All Stories

Categories

BMTN Info

Powered by WordPress.com VIP

Delta’s computer outage last month cost it $100 million

You may have forgotten Delta’s systemwide computer outage that made the airline cancel thousands of flights, but after looking at the August finances, there is no way the company will forget.

Delta, the Atlanta-based airline and largest carrier at Minneapolis-St. Paul International Airport, said in a monthly news release the outage cost the company roughly $100 million in revenue for the month.

“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,” Ed Bastian, Delta Air Lines CEO said in the release. “Our recovery effort exemplified the hard work and determination of Delta people worldwide, and all 80,000 remain dedicated to regaining your trust.”

Delta revealed the passenger unit revenue – one of the major ways airlines track cost – was also down 9.5 percent compared to last August.

But only two percent of that decrease was due to the system error – the rest was due to competition with cheaper airlines and high supply of flights across the Atlantic.

However, despite the challenges from the computer outage, the percentage of flights not canceled for the month was at 98 percent. (To compare, August 2015 was 99.8 percent for Delta.)

And nearly four out of every five flights arrived on time.

Delta is switching airports in Tokyo

In other news for Delta, the airline got confirmation that flights from MSP to Tokyo will be landing at a different airport.

Starting Oct. 29, flights from MSP will land at Tokyo’s Haneda airport instead of the Narita airport, the Star Tribune reports. The U.S. Department of Transportation awarded Delta a Haneda route last month, but has now formally confirmed the switch.

If Delta hadn’t been awarded a Haneda route, the airline said it would be forced to nix its MSP-Tokyo route.

 

Comments

 

More in News