Delta says December outage, storm took $60 million toll

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Major airlines JetBlue, Delta Airlines, United Airlines, Southwest and American Airlines have canceled all flights for the remainder of the day.

Delta Air Lines took a $60 million hit from the combined impact of the massive Atlanta airport power outage and the winter storm that brought snow to Atlanta in early December.

The company tallied the toll as it reported nearly $3.6 billion in net income in 2017. That’s down 18 percent year-over-year from nearly $4.4 billion in 2016.

Delta faced rising fuel costs in 2017 and $475 million of expense from a new pilot labor contract, which included immediate raises of 18 percent.

Delta said it expects to see benefits from tax reform this year, which it expects will partially offset increases in fuel costs. The company expects its tax rate to be 22 percent to 24 percent.

The airline had to record a one-time charge of $150 million to account for foreign earnings and deferred tax assets and liabilities.

Delta’s chief financial officer Paul Jacobson said the airline’s focus for 2018 is to cut back on unit cost increases, bringing them “back in line with our long-term 0 to 2 percent target.”

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