Delta Air Lines canceled more flights in January 2014 than it did in the entire year of 2013, contributing to a multi-million dollar financial hit.
Ed Bastian, president of Atlanta-based Delta, said the airline has canceled 17,000 flights so far this year due to storms, most notably those that hit Atlanta and the East Coast.
The storms will result in a $55 million hit to first quarter earnings, but Delta still expects a “strong profit” for the period. In fact, the flight cancellations, resulting in fewer flights flown, led to an increase in unit revenue.
The disruptions included thousands of flight cancellations at its largest hub at Hartsfield-Jackson International Airport during the snow and ice storms that hit Atlanta in late January and in February.
Delta employees “did a great job of mitigating the damage — recapturing as much revenue as possible,” Bastian told investors at a J.P. Morgan investor conference in New York on Monday.
Separately, Bastian said the oil refinery Delta bought a year and a half ago may report a “slight loss” for the first quarter, but he expects it to turn a profit for the full year 2014. The refinery was down for operational improvements late last year and early this year for about 45 days, Bastian said.
Meanwhile, he said the refinery’s jet fuel production has helped to “keep a lid” on jet fuel prices.
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