Superstorm Sandy Cost Delta $25 Million in November Profit
Superstorm Sandy dinged Delta Air Lines' (NYS: DAL) November profits by as much as $25 million, and November revenues by $30 million, the company said in an SEC filing today. For context, the company made more than $850 million in 2011. Despite "strong Thanksgiving demand" the company wasn't able to completely make up for the chaos caused by Sandy, which forced thousands of flight cancellations and delays across the Atlantic Seaboard.
Delta's unit revenues for November improved 2.5% versus prior year, the company reported, one point less than it would have been without Sandy's impact. The storm also "negatively impacted the company's refinery start up, slowing production and efficiency levels at the plant."
The storm, which ravaged the East Coast in late October, severely affected Delta's top and bottom lines in that month as well. The company estimated in early November that October revenues were off by as much as $45 million and profits decreased by roughly $20 million as a result of the widespread changes that had to be made to flight schedules. Delta canceled more than 3,500 flights in October, according to a November SEC filing.
The article Superstorm Sandy Cost Delta $25 Million in November Profit originally appeared on Fool.com.John Divine has no positions in the stocks mentioned above. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.