Delta's CEO claims the partial shutdown is costing $25 million in lost revenue this month

Junie Sihlangu
Jan 16, 2019
12:31 P.M.
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The partial federal shutdown has passed the 20-day mark this week. On Tuesday, Delta Airline’s CEO has claimed that it would cost the company $25 million this month alone.


He said the loss in revenue was due to fewer government employees and contractors traveling around. A number of federal employees have been without pay since the shutdown began.

Delta Airline CEO Ed Bastian blamed the partial government shutdown for the company losing millions this month. He also revealed that President Donald Trump's shutdown could delay the launch of the new Airbus 220 jet.


For more on this story go to our Twitter account @amomama_usa. The new airplane was scheduled to go into service on January 31 from New York's LaGuardia.


Unfortunately, Federal Aviation Administration (FAA) inspectors are currently on furlough and they are the ones responsible for certifying the airline's operational plans. Bastian also mentioned that there appeared to be longer airport security lines because of an increase in the number of Transportation Security Administration (TSA) workers calling in sick.


He explained that the airline's Atlanta hub experienced the worst effects on Monday morning. At one point that had 90-minute waits which he called "substantially longer than expected.''


Bastian shared that the lines at the Hartsfield-Jackson International Airport eventually settled down in the afternoon. That international airport is said to be the world's busiest.


Delta’s CEO further acknowledged that the long waits are not the norm across the country. He said, "I think it's sporadic,'' and that "Most of our airports are reporting no material change in line waits.''


Bastian explained how they were handling the situation:

"We're providing a lot of people into the queues, helping take any of the non-security TSA functions off of the TSA's hands to the extent that we can. I think it's hopefully going to be relatively smooth sailing for our customers.''

The Internal Revenue Service (IRS) will be recalling around 46,000 of its employees who were furloughed by the government shutdown. The employees amounted to nearly 60 percent of its workforce.

The staff is being recalled in order to handle tax returns and pay out refunds but they won’t be paid during the shutdown.

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