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Delta shares gyrate after big drop in revenue in part from computer outage

A Delta Airlines airplane takes off from Ronald Reagan Washington National Airport in Arlington, Virginia.
Saul Loeb | AFP | Getty Images
A Delta Airlines airplane takes off from Ronald Reagan Washington National Airport in Arlington, Virginia.

Shares of Delta Air Lines seesawed Friday after the carrier reported a large decline in revenue for August, in part from the computer outage at its Atlanta headquarters earlier that month.

The stock dropped nearly 1 percent in premarket trading after the company reported a year-over-year fall in passenger revenue for August. The shares recovered at the open, however, and ended the day up 0.95 percent.

Delta said Friday that passenger revenue per available seat mile declined 9.5 percent.

The company said the outage it experienced earlier in August, which lasted three days and canceled 2,300 flights, negatively impacted revenue by about $100 million.


Additionally, the company cited continued pressure from "close-in domestic yield" weakness — pricing on tickets purchased close to the time of travel — the ongoing supply-demand imbalance in the trans-Atlantic, and headwinds from its yen hedge positions as contributing to the drop.

"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," Delta's CEO, Ed Bastian, said in a release. "Our recovery effort exemplified the hard work and determination of Delta people worldwide, and all 80,000 remain dedicated to regaining your trust."

In July, the airline forecast a drop of 4 to 6 percent in unit revenue for the third quarter ending in September.

Delta's stock is down more than 26 percent year to date.

DAL 2016 Chart