The IT outage in July 2024 that caused unprecedented chaos on the aviation industry has weighed on Delta's third quarter outlook after it published a revised guidance on September 12, 2024.
Total revenue for the third quarter is expected to be flat to up 1%, compared to 2023's third quarter. It had initially anticipated revenues to be up 2-4%. The IT outage - caused by a single content update from cybersecurity software firm Crowdstrike to Windows hosts - was reported to have impacted the revenue outlook by 2.5 percentage points.
Delta had said previously it anticipated a $380 million hit for the third quarter from the outage and is seeking to recover a total of at least $500 million in damages.
Capacity, which was previously set to be up 5-6% over last year, is now expected to be up 4% with a 1.5 percentage point impact from the Crowdstrike issue. CASM excluding fuel costs is forecast to be up 5.5%, surpassing previous estimations of 1-2% increase, with the IT outage set to cause a 3 percentage point increase.
However, shares had spiked up, with the airline stating: "Full year 2024 earnings per share is expected to be at or above the mid point of guidance of $6 to $7, excluding the 45 cent impact from the IT outage on September quarter earnings per share." Shares then levelled back down.
Lower market fuel prices may see fuel price per gallon slightly below guidance. Furthermore, non-operating expense is lower than previously expected due to a $70 million gain on the sale of 50% of Delta's stake in CLEAR Secure, which was disclosed in August.