Delta Air Lines (DAL) warned of a $200 million, or $0.25 per share, hit to its fourth‑quarter pre-tax profit due to the record-long U.S. government shutdown. Despite this update, DAL stock was up about 3% on Wednesday, as investors may have anticipated an even larger profit impact.
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The shutdown led to thousands of flight cancellations after the Federal Aviation Administration (FAA) cut capacity at 40 major airports due to air traffic controller shortages.
Currently, analysts expect Delta to report Q4 earnings of $1.64 per share in early January, while management forecasts $1.60–$1.90.
Here’s How Travel Companies Were Impacted
During the 43‑day government shutdown, travel companies faced major disruptions. Staffing shortages left air traffic controllers and TSA officers working without pay, leading to widespread delays and cancellations.
Further, airlines, including Delta, were required to issue full refunds to affected passengers, weighing on their bottom lines.
Delta Sees Strong Booking Trends in Early 2026
Despite the profit hit, Delta noted that travel demand remains “healthy” heading into December and early 2026. Bookings have rebounded to pre-shutdown expectations, and the airline reaffirmed confidence in its long-term growth prospects.
Is DAL a Buy or Sell?
Currently, Wall Street has a Strong Buy consensus rating on Delta Air Lines stock based on 14 Buy recommendations. The average DAL stock price target of $73.93 indicates a 10.48% upside potential.
