Delta Says Profit Will Take a Hit from Government Shutdown. Why the Stock Is Gaining.

Delta Air Lines stock was up around 8% in 2025 heading into Wednesday’s trading. (AFP via Getty Images)

Key Points

• Delta Air Lines anticipates a $200 million hit to its fourth-quarter pretax profit from the government shutdown.
• Delta’s stock rose as demand remains healthy and booking trends are strong for early 2026.
• Travel booking growth has returned to initial expectations after a temporary softening in November caused by the 43-day shutdown.

Delta Air Lines cautioned that the record-long government shutdown will dent its pretax profit by around $200 million in the fourth quarter. But the carrier also had positive news to share.

The Federal Aviation Administration ordered airlines to cut flights at around 40 U.S. airports in early November as a result of the 43-day shutdown, the longest in U.S. history, Delta said Wednesday that it expects a $200 million dent on pretax profits, or 25 cents per share.

Analysts are forecasting adjusted earnings of $1.64 a share when Delta reports in early January, while management has forecast a result of between $1.60 and $1.90.

The market has been bracing for negative news resulting from the government shutdown. However, there were some bright points. Demand in the final quarter of the year “remains healthy” and trends are strong for early 2026, Delta added. Growth in travel bookings has now returned to initial expectations after softening in November as a result of the 43-day shutdown.

Shares rose 3.2% on Wednesday, outpacing peers American Airlines Group and Southwest Airlines, which gained 1.9% and 0.6%, respectively. All things considered, Delta’s update isn’t bad at all.

Write to Callum Keown at callum.keown@dowjones.com