Delta says H1N1 to cause a $250M hit

0 Comments | Deseret News (Salt Lake City), Jun 23, 2009

NEW YORK (AP) -- Delta Air Lines Inc. on Monday said travel demand slowed by the novel H1N1 influenza will result in a $250 million hit to the carrier's revenue this year.

Chief Executive Officer Richard Anderson told shareholders at the airline's annual meeting in New York that because of the virus, originally known as the swine flu, Delta has significantly reduced capacity into Mexico and Latin America.

The carrier also cut capacity in Asia, where customers still remember the SARS outbreak in 2003.

Anderson added that Delta will replace some of the capacity to those areas later this year.

Earlier this month, the Atlanta-based carrier said in an SEC filing that a drop in travel demand would amount to an impact of $125 million to $150 million in the second quarter.