Delta says airport power outage caused around $40 million loss

ATLANTA — Delta Air Lines said it lost around $40 million during the power outage that paralyzed Hartsfield-Jackson Atlanta International Airport in mid-December.

The winter storm that brought nearly a foot of snow to parts of Georgia in early December cost the company another $20 million.

Despite those losses, Delta reported a hefty profit of $1 billion for the December quarter.

For the full year, the Atlanta-based airline’s adjusted pre-tax income was $5.5 billion, a $621 million decrease relative to 2016.

“This is a complicated story," Georgia State University Law School’s Robert Weber told Channel 2's Aaron Diamant about Delta's next moves after CEO Ed Bastian confirmed that the company took the $40 million hit.

“So, there’s a dense kind of web of causal factors here at play,” Weber said.

A Georgia Power owned switcher that manages the airport’s main and backup power sources failed and sparked a massive underground fire.

The 10-hour power outage forced Delta to cancel 1,400 flights and left tens of thousands of passengers stranded in Atlanta and around the world.

“They, not without good reason are looking to be made whole,” Weber said.

That week, Bastian told the Atlanta-Journal Constitution:

"We will certainly be seeking the opportunity to have a conversation, and then seek reimbursement. I don't know whose responsibility it is between the airport and Georgia Power, but we're going to have conversations with both of them."

Sources confirm Delta, Georgia Power and airport lawyers are already talking, but Weber believes there’s a limit to how much hardball any side might play.

“Neither party really wants to walk away from this relationship. Neither party really can. They’re certainly not going to walk away from a $40 million, over a $40 million matter,” Weber said.

In a statement released on Thursday, Georgia Power again apologized for the inconvenience and noted it can't guarantee uninterrupted service and also added the following:

"At this time, we are focused on completing a safe and thorough investigation. Once that is completed, we will work closely with Hartsfield-Jackson, Delta and other stakeholders to determine whether we can make the system even more reliable."

Cox Media Group