Delta turns profit in Q3, but hurt by CrowdStrike glitch

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and Delta first earnings report since the CrowdStrike meltdown.

Transcript

00:00I'm Remy Blair reporting from the New York Stock Exchange.

00:03Here's what we're watching today on the street.

00:05Stocks are looking to pick up where they left off on Wednesday

00:08after the Dow and S&P 500 closed at record highs.

00:11Wall Street is digesting the latest Consumer Price Index report,

00:15which saw inflation cool once again in September, hitting a three-year low.

00:19Inflation now sits at 2.4 percent,

00:22a touch higher than economists' predictions of 2.3 percent.

00:25The Federal Reserve's target inflation number is 2 percent.

00:29The report paves the way for the Fed to again lower interest rates in November.

00:34And in other headlines, we now finally know the real cost of Delta's July service meltdown.

00:39The good news is the airline beat Wall Street's revenue estimates

00:43and reported a profitable quarter.

00:45However, Delta's $971 million in adjusted income was 26 percent lower from this time a year ago.

00:52The company also missed its target on earnings per share.

00:56In July, a worldwide software glitch stemming from cybersecurity firm CrowdStrike

01:01forced all major carriers to cancel flights.

01:04Delta canceled more than 7,000 flights over a one-week period

01:07and claims the outage blew a half-a-billion-dollar hole in its budget.

01:12While most airlines were up and running after a couple of days,

01:16Delta struggled to get back on track following the outage.

01:19CrowdStrike says the airline's antiquated systems were to blame,

01:23while Delta places the blame squarely on the cybersecurity company.

01:27Delta continues to seek compensation from CrowdStrike,

01:30with CEO Ed Bastian telling CNBC,

01:33"...the havoc that was created deserves, in my opinion, to be fully compensated for.

01:38This matter is now in the hands of our attorneys.

01:40We hope that we'll see a resolution, but we keep all of our options open."

01:45And that'll do it for your daily briefing.

01:48From the New York Stock Exchange, I'm Remy Blair with The Street.

Category

Transcript

Recommended