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Delta says computer breakdown cut revenue by $100m

Delta said the computer failure that caused 2,300 flight cancellations last month cut sales about $100m and reduced a key revenue figure. Passenger revenue for each seat flown a mile, an industry benchmark, fell 9.5% in August, in part because of the outage and subsequent recovery efforts, the carrier said Friday. The breakdown reduced unit revenue, as the measure is also known, by two percentage points, Delta said. The country’s second-largest airline earlier forecast that Q3 unit revenue would fall 4% to 6%. A power-control module at Delta’s Atlanta computer center failed and caught fire Aug. 8, shutting down electricity to the system. About 300 of the airline’s 7,000 servers weren’t wired to backup power, the company had said.<br/>

Air France-KLM said to seek new approach to transform airline

Air France-KLM Group will overhaul its restructuring efforts, moving away from the previous CE’s strategy that strained relations with pilots, to a more conciliatory approach called “Trust Together,” said a person familiar with the plans. Jean-Marc Janaillac, who became CEO in July, will unveil the program in November that seeks to lower costs as well as rebuild trust between management and labor, and between the group’s sister airlines, said the person, who asked for anonymity because the program isn’t public. The airline has been torn by a series of costly strikes by pilots and flight attendants, and by mistrust between KLM and its French counterpart. The new plan was first reported Sept. 2 in newspaper La Tribune. Janaillac will drop the Perform plan initiated by his predecessor Alexandre de Juniac, while still seeking to make the carrier competitive with rivals. said the person. De Juniac had failed to win pilot support for measures that would increase productivity.<br/>