Delta is expected to take a sizable financial hit this quarter from the system breakdown that led to thousands of canceled flights and prompted a federal investigation of the carrier’s response. Citigroup cut estimates for Delta’s third-quarter adjusted earnings by 60 cents a share in a new report to $1.37, citing “operational expenses and potential customer compensation costs” from the upheaval of the past few days. Analyst Stephen Trent also cut two profit metrics by about $500m each. Conor Cunningham of Melius Research estimated a $350m impact to operating profit plus a likely fine from the Department of Transportation, which is investigating Delta’s treatment of passengers. The issues have also tarnished Delta’s reputation for offering largely reliable, drama-free service. “What is more uncertain is the reputational damage Delta’s image may take given the operational issue,” Cunningham said in a note. “It is certainly plausible forward bookings are impacted.” The financial fallout offers a fresh blow to Delta as flight disruptions begin to ease. CEO Ed Bastian said in a statement Wednesday that cancellations were expected to be “minimal” during the day with operations restored to normal by Thursday. The carrier canceled 511 flights Tuesday, according to tracking service FlightAware.com, bringing its total since Friday’s breakdown to 5,469.<br/>
sky
Dutch carrier KLM is teaming with ZeroAvia to work towards carrying out a demonstration flight of the propulsion specialist’s ZA2000 zero-emission, hydrogen-electric engine for large regional turboprops. As a first target, the companies aim to carry out an A-to-B flight demonstration using the ZA2000 between two airports in 2026. “As well as identifying the optimal airport pair, immediate workstreams will be working towards regulatory permits to fly and ensuring supply of liquid hydrogen fuel and putting in place the supporting infrastructure for aircraft fueling,” the partners say. KLM Cityhopper managing director Maarten Koopmans says: “KLM aims to be a front-runner in the journey towards a more sustainable future in aviation. That’s why we actively support and encourage innovation to drive industry change. When it comes to the future of zero-emission flights, KLM supports various technologies and innovations simultaneously. “Together with our sector partners, we are conducting research on electric, hydrogen, and hybrid-powered flights and exploring ways to expedite these advancements.” ZeroAvia has been working on a prototype of its smaller ZA600 powertrain aboard a Dornier 228 aircraft at its UK base. The next product, the ZA2000, is designed to support up to 80-seat regional turboprop aircraft and is slated for service entry in 2027. Earlier during the Farnborough air show ASL Aviation signed a conditional purchase agreement for up to 20 ZA2000 engines for retrofit into its ATR fleet.<br/>