Delta Air Lines Inc. expects to take a $200 million profit hit in the final quarter of 2025, after the carrier was forced to slash flights during the recent record-long government shutdown. 

Demand remains healthy in the quarter ending December 31, as well as into early 2026, the carrier said in a stock exchange filing ahead of an investor conference on December 3. Growth in bookings has returned to initial expectations after falling during the shutdown, the airline said. 

President Donald Trump’ administration imposed temporary flight cuts across 40 major airports during the longest government shutdown in U.S. history, citing a shortage of air traffic controllers and security officers. That forced airlines to slash schedules and rebook affected passengers on alternative flights, creating some chaos in the system.

Delta shares were little changed in pre-market trading on December 3. The stock has gained 7.7% this year, compared with a 16% increase in the benchmark S&P 500 Index. 

The airline had more than 2,000 cancellations, chief executive officer Ed Bastian said in November. Bastian also said then that bookings for the holidays had slowed down, as passengers grew wary about getting stranded during Thanksgiving and Christmas.

The reduction in profitability in the fourth quarter will amount to approximately 25 cents of earnings per share, Delta said on December 3. The airline had previously said it expected its final quarter earnings to be at or slightly better than the third quarter. 

Delta has bet on the premium end of the market as it looks to differentiate itself from budget carriers, and cater to customers seeking a more luxurious travel experience. That’s helped the airline turn around its financial performance following an abrupt slowdown earlier in the year, when economic uncertainty prompted more travelers to put trips on hold.