Hurricane season takes toll on airline industry
Airlines are feeling the impact of a brutal hurricane season.
Delta Air Lines said Wednesday that net income fell 6% to nearly $ 1.2 billion during its July- to- September quarter, with $ 120 million of the decline blamed on Hurricane Irma last month. JetBlue Airways, meanwhile, projected that operating income could be affected by as much as $ 105 million through the end of the year.
The quarter brought several disasters, but Irma in particular disrupted Delta flights in the Caribbean, Florida and Georgia. Delta’s main hub is in Atlanta.
“While we faced a number of challenges this quarter, including multiple hurricanes and an earthquake in Mexico, I am proud of how Delta ... still delivered an outstanding performance,” CEO Ed Bastian said in a statement.
JetBlue projected Wednesday that Irma and Hurricane Maria would lower revenue by $ 44 million in the third quarter and by as much as $ 90 million in the fourth quarter. Those hits would reduce its operating income by as much as $ 35 million in the third quarter and as much as $ 70 million in the fourth quarter.
“Our thoughts are with all of those impacted by hurricanes in recent months,” CEO Robin Hayes said in a statement.
The JetBlue projections were part of a passenger traffic report for September, based on booking trends. The disruptions for Delta were reported in its quarterly earnings announcement.
The storms caused widespread flight disruptions, so the effects are likely to grow when American, Southwest and United, which have hubs in Texas and Florida, report their earnings.
Delta’s total operating revenue of $ 11.1 billion for the third quarter was up 5.5% or $ 577 million, compared with a year earlier. The figure included a $ 140 million loss in revenue from Irma, the airline said.
United Airlines reported its revenue passenger miles decreased 1.6% in September but without describing how much the storms hurt the bottom line.