Hurricane Milton has wreaked havoc on the state of Florida, causing major disruptions to air travel. Multiple airports in the region have been forced to close, resulting in thousands of flight cancellations.
The airline sector is one of many that could face significant short-term and long-term consequences from the destruction caused by the hurricane, which made landfall on Wednesday night. As of Thursday morning, over 3,000 flights have been canceled or delayed, according to NBC News. Reporter Tom Costello noted that the impact could worsen as the closures of Florida airports are causing a ripple effect across the nation.
The following airports in Florida are currently closed:
* St. Petersburg/Clearwater (PIE)
* Tampa (TPA)
* Orlando (MCO)
* Southwest Florida (in Fort Myers) (RSW)
* Sarasota Bradenton (SRQ)
* Palm Beach (PBI)
While other Florida airports, like Miami, remain open, the hurricane is still causing cancellations and delays. The Flightaware Misery Map shows Miami as the airport with the most cancellations and delays among open airports.
These airport closures come at an especially inconvenient time, just ahead of the Columbus Day holiday on Monday and during the High Holy Days, which are typically busy travel periods. Costello anticipates that the airports will reopen by the weekend and resume normal operations. However, he also acknowledged that the extent of the damage to each airport will be a significant factor in determining the reopening timeline.
Tampa International Airport is currently conducting an assessment of its condition and airfield to determine when it can safely reopen.
Companies Most Impacted:
Airline companies throughout the U.S. are likely to experience negative impacts from Hurricane Milton due to cancellations and delays, leading to refunds and vouchers. The Orlando airport, which served 57.7 million passengers in 2023, ranking first in Florida and seventh in the U.S., is the busiest airport affected by the storm. This closure is likely to have a significant impact on airlines.
Here are the largest airlines operating at Orlando International Airport based on market share:
* Southwest Airlines Company (LUV): 25%
* Spirit Airlines Inc (SAVE): 14%
* Delta Air Lines Inc (DAL): 12%
* JetBlue Airways Corporation (JBLU): 11%
* Frontier Group Holdings (ULCC): 10%
* American Airlines Group (AAL): 9%
* United Airlines Holdings (UAL): 7%
These seven airlines could face the most significant challenges due to the closure of Orlando International Airport.
The airports in Tampa and Southwest Florida (Fort Myers) also rank among the busiest in Florida. Other major operators at Florida airports include Allegiant Travel Company (ALGT) and Sun Country Airlines Holdings (SNCY). While these airlines might experience fewer disruptions, investors should also monitor the U.S. Global Jets ETF (JETS), which tracks the overall airline sector and could see increased volatility if the airports remain closed for an extended period.
The impact on Spirit Airlines could be particularly notable as the company is currently exploring bankruptcy.
With the hurricane continuing to disrupt air travel, travelers are advised to check with their airlines for updates on flight status and potential delays or cancellations. The full impact of Hurricane Milton on the airline industry and other sectors is still unfolding, and updates will be provided as information becomes available.
