Delta Air Lines (Delta) stock fell 3.4% after the American carrier announced that Hurricane Florence caused a US$30 million loss in business and that it was now paying more for fuel. Delta was forced to cancel 275 flights in September, mainly in the Carolinas, and that to date it had still not completed dealing with the disruption.
As a consequence, third-quarter revenue per seat flown per mile increased between 4 and 4.5 percent, which was an indication of rising prices, with Delta indicating that the additional revenue generated will partially help to offset the 35 percent increase in spot fuel prices over the last year. The carrier’s share value dropped US$1.91 to US$54.69 at market close, with other major American carriers’ stock prices falling by a similar amount.
In total, roughly 3,500 flights were canceled as a result of Hurricane Florence back in mid-September. Unlike the previous year when many more flights were disrupted as a result of Hurricanes Harvey, Irma and Maria – over 20,000 in total – Delta Air Lines, JetBlue Airways and United Airlines reduced prices after many carriers were previously criticized for increasing prices to take advantage of the surge in demand for seats prior to hurricanes hitting land. This year carriers also waived fees for changing flights, baggage and in-flight pets, while Delta also added 1,000 additional seats to its flights in the Carolinas ahead of the hurricane.
While Charleston International Airport was closed prior to the arrival of Hurricane Florence, it was not just carriers that were affected where planes were concerned. Boeing was also forced to take evasive action by closing its Charleston plant and evacuating all staff, while flying a number of jets to relative safety in Seattle.
