Winter storm throws wildcard at airliners

A winter storm spread across the Northeast is creating a ripple effect of airline flight cancellations. reports 1,369 cancellations today after over 2,200 were scrapped yesterday.

The carriers most impacted by the weather are American Airlines Group (AAL), United Continental (UAL), and Republic Airways (RJET).

Typically, airlines lose less than 25% of the revenue from canceled flights with factors such as the percentage of business travelers and the length of the suspension of service coming into play. In some cases, if the weather matrix is handled adroitly - a carrier can be close to break-even off the development.

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Comments (2)
  • markcc
    , contributor
    Comments (3314) | Send Message
    Yawn! Winter flight cancellations and delays? Any investor should have this baked into the valuation of the airlines they invest in. Snow happens! Snow goes away!
    By the way, there are 35,000 commercial flights a day in the US so 2,000 is only about 6% of flights for two days. Annually there are almost 13,000,000 flights, so this represents an industry impact of .02% of flights. This becomes almost invisible to the bottom line.
    10 Dec 2013, 10:28 AM Reply Like
    , contributor
    Comments (5) | Send Message
    this is an unbelievable situation !! the stock holders who owned AAMRQ, the conversion was more or less .08665 , and meanwhile the CEO is sitting on his butt , and soon to collect more than $15 million dollars !!


    i hope to g-d there is a class action against AAL for lost monies!!!
    11 Dec 2013, 10:26 AM Reply Like
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