Airline misery continues as snow storms pound on

Airlines have cancelled over 500 flights for today as the freezing weather continues relentlessly. The latest storm has dumped snow on the Midwest and is expected to be similarly beneficent to the Northeast and mid-Atlantic states.

The latest cancellations add to 1,379 flights that were scrubbed for the President's Day holiday yesterday and over 4,440 that were delayed. More than 7,500 flights were scrapped on February 13.

Related stocks: AAL, JBLU, DAL, UAL, LUV, ALK, HA, SAVE, RJET

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Comments (6)
  • alexcampbello
    , contributor
    Comments (278) | Send Message
    What are the direct effects on coming quarter revenues and EsP?? Any rough calculations?
    18 Feb 2014, 05:41 AM Reply Like
  • convoluted
    , contributor
    Comments (2503) | Send Message
    Most airlines had entered the stratosphere, and were headed to the dark void of space. Sold calls on DAL last week-taking partial profits today.
    18 Feb 2014, 10:40 AM Reply Like
  • 7576Captain
    , contributor
    Comments (9) | Send Message
    You can blame new crew rest regulations and the DOT's stupid "tarmac delay" rules on many of these cancellations. FAA & DOT have made it extremely difficult to operate into any bad weather forecast. Your tax dollars at work!
    18 Feb 2014, 04:12 PM Reply Like
  • Jimbot3500
    , contributor
    Comments (64) | Send Message
    Good points, 7576Captain.


    That's why I'm (finally) working on my Private Certificate ;-)
    18 Feb 2014, 05:04 PM Reply Like
  • stockman52
    , contributor
    Comments (21) | Send Message
    I have been employeed by the airlines over 26 years.
    So ill let you in on a little secret.
    Airlines lots of times make more money when they cancel due to weather than if they flew a normal schedule.
    They put passengers on the next flights available and save flying around planes that would be 3/4 full.
    They don't pay hotel rooms due to its a weather delay .
    So now you understand why Chicago cancels all those flights when one drop of rain falls .
    18 Feb 2014, 07:50 PM Reply Like
  • Dothemathman
    , contributor
    Comments (1500) | Send Message
    The major airlines have indeed been priced more highly than historically, but I believe this is appropriate because of the structural change in the industry which has reduced the historic profit volatility.
    In addition, the sell off yesterday appears to have been a belated response to the weather related cancellations. Perhaps this market reaction was in response to this kind of Seeking Alpha note. However, short term profit reduction due to a couple of bad months of weather should be viewed as a one-off event. The secular outlook for the industry has not changed (unless one thinks this weather will be a new normal, recurring pattern). I expect a strong relief rally once the weather normalizes (soon).
    Long AAL, CPA and JBLU
    19 Feb 2014, 04:21 AM Reply Like
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