The weekend Nor'easter cost airlines millions of dollars, less than what Covid-19 cost them. Here's what the storm cost them:
that brought blizzard conditions, dumped many tons of snow and put nearly 55 million people under winter weather watches.
All told, the airline industry is likely looking at a loss of about $35 million for this two-day weather event, estimates Scott Keyes, a travel expert and the founder of Keyes came up with that ballpark estimate assuming that canceled flights cost airlines about $7,000 per segment. That figure is based on a 2014 analysis and adjusted upward for inflation.
For context, consider how the Covid-19 pandemic has pummeled airlines on a daily basis. The three largest U.S. airlines — American Airlines, Delta Air Lines, United Airlines — reported a collective net loss of $1.926 billion in Q4 2021, or an average loss of $21 million per day over the last 90 days of last year. Comparatively, the industry’s losses from the storm likely averaged just $17.5 million a day over the weekend.
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