US Aviation could bear hefty loss due to powerful Hurricane Irma

Posted on by Dip Sagar Regmi

The most powerful Hurricane was spotted down on Miami which caused enormous damage in US Aviation. The hurricane Irma has beat-up the Caribbean causing damage after destroying building near the islands. There is a rumor of more disaster this weekend when Irma will flow to South Florida, Fort Lauderdale and West Palm Beach as a category 4 hurricane.

The loss caused by Hurricane in US airlines after the cancellations of Flights can cross over $500 million. Florida may have lost 4% of passengers that would have flown to other states at the time of Hurricane. To cover the loss, 3.5 million passengers at the price of $300 for round trip tickets is still not enough. Over 10 million Americans travel to Caribbean by air each year. 10 million Americans travel to islands which were safe from Harvey big tourist areas like Dominica Republic, US Virgin Islands, Cuba and the Bahamas have been slammed. It’s not unthinkable that in worse situation the loss of hotels could cost 20% annualized over the next 12 months. The total economic loss of US Airlines is $2.5 billion even in this worst scenario. This data is based on relatively conservative assumptions.

Recently, one of the most famous St Maarten Airport located in holiday destination of St Maarten Island had been badly devastated by the heavy current of Irma Hurricane.

St Maarten Airport

Irma Hurricane with a wind speed of 300km/h had hit St Maarten in Caribbean Island destroying everything coming in front.

The region has badly been devastated by the rude wind causing a maximum destruction. Likewise, the international airport located on the Island has been torn apart by the maximum force of Irma Hurricane.

Hurricane can cause huge disaster over Miami however it is predicted to remain in category 3 until it goes to North of Orlando and Tampa. People are moving out in other cities for safety from Miami. After the prediction of Hurricane, Florida is better prepared than Houston because its buildings are constructed in Hurricane-aware manners.

However the hurricane caused a great loss for US airlines. The impact of Hurricane Irma is firstly the flight cancel and the aircraft maybe grounded for couple of weeks which may cause huge loss for the aviation industry. The loss from Irma to Miami may be lower compared to Houston because the affected cities have less central transaction point for intricate airlines operations. The problem gets bigger when the high winds and storms increases in Florida’s Coast which have already destroyed Caribbean. The aviation industry can be active as soon as hurricane becomes normal but the destruction caused by it may take time for reconstruction.

 

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