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After Katrina: Physical Devastation Comes with More Woes for Airline Industry
Now that the winds have passed through the Florida and U.S. Gulf Coast cities and towns affected by Hurricane Katrina, airline industry watchers are counting up the multitude of ways in which the storm is adding more layers of woes for U.S. carriers.
Most directly, airlines lost days of operations to the affected regions, which included the popular South Florida vacation market and the central U.S. Gulf Coast. Particularly affected is Delta -- the biggest major carrier in the southeast, and the hurricane may have pushed that airline closer to bankruptcy. But also hit are any airline that serves Florida, with airlines like American, AirTran, JetBlue, and Southwest particularly affected.
With the city still under water and deaths perhaps into the thousands, New Orleans still has not had commercial air service resumed. When it does, it remains to be seen how quickly the French Quarter tourism market will bounce back since the city's tourism infrastructure was devastated. Also badly hit was the tourism infrastructure of Gulfport-Biloxi, Mississippi. The area is home to several casino resorts, most of which have suffered damage. Airlines are continuing to cancel flights to both destinations.
But perhaps more importantly for airlines as a whole, Katrina hit the Gulf of Mexico's oil industry, which contributes about a quarter of the United States' oil supply. Oil prices, already high, are now even higher and the Air Transport Association (ATA) says that jet fuel production has been cut 13 percent because of the storm.
By the end of the count, Katrina will have cost airlines -- particularly American airlines -- millions.
Now that the winds have passed through the Florida and U.S. Gulf Coast cities and towns affected by Hurricane Katrina, airline industry watchers are counting up the multitude of ways in which the storm is adding more layers of woes for U.S. carriers.
Most directly, airlines lost days of operations to the affected regions, which included the popular South Florida vacation market and the central U.S. Gulf Coast. Particularly affected is Delta -- the biggest major carrier in the southeast, and the hurricane may have pushed that airline closer to bankruptcy. But also hit are any airline that serves Florida, with airlines like American, AirTran, JetBlue, and Southwest particularly affected.
With the city still under water and deaths perhaps into the thousands, New Orleans still has not had commercial air service resumed. When it does, it remains to be seen how quickly the French Quarter tourism market will bounce back since the city's tourism infrastructure was devastated. Also badly hit was the tourism infrastructure of Gulfport-Biloxi, Mississippi. The area is home to several casino resorts, most of which have suffered damage. Airlines are continuing to cancel flights to both destinations.
But perhaps more importantly for airlines as a whole, Katrina hit the Gulf of Mexico's oil industry, which contributes about a quarter of the United States' oil supply. Oil prices, already high, are now even higher and the Air Transport Association (ATA) says that jet fuel production has been cut 13 percent because of the storm.
By the end of the count, Katrina will have cost airlines -- particularly American airlines -- millions.