United expected to suffer US$265m blow from Hurricane Harvey

United Continental is likely to take at least a $265m financial hit from Hurricane Harvey because of the carrier’s reliance on Houston as one of its biggest hubs, an airline analyst said. Flights at the third-largest US carrier will decline an estimated 1.5% in the current quarter because of the storm, with little opportunity to recoup lost sales, Helane Becker of Cowen & Co. said in a report Tuesday. Houston’s George Bush Intercontinental Airport accounts for about 17% of United’s capacity. The projected losses would more than double the $125m blow Delta suffered when it cancelled about 4,000 flights after April storms in Atlanta. Harvey probably also will prove more troubling than Hurricane Ike in 2008, which cost Continental Airlines $50m two years before it merged with United, Becker said. Harvey “seems more powerful and impactful,” she wrote. Sandy, the storm that hit New York in 2012, “is probably the best comp, given the impact lingered beyond just the initial airport closings. After the airports opened, there was rebuilding to be done, and people just didn’t travel for a while.” United hasn’t issued guidance to investors about the storm’s impact yet. “Our focus right now is on resuming operations out of Houston and helping our customers and employees,” said a United spokeswoman.<br/>