US: Even after a brutal hurricane season, airlines are doing just fine

Only days after monster storm Irma made landfall in Florida, cancelling and delaying thousands of flights, the head of the world’s largest airline appeared unfazed, voicing glowing optimism about the future of air carriers. Doug Parker, CE of American Airlines, said the impact of Irma and the earlier hurricane that tore through Houston will be short lived. “I don’t anticipate a financial impact to us other than the near-term financial impact,” he said. “I feel as good about this business as I ever have. How could that be in a time when monster storms are more common — and some fear that travel disruptions could become a regular occurrence amid quickening climate change? Chalk it up to science, technology and profits. The nation’s $1.5t airline industry is in the midst of one of its most financially stable eras in decades, which will help the biggest carriers absorb the short-term impacts of the unusually destructive hurricane season. Increasing passenger demand and cheap fuel costs have been key in helping build the carrier’s profit margins and cash reserves. But advances in science and technology are also playing a role. Modern weather forecasting has improved to the point that airlines can now tell with high reliability the moment a storm is expected to reach a major airline hub, making it easier to cancel and reschedule flights. Although it is too early to estimate the final dollar cost of the two hurricanes, the nation’s bigger airlines seem prepared to overcome the financial blow despite the storms’ enormous impact. Story has more details about impact on various airlines.<br/>