Hurricane Milton has wreaked havoc on the state of Florida and closed multiple airports in the region, leading to thousands of flight cancellations due to the hurricane.
Flight Cancellations: The airline sector is one of many that could experience a short-term and long-term negative impact from the destruction of Hurricane Milton, which made landfall in Florida Wednesday night.
Over 3,000 flights have been canceled and delayed as of Thursday morning, according to NBC News. Reporter Tom Costello said the number could grow as the airports closed in Florida are having a ripple effect on other airports across the nation.
NBC showed the following airports in Florida closed:
- St. Petersburg/Clearwater (PIE)
- Tampa (TPA)
- Orlando (MCO)
- Southwest Florida (in Fort Myers) (RSW)
- Sarasota Bradenton (SRQ)
- Palm Beach (PBI)
Costello noted that while other Florida airports such as Miami are open, the hurricane is causing cancellations and delays at that airport. The Flightaware Misery Map showed Miami as the airport with the most cancellations and delays Thursday among open airports.
The airport closures come ahead of Monday's Columbus Day holiday and during the High Holy Days, which make for a busy travel week.
Costello said he expects the airports to be open by the weekend and back to normal operations.
"The big variable is going to be how much damage these individual airports have suffered," Costello said.
The Tampa International Airport said Thursday it was conducting an "assessment of conditions" at the airport and airfield to determine when it could "safely reopen."
Companies Most Impacted: Airline companies throughout the U.S. are likely to be negatively impacted from Hurricane Milton with cancellations and delays leading to refunds and vouchers.
The Orlando airport is the busiest impacted and could have the largest affect on airlines. The airport served 57.7 million passengers in 2023, ranking first in Florida and seventh in the U.S., as reported by Simple Flying.
According to the report, these are the largest airlines for the airport based on market share:
- Southwest Airlines Company LUV: 25%
- Spirit Airlines Inc SAVE: 14%
- Delta Air Lines Inc DAL: 12%
- JetBlue Airways Corporation JBLU: 11%
- Frontier Group Holdings ULCC: 10%
- American Airlines Group AAL: 9%
- United Airlines Holdings UAL: 7%
These seven airlines could see the biggest impact from the Orlando airport closing. The airports in Tampa and Southwest Florida (Fort Myers) also rank among the busiest airports in Florida.
Other large operators at Florida airports include Allegiant Travel Company ALGT and Sun Country Airlines Holdings SNCY, although these airlines could be less impacted by the hurricane and the flight cancellations.
Investors should also monitor the U.S. Global Jets ETF JETS, which tracks the overall airline sector and could be highly volatile if the airports face extended closures and cancellations.
The impact on Spirit Airlines could be particularly noteworthy as the company is reportedly exploring bankruptcy.
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Photo: Tampa International Airport, photo by Feng Cheng via Shutterstock
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