Hurricane Milton is set to make landfall in Florida on Wednesday, following closely on the heels of Hurricane Helene, from which the region is still recovering. Raymond James Managing Director Savi Syth joins Catalysts to discuss the potential impact of this major climate event on the airline industry.
Syth identifies two key impacts on airlines. First, there's the immediate effect of the hurricane moving through Florida, which she describes as "short-lived" with airlines temporarily shutting down operations. The second, more enduring impact involves the potential damage to beachfronts and popular tourist destinations, which could affect travel to the region in the longer term.
Despite the challenges, Syth points out "one silver lining" from "a travel demand perspective": Hurricane Helene struck during the off-season for leisure travel. However, Milton poses a greater risk as it coincides with the fall break period, a typically busier time for tourism.
"I think demand will hold up, but airlines that are exposed to that region might experience a slightly longer impact," Syth tells Yahoo Finance.
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This post was written by Angel Smith