Winter storm to impact US airlines' pretax profit by $380 million, says BofA

Reuters01-30
Winter storm to impact US airlines' pretax profit by $380 million, says BofA

Jan 29 (Reuters) - U.S. airlines' pretax profit will be impacted by about $380 million from the winter storm that forced many carriers to cancel and delay thousands of flights, BofA Global Research said on Thursday.

The brokerage in a note said the storm resulted in the cancellation of over 22,000 flights since January 24 across mainline and regional networks.

BofA said it tracked more than 11,000 cancellations at American Airlines AAL.O. The brokerage added that Delta Air Lines DAL.N and United Airlines UAL.O should have the next largest pretax income impacts given the size of their networks.

The brokerage applied the per-flight pretax profit impact at American Airlines, estimated at $16,800, to the cancelled flights at other carriers.

Following are BofA's estimates on U.S. airlines' financial impact from the storm.

Airline

Estimated Cancellations

Estimated Pretax Profit Impact (million)

Estimated Q1 FY26 EPS Impact

American AAL.O

11,310

$190

$0.22

Delta DAL.N

3,968

$66.7

$0.06

United UAL.O

3,151

$52.9

$0.11

Southwest LUV.N

2,293

$38.5

$0.05

Alaska ALK.N

259

$4.4

$0.02

JetBlue JBLU.O

1,171

$19.7

$0.04

Frontier ULCC.O

279

$4.7

$0.02

Allegiant ALGT.O

186

$3.1

$0.13

(Reporting by Parth Chandna; Editing by Maju Samuel)

((Parth.Chandna@thomsonreuters.com;))

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