United Blames Hurricane Harvey for Major Revenue Decline
Photo Credit: A United Airlines Boeing 787 takes off in Houston. United has been losing revenue in Houston because of Hurricane Harvey. AP Photo/Houston Chronicle / James Nielsen
Skift Take
There's a reason they call it an act of God. Every airline in the world is going to lose money when a massive hurricane hits one of its largest hubs. United will be fine. It'll just take some time.
Hurricane Harvey caused "the largest operational impact we've had in the company's history," and will significantly hurt its earnings this quarter, United Airlines Chief Financial Officer Andrew Levy said Wednesday at an investor conference.
United, which usually operates 410 daily flights a day from Houston, canceled thousands of flights over roughly two weeks because of the hurricane, including its entire schedule on four days when George Bush Intercontinental Airport closed. On Wednesday, United planned to operate 350 flights, and Levy said it should fly its entire schedule by Friday.
"We had to walk away from a large amount of revenue during what is an important part of the year for us," Levy said at the Cowen and Company 10th Annual Global Transportation Conference.
In all, Levy said United forecasts it will make about $400 million less than expected in the third quarter. While much of that loss is attributable to Harvey, it's not the only reason for the new financial gu
