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Saturday, December 1, 2012

US Airways predicts $30 million revenue impact from Hurricane Sandy

US Airways Group estimates Hurricane Sandy-related cancellations to and from the US Northeast will result in a $30 million negative impact to its revenue and a $15 million negative impact on its earnings for the month of October. November earnings are expected to take a hit of approximately $20 million.
In the days leading up to and immediately following Hurricane Sandy, the company saw its total bookings decline 13% year-over-year for the Oct. 24 to Nov. 3 period. Bookings made zero to 13 days before departure declined 21% for the 11-day period, which the group estimates will negatively impact November PRASM by 2%.
Between Oct. 25 and Nov. 1, US Airways cancelled nearly 4,200 flights. Beginning Oct. 29, it canceled all flights at Philadelphia, Washington DC, New York City, Boston,and other cities in the Northeast due to the storm, which caused over 20,000 flight cancelationsfor North America (ATW Daily News, Nov. 2).
The carrier said its bookings have since returned to normal levels.

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