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Katrina costly to airlines and tourism, too
Hurricane Katrina’s impact on the travel business was still being assessed but it obviously forced many flight cancellations, led to the destruction of several casinos and may have implications for future tourism in the Gulf Coast.
Scores of flights were cancelled.
Continental had the most with more than 100 in one day, said the Associated Press.
Tens of thousands of air travelers nationwide faced delays and cancellations in the wake of the storm that possibly did its most damage in New Orleans.
Flights were suspended at eight airports, including New Orleans.
Even airports not directly involved in the storm faced delays because of closed connecting flights.
“With so many large hubs and other airports affected by the storm, flights could be delayed or cancelled even in parts of the country far out of Katrina’s reach,” said USATODAY.com.
In Biloxi, Mayor A. J. Holloway said the Category 4 storm put five casinos out of commission. The Hard Rock Casino due to open next week was half destroyed.
Some observers said the storm could also impact tourism along the Gulf Coast by discouraging future visitors. But others noted that Florida survived the unprecedented 2004 hurricane season to have a thriving tourist year in 2005.
“We’ll see some disruptions in August and September. But that should be compensated in the fourth quarter,” said Richard Yamarone, an economist for Argus Research in New York.
Dozens died in the storm with billions of dollars of damage.
But another casualty was the airlines, which not only lost traffic but are facing even higher gas prices.
Windswept drilling platforms in the Gulf of Mexico sustained enough damage to cut more than 90% of the area’s crude oil production, according to TheMotleyFool.com.
“Even JetBlue, which flies to only one city in the disaster area, has been affected by the skyrocketing price of fuel,” reported the site.
“It’s not anything that anybody needs, frankly. The airlines don’t need it. Consumers don’t need it,” airline consultant Robert Mann told the Associated Press, referring to the combination of an oil price spike and the deadly hurricane.
“Jet-fuel prices are crushing, and could prove to be a knock-out blow for some,” John Heimlich of the Air Transport Association wrote in a recent report on fuel prices.
Report by David Wilkening
David
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