Juno to hit US economy for $230m in cancelled flight costs
US travel bosses are estimating the cost of cancelled flights around the Juno storm along the east coast this week at $230 million in passengers' lost activity.
During one 48-hour period, over 7500 flights were grounded or seriously delayed as the area was hit by a massive weather-front.
The US Travel Association says that each cancelled flight destined for a domestic airport costs the country’s economy over $31,000. Those figures do not take into account the impact on the airline industry, only the money lost from passenger spending.
The International Business Times reports that over-preparation for the blizzard may hit some states to the tune of hundreds of millions of dollars. This was due to the unprecedented closures in some cities on foot of the dire weather warnings as roads and transit systems were closed and people told to stay at home.
Despite the fact that the warnings were inaccurate, the results of the stay-at-home warning were substantial. NBC reports Evan Gold, senior vice president at weather advisory firm Planalytics, estimating the cost “at about $500 million”.
However, other estimates put the overall cost of Juno at $1 billion. This includes the factoring in of such things as loss of earning, business and accruing taxes on top of snow removal costs in New England, New York and New Jersey.
The Boston Globe estimates that a one-day storm in New York totals up to about $700 million, but a substantial amount of such cost includes lost wages for hourly workers etc.
CNN reports that passengers are hit harder economically than airlines when flights are cancelled, as happened this week.
NBC news claims that retailers will get an aftermath storm boost with increased sales for stores.