Hurricane Irma has already hammered some of the Caribbean and is currently on a collision course for Florida, with landfall expected this weekend. Many people have already fled the area, and airline stocks are moving lower as investors begin to worry that they won’t be able to recoup the losses caused by Harvey and Irma.
Hurricane Irma has already killed at least 10 people in the Caribbean and caused massive power outages in Puerto Rico. The Category 5 hurricane continues to make its way through the tropical island area towards the continental U.S.
The National Hurricane Center recently updated its assessment of Irma and outlined details of the tropical storm’s likely path, stating that in all likelihood the storm will hit Florida soon.
“The threat of direct hurricane impacts in Florida over the weekend and early next week continues to increase. Hurricane watches will likely be issued for portions of the Florida Keys and the Florida peninsula later this morning,” said the NHC.
Florida Governor Rick Scott continues to use Twitter (TWTR)—in both English and Spanish—in order to update residents on evacuation protocols, as thousands have already fled the area and more prepare to.
As Irma crushes the Caribbean, the Houston area and southwestern Louisiana begin their Hurricane Harvey recovery process. Thousands of flights were canceled due to Harvey, and now it seems that trend will likely continue as Irma makes its way towards Florida.
On Wednesday, United (UAL - Free Report) projected that its unit revenues will decline more than previously expected in the third quarter, citing bothHurricane Harvey and a price war with low-cost airliners as major reasons (also read: Here's Why United Stock Fell Today).
Harvey-related inflated fuel prices, thousands of canceled flights, and goodwill-related price caps on flights out of Florida have caused shares of major U.S. airlines, including the biggest carriers, to fall on Thursday.
Shares of United sank by 1.86%, while American Airlines (AAL - Free Report) dropped by 1.02%. Delta (DAL - Free Report) saw its stock price fall by 0.50%. These major airlines sent shares of the US Global Jets ETF (JETS - Free Report) down marginally.
Hawaiian Holdings (HA - Free Report) shares fell by over 1.14%, and JetBlue (JBLU - Free Report) , which capped flights out of Florida at $99.00, saw its stock price tank by nearly 3%.
However, shares of smaller airlines and discount carriers such as Southwest (LUV - Free Report) , Spirit (SAVE - Free Report) , and Alaskan (ALK - Free Report) have already fought their way back from morning dips to see marginal gains on Thursday.
Also, shares of major cruise line stocks, Carnival (CCL - Free Report) , Norwegian Cruise Line (NCLH - Free Report) , and Royal Caribbean (RCL - Free Report) all fell marginally.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today. Learn more >>