General Question

elbanditoroso's avatar

Do airlines that fly to Florida have hurricane insurance for the revenue they are losing?

Asked by elbanditoroso (33593points) 2 months ago

Delta, Southwest, American, Jet Blue – all have lots of flights to south and central Florida. And a whole lot of those flights are cancelled for the next day or two.

Are the airlines insured for lost revenue? Since they won’t be flying, they won’t be earning. (Of course, they won’t be paying for fuel and pilots and flight attendants, either).

Do airlines lose money or make money when weather stops them from flying?

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4 Answers

Hawaii_Jake's avatar

I’ve never heard of insurance covering lost revenue. I think that’s one of the hazards of doing business.

Hawaii_Jake (37761points)“Great Answer” (0points) Flag as…
janbb's avatar

^^ There actually is coverage called Business Interruptions insurance but I don’t know if airlines have it.

janbb (63268points)“Great Answer” (1points) Flag as…
zenvelo's avatar

Business Interruption insurance covers only net loss. But airlines save a ton of money when they cancel a flight- fuel, maintenance costs, landing fees, and employee costs.

Airlines don’t pay employees who don’t work a cancelled flight.

zenvelo (39551points)“Great Answer” (1points) Flag as…

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