Wall Street Breakfast: Bracing For Milton
Bracing for Milton
Hurricane Milton, which quickly strengthened to a Category 5 storm, is forecast to be among the most destructive to hit the Gulf Coast of Florida. More than 1M people have been ordered to evacuate, while companies across sectors are pausing operations.
Landfall soon: The storm is projected to make landfall in the densely populated Tampa Bay area Wednesday night, and will likely weaken to a Category 3 hurricane by then. But it’s still expected to cause major destruction. Around 2.8% of U.S. GDP is in the direct path of Milton, Ryan Sweet, chief economist at Oxford Economics, wrote on Tuesday. AccuWeather warned that economic losses from the storm could exceed $200B.
Air travel disrupted: Orlando International and Tampa International airports have suspended operations, with over 1,000 flights canceled as of today. Delta Air (DAL), American Airlines (AAL), Southwest (LUV) and United (UAL) issued waivers for customers who booked flights into or out of Florida airports that ceased operations. Many airlines also added flights to help people evacuating from Florida, but there have been allegations of price gouging. Airlines insist they’ve capped fares.
Other sectors: Kinder Morgan (KMI) shut its Tampa area terminals and pipelines. Several fuel terminals in the area shut off supply, and gas stations have run out of fuel as people evacuate in droves. Disney (DIS) announced theme park closures starting Wednesday, with its earnings expected to be impacted by up to $200M. Universal Orlando Resort and SeaWorld Orlando will also be closed, while cruise operators Royal Caribbean (RCL) and Carnival (CCL) adjusted certain schedules. Retailers such as Target (TGT) and Kohl’s (KSS) temporarily closed stores in the storm’s path.