3 ms·

They’re also on the hook for lodging and alternative travel arrangements for stranded travelers. The losses are probably significantly higher than your estimate

• dredmorbius 4y ago
  Fair point. I'm estimating based on fundamentals / first principles, and of course other factors can bump that up. I suspect that there are also performance fines possible from government --- Federal quite probably, state/local possible. Possibly also from various airport authorities. Note that this is speculation though grounded in some prior experience, e.g., $7.5 million in fines levied by the US Federal Government (Dept. Trans.) this past November: <https://www.npr.org/2022/11/14/1136678315/u-s-fines-airlines-7-5-million-and-they-must-refund-customers-for-cancelled-flig https://www.npr.org/2022/11/14/1136678315/u-s-fines-airlines...> And, as I noted, offset operational costs (e.g., fuel, as noted), which reduce total losses. Still, the basic point is that this is hundred-million-dollars level expensive, and that mitigations against that risk could themselves be expensive and still ultimately worthwhile.