Disruptions News & Analysis

Verizon (VZ) Cable Cut Disrupts Hundreds of Flights Monday

A cut Verizon cable in New Jersey disrupted hundreds of flights to and from Newark and Philadelphia on Monday. The Federal Aviation Administration (FAA) halted flights bound for these airports and diverted close to 70 planes. More than 400 flights at Newark were canceled, which accounts for over a quarter of the day's schedule, while nearly 400 flights in Philadelphia were also delayed. United Airlines and American Airlines waived change fees for affected travelers. This incident matters for investors because it highlights operational vulnerabilities that may affect airline revenues, particularly for United Airlines, whose hub at Newark was heavily impacted.