Credit: Inside the MagicThe financial impact of the 2024 hurricane season has been made known.
Florida may be known as the Sunshine State, but its tropical climate brings more than just the sun. In late 2024, Florida and the surrounding states were battered by Hurricane Helene and Hurricane Milton. The latter, which made landfall as a category 5 storm in October, caused major theme park resorts like Walt Disney World Resort and Universal Orlando Resort to close their gates.
The Walt Disney Company has just released its Q1 financial results and the true cost of the 2024 hurricanes has been made public. Overall, the House of Mouse’s Q1 rose 5% to £24.7 billion versus Q1 from fiscal 2024, but the domestic theme parks dropped by the same amount.
“Disney’s experiences division, which includes its lucrative theme parks, cruise line and specialty travel experiences like the Aulani resort in Hawaii, reported revenue of $9.4 billion, up 3% compared to last year,” Los Angeles Times reported.
“The segment’s operating income was essentially flat for the quarter at $3.1 billion. Domestically, Disney’s parks and experiences reported $2 billion in operating income, a decrease of 5% compared to the previous year.”
According to the House of Mouse’s Q1 earnings report, the decrease in operating income was due to the effects of both Hurricane Milton and, to some degree, Hurricane Helene, as well as the pre-opening expenses related to the Disney Treasure cruise ship.
“Domestic parks and experiences’ operating results for the current quarter were unfavorably impacted by Hurricane Milton and, to a lesser extent, Hurricane Helene,” the Q1 report explains. As a result of Hurricane Milton, Walt Disney World Resort was closed for a day and we canceled a cruise itinerary.
The financial statement also confirms that there was a decline in attendance due to the hurricanes that hit Central Florida and the surrounding areas. They place the financial impact of the hurricanes at around $120 million. In its supplementary executive summary, Disney outlines that the quarter for Experiences proved “to be a strong start to the fiscal year,” and that they are optimistic for the year ahead.
Of course, many already know that the Walt Disney World Resort is undergoing some rather drastic changes this year. So much so, in fact, that some guests are skipping their visit in 2025 due to the significant amount of renovations, refurbishments, and closures happening across the resort’s four theme parks–Magic Kingdom, EPCOT, Disney’s Hollywood Studios, and Disney’s Animal Kingdom.
The development furthest along, it seems, is the evolution of DinoLand U.S.A. into the Tropical Americas-themed Pueblo Esperanza. The new location will see the Encanto and Indiana Jones franchises hit Animal Kingdom, with the overhaul well and truly underway.
Will you be visiting the Disney World parks this year? Let Inside the Magic know in the comments down below!