Businesses across the U.S. are bracing for widespread disruptions as Winter Storm Fern intensifies, with severe weather forecast from Texas to the Northeast through early Monday.
The long-duration storm is expected to bring heavy snow, sleet, and freezing rain, disrupting travel, retail activity, energy production, and power markets.
The National Weather Service warned that Fern could significantly impact the Southern Plains, Lower Mississippi Valley, Tennessee Valley, Southeast, and parts of the Northeast.
Social media images shared Friday afternoon showed empty supermarket shelves from Dallas to Boston as consumers rushed to stock up on essentials. Walmart Inc. (NASDAQ:WMT) said it is prioritizing the availability of critical items in affected regions, according to a report by Barron’s.
Airlines, Travel And Logistics Face Immediate Impact
Airlines have already begun scaling back operations. Delta Air Lines Inc. (NYSE:DAL) said it is adjusting staffing and aircraft positioning as cancellations mounted Friday across North Texas, Oklahoma, Arkansas, Louisiana, and Tennessee.
“We’re repositioning aircraft, aligning crew resources and reinforcing staffing at key airports while coordinating with our partners to help minimize disruption and set the stage for a fast, safe recovery once conditions improve,” said American Airlines Group Inc. (NASDAQ:AAL) on its website, noting that it has added more than 6,200 seats to minimize the disruption caused by the storm.
According to data from FlightAware, more than 10,000 flights were canceled on Sunday alone.
FedEx Corp. (NYSE:FDX) and United Parcel Service Inc. (NYSE:UPS) warned of possible delivery delays, while hotel operators such as Hilton Worldwide (NYSE:HLT) announced flexible cancellation policies for travelers affected by the storm.
Utilities including Entergy Corp. (NYSE:ETR) and Dominion Energy Inc. (NYSE:D) have activated storm-response teams in anticipation of outages and infrastructure damage.
Energy Production, Power Prices Hit
The storm is also beginning to weigh on U.S. energy markets. According to Reuters, freezing temperatures have disrupted crude oil and natural gas production while driving sharp moves in power prices.
The report, citing an estimate from Energy Aspects, states that U.S. crude production could fall by roughly 300,000 barrels per day, with the Permian Basin alone potentially losing 200,000 barrels per day due to freezing conditions. North Dakota regulators reported production declines of 80,000 to 110,000 barrels per day, representing up to 10% of the state’s output.
Energy Aspects added that natural gas production could drop by 86 billion cubic feet over the next two weeks, with Appalachia accounting for nearly half of that decline. Spot wholesale electricity prices surged above $200 per megawatt-hour in parts of the Southwest Power Pool due to congestion, the report added.
Retail, Restaurants And Consumer Stocks At Risk
Beyond energy and travel, Winter Storm Fern poses meaningful risks to consumer-facing businesses. Ice accumulation is particularly damaging because it can cripple infrastructure, trigger prolonged power outages, and force store closures.
Retailers and restaurants reliant on weekend foot traffic—including specialty apparel and department stores—could see earnings pressure if the storm intensifies. While grocery chains and home improvement retailers may benefit from a short-term surge in pre-storm demand, extended outages raise the risk of inventory spoilage and write-offs.
“Lost sales from Friday through Sunday are rarely recovered, and power disruptions layered on top of extreme cold could further suppress spending into next week. For exposed companies, that raises the risk of Q4 earnings downside,” said G2 Weather’s Paul Walsh in a recent note.
Walsh identified Walmart, Kroger Co. (NYSE:KR), Lowe’s Companies Inc. (NYSE:LOW), Home Depot Inc. (NYSE:HD), AutoZone Inc. (NYSE:AZO) as the retailers with major regional exposure.
Why It Matters
Winter Storm Fern is shaping up to be more than a routine weather event. From airlines and logistics firms to utilities, energy producers, and consumer-facing businesses, the storm threatens to disrupt operations and earnings across multiple sectors.
With power prices spiking, production offline, and thousands of flights already canceled, investors will be watching closely for which companies absorb the biggest financial hit as the storm unfolds.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Tada Images / Shutterstock
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