Los Angeles: $57 Billion in Wildfire Losses

The American weather forecasting company AccuWeather announced that initial estimates of the cost of wildfires raging across large parts of Los Angeles range between $52 and $57 billion.

This announcement was made in a statement by the company as local authorities and neighboring states struggle to contain the worst natural disaster the city has faced in decades. The fires, caused by an electrical short circuit, have resulted in several fatalities and more than 100,000 displacements, according to Anadolu Agency.

In its statement, AccuWeather noted: “The current wildfire could become the worst forest fire in California’s history, given the number of buildings and structures that may burn.”

California has a long history of wildfires ignited by power lines during strong winds. Shares of Edison International, the electricity provider, fell 10% at the close of Wednesday’s trading session, marking their largest drop since 2020.

On Thursday, Bloomberg published an interactive report stating that if AccuWeather’s predictions prove accurate, this wildfire will be the most expensive in U.S. history.

Since Wednesday, museums, amusement parks, farmers’ markets, and restaurants have closed their doors. The Los Angeles Kings hockey team also postponed their scheduled game on Wednesday evening in downtown Los Angeles.

According to the California State Board, at least five major wildfires have broken out in various parts of Los Angeles since Tuesday.

On Thursday, U.S. Secretary of Defense Lloyd Austin told reporters that the Pentagon is ready to provide aircraft to assist in extinguishing the fires from the air.

Austin, currently in Germany, added: “Many U.S. military facilities in the region have personnel and equipment that can also be deployed to combat this devastating fire.”

Due to the fires, U.S. President Joe Biden canceled his planned visit to Italy, his final overseas trip before the end of his term, according to American media.

On Wednesday, Biden declared the wildfire-stricken area in California a “disaster zone” and ordered federal aid to support the affected residents.

On Tuesday evening, massive wildfires broke out in Los Angeles, fueled by strong winds and dry weather conditions.