US shutdown sends airlines scrambling as travel chaos looms
Transport Minister Sean Duffy said on Wednesday he would order serious cuts, citing air traffic control safety risks from the government shutdown.
The shutdown, now the longest in U.S. history, has forced nearly 13,000 air traffic controllers and 50,000 security monitors to work without pay, raising fears of travel disruptions during the upcoming Thanksgiving holiday.
Staff shortages have already caused tens of thousands of flight delays across the country, with airlines estimating that at least 3.2 million passengers have been affected.
The first round of reductions, cutting around 4% of scheduled flights, will come into effect from Friday, industry sources told Reuters. Blackouts will rise to 5% on Saturday, 6% on Sunday, and go up to 10% by next week if the shutdown continues.
Delta Air Lines said Thursday it will begin reducing flights starting Friday to comply with the directive but expects to operate the vast majority of its schedule as planned, including all long-haul international services. Most airline stocks were down in premarket trading, but Frontier Group gained 1% after its optimistic profit forecast on Wednesday.
CUTITIES THREATEN BUSY HOLIDAY TRAVEL
Unless the government reopens, the drastic plan threatens to throw holiday plans into chaos for millions of Americans traveling for Thanksgiving, marking one of the most visible ripple effects yet of the record-long government shutdown.
“They (airlines) may have some flexibility on prices, but if this shutdown lasts longer than that it should have a negative impact overall,” said David Morrison, senior market analyst at Trade Nation in the UK.
Airlines including United Airlines, American Airlines and Southwest were flooded with passenger inquiries on social media platforms like X, as flyers attempted to clarify travel plans.
In response to United’s post outlining flight discounts, one user
“Don’t make people wait to find out if they can fly home for the holidays.”
The Federal Aviation Administration is expected to officially issue the flight reduction order later in the day.
The move is aimed at relieving pressure on controllers as the FAA is short on staff of about 3,500, with many working mandatory overtime and even six-day weeks before the shutdown.
“This is a fluid situation, but we believe the impact is more manageable than the headlines imply…” TD Cowen’s Tom Fitzgerald said, adding that the timing of the end of the lockdown remains the key swing factor.
Carriers emphasized that they will try to minimize the disruption experienced by customers and that rebooking efforts are ongoing.
United CEO Scott Kirby said the airline will target cuts to regional flights and non-hub domestic flights, and that the carrier expects to rebook many affected passengers.
“I think the good news is that we’re in a period of low demand in November,” Frontier Airlines CEO Barry Biffle said Wednesday, adding that flight disruptions could even help the airline’s unit revenue.
