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Transportation Secretary Sean Duffy has announced that his department will be ordering 10% of all flights to be cut across 40 major U.S. airports, as the government shutdown continues to strain the nation’s aviation system.
Speaking to the press on Wednesday, Duffy emphasized his department’s role in keeping “this airspace as safe as possible,” while noting the rising fatigue among air traffic controllers.
This, he said, was largely due to most of them going without pay for over a month, owing to the current government shutdown, which is now entering its 36th day. As a result, the administration plans to cut flight traffic, starting this Friday, until facilities and staffing conditions are back to normal.
Duffy said that this was “data-based” and was not airline-specific. “This is about where the pressure is and how do we alleviate [it].”
The Federal Aviation Administration’s Bryan Bedford cited voluntary safety reports from commercial pilots for this decision. He added that the FAA will be asking airlines to work with them “to reduce their schedules pro rata through the day.”
Bedford also mentioned that the list of affected airports will be released shortly, giving airlines and travellers sufficient time to plan.
Major airline stocks, despite being unfazed during the initial weeks of the shutdown, are seeing a dip in after-hours trading following the announcement.
| Stock / ETF | After Hours | Year-To-Date Performance | Since Government Shutdown |
| American Airlines Group Inc. (NASDAQ:AAL) | -0.52% | -21.06% | +19.07% |
| Delta Airlines Inc. (NYSE:DAL) | -0.44% | -0.90% | +4.33% |
| Southwest Airlines Co. (NYSE:LUV) | -0.60% | -5.24% | -2.04% |
| United Airlines Holdings Inc. (NASDAQ:UAL) | -1.40% | +1.28% | +3.75% |
American Airlines CEO Robert Isom had warned during his company's recent earnings call that there were "difficulties in terms of operating delays and issues with air traffic control."
Isom added that he remains in touch with Duffy, and was "hopeful that action will be taken to reopen the government as soon as possible."
This also comes with the peak travel season right around the corner, with Thanksgiving just a few short weeks away, which will kickstart the major U.S. holiday season that lasts until New Year’s in January, during which an estimated 119 million Americans will be traveling, according to the American Automobile Association.
The shutdown is expected to last more than 45 days, according to prediction market Kalshi, with a 54% chance and a median of 45.9 days.
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Photo: Miguel Lagoa / Shutterstock
