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As Senate leaders approved a deal clearing the path to end the longest government shutdown in U.S. history, here's how the domestic air travel sector could recover.
The deal, which will fund the federal government agencies through January 2026, could see Air Traffic Controllers employed by the Department of Transportation (DOT) get back to work as staff shortages continue to impact the aviation industry, with Transportation Secretary Sean Duffy saying that the sector could slow down to a "trickle" ahead of Thanksgiving.
The U.S. currently employs over 13,000 air traffic controllers, as well as over 50,000 TSA agents, who are working without pay. Transportation Secretary Sean Duffy had warned that the Federal Aviation Administration (FAA) could close down airspace after pointing out that 46% of the delays were related to staff shortages.
Duffy had also mentioned that the ATCs were working gig economy jobs like driving for DoorDash Inc. (NASDAQ:DASH) or Uber Technologies Inc. (NYSE:UBER) just to "put food on the table" as the shutdown continues.
ATCs returning to work would help minimize delays currently plaguing the sector ahead of the busy Thanksgiving holiday season and could help avert a decision by the government to reduce capacity at over 40 major airports in the country by 10%.
The agreement could also see uncertainties over backpay being put to rest as the deal includes a clause that guarantees backpay to Federal employees affected by the shutdown.
The uncertainty stemmed from earlier reports where the Trump administration cited a 2019 backpay law signed by President Donald Trump during his first term in office, which could prevent furloughed workers from getting backpay.
Meanwhile, American Airlines Group Inc. (NASDAQ:AAL) CEO Robert Isom called on the government to put an end to the shutdown. “We’ve got to get the government back open so we don’t have to cancel flights,” Isom said as the airline canceled over 220 of its 6,200 scheduled flights on Friday.
Isom had earlier reassured investors that he was in constant contact with Duffy, exploring ways to end the shutdown. He had also expressed hope that the shutdown would end soon. "We're hopeful that action will be taken to reopen the government as soon as possible," Isom said during the company's third-quarter earnings call late last month.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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