:max_bytes(150000):strip_icc()/GettyImages-2242129207-789d9b15073446adad7347a224e68790.jpg "The Shutdown Has Thrown New Uncertainty Into Holiday Air Travel—and Hit Airline Stocks")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2242129207-789d9b15073446adad7347a224e68790.jpg)
Key Takeaways
- About 40 airports will reduce flight capacity by 10% beginning Friday in response to the government shutdown, Transportation Secretary Sean Duffy said.
- It’s unclear whether Republicans and Democrats will reach a deal to reopen the government and improve staffing at airports ahead of the holiday season.
Airports can seem like zoos around the holidays. This year, capacity cuts stemming from the government shutdown could cause a little extra chaos.
Transportation Secretary Sean Duffy yesterday said flight capacity would be reduced by 10% at select airports beginning Friday to keep the workload sustainable for understaffed, and currently unpaid, air traffic controllers. Some 5 million to 6 million travelers have flown for Thanksgiving, the busiest holiday for travel, in recent years, according to the American Automobile Association.
Duffy said officials would today share which 40 airports will be impacted. DOT and Federal Aviation Administration officials didn’t respond to Investopedia’s questions about when further details will be released in time for publication.
It’s unclear when Democrats and Republicans will reach a deal to end a shutdown that has stretched into its second month; Nearly 50% of those wagering on Polymarket, a predictions market, don’t expect a resolution until at least Nov. 16.
The uncertainty weighed on some airline stocks Thursday. Shares of the biggest U.S. airlines were all down recently, with American Airlines (AAL) off by nearly 3%, and Delta (DAL) and Southwest (LUV) airlines dipping about 1%. The JETS ETF, which includes airline stocks, was off about 1.5%.
What This News Means for Consumers
Flying home for the holidays may be extra chaotic this year. Disruptions may be prevalent, so those booking flights may also want to have a backup plan in mind.
Duffy said the reductions would ensure safety and reduce disorder going into the busy holiday season. “There will be more disruption. Would I still book? If there’s deals out there, I’d book,” Duffy said during a Fox News interview he shared on X Thursday morning.
AAA spokeswoman Aixa Diaz said it’s hard to gauge how such a dynamic situation will influence Americans’ travel plans by, for instance, driving rather than flying.
“As we learn more about which airports are affected, we’ll get a better sense of the impact of the reduction,” Diaz said. “Some holiday travelers may wait closer to Thanksgiving to decide what they want to do.”
The airline industry group Airlines for America said it was working with the federal government “to understand all details of the new reduction mandate and will strive to mitigate impacts to passengers and shippers.”
