Leading U.S. carriers that include American Airlines (AAL), United (UAL), and Southwest (LUV) canceled more than 2,500 flights over the weekend due to the ongoing government shutdown.
The Trump administration ordered flights cut by 10% at 40 airports across the U.S. due to a growing shortage of air traffic controllers who aren’t being paid as the shutdown in Washington, D.C. drags on and becomes the longest in American history.
U.S. President Donald Trump is warning that the number of flights to be canceled could rise to 20% if the situation with air traffic control worsens.
A growing number of air traffic controllers at major U.S. airline hubs such as Atlanta, Chicago, and Los Angeles have been calling in sick or refusing to work without pay.
The situation looks likely to worsen leading into American Thanksgiving at the end of November, which is typically the busiest travel time of the year in the U.S.
Analysts who cover the airline industry are warning that that the upheaval will likely intensify and spread beyond the U.S. if the number of flight cancellations keep growing.
Already, there are reports of spillover impacts at airports in neighbouring Canada and as far away as Europe, as U.S. airports prioritize domestic flights over international ones.
Freight shippers such as Federal Express (FDX) and United Parcel Service (UPS) are also being impacted as the busy holiday shipping season kicks into high gear.
A UPS airplane crashed in Kentucky last week, killing 14 people and causing widespread destruction. The cause of that crash is under investigation.
The situation also threatens to negatively impact the stocks of major U.S. airlines such as AAL, UAL and LUV, all of which are either down or flat on the year.
