WASHINGTON DC / LONDON (IT BOLTWISE) – The ongoing U.S. government shutdown is having a significant impact on the airline industry, particularly during the upcoming peak season. American Airlines and other airlines are being forced to cancel flights as a lack of air traffic controllers limits capacity. The economic impact is far-reaching, with many workers in the travel and hospitality industries affected.
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The ongoing U.S. government shutdown, now in its 39th day, is increasingly impacting the airline industry, particularly during the upcoming peak season. American Airlines, one of the largest airlines in the US, has already started canceling flights as a lack of air traffic controllers significantly limits capacity. American Airlines CEO Robert Isom expressed concern to CNBC about the impact on bookings for the holidays, emphasizing that no one wants to go through the extra hassle.
With Thanksgiving and December holidays approaching, the industry is facing a critical period. The Federal Aviation Administration (FAA) has ordered airlines to reduce flights as staffing shortages become more severe. This has already led to American Airlines canceling more than 200 flights out of a total of 6,200 scheduled on Friday. The cancellations mainly affect smaller aircraft and less frequented routes.
The economic impact is significant as many people are employed in the travel and hospitality industries. According to the Bureau of Labor Statistics, more than 17 million people worked in the sector as of August, accounting for about a tenth of the total U.S. workforce. The flight cancellations are a direct result of the shortage of air traffic controllers, who are having to work without pay during the shutdown. Many of them call in sick to take on part-time jobs, further exacerbating the staff shortage.
The FAA plans to gradually reduce air traffic by up to 10%, which will lead to further flight cancellations. 1,000 flights were already canceled on Friday and hundreds more are expected to follow suit over the weekend. Last year there were over 1.37 million domestic flights in November and December, highlighting the importance of this period for the industry. The challenges facing airlines are increasing as managing the industry becomes exponentially more difficult as cancellations increase.
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