Government shutdown could close some US airspace, airline stocks fall

WASHINGTON - US Transportation Secretary Sean Duffy warned on Nov 4 he could be forced to close some of the national airspace to air traffic if the federal government shutdown extends for another week, warning of travel chaos and sparking a selloff in airline shares.

The shutdown entered its 35th day due to a political stalemate over government funding, forcing air traffic controllers and airport security screeners to work without pay.

The stand-off is amplifying staffing shortages, causing widespread flight delays and longer security wait times.

An airline industry group estimates that over 3.2 million passengers have been affected by flight delays or cancellations due to a spike in air traffic controller absences since the shutdown began Oct 1.

Airlines have been raising concerns with lawmakers about the impact on operations.

“If you bring us to a week from today, Democrats, you will see mass chaos, you will see mass flight delays. You’ll see mass cancellations, and you may see us close certain parts of the airspace, because we just cannot manage it,” Mr Duffy said at a press conference on Nov 4.

“We will restrict the airspace when we feel it’s unsafe.”

The comments represented the Trump administration’s most dire warnings of impending impacts from rising air traffic controller absences.

Shares of Southwest, Delta, United, and American Airlines closed down 3 per cent to 5 per cent after the comments.

Mr Duffy did not provide details on how the government would structure such a move.

Industry experts warn that because the air traffic control system is an intertwined network, even a partial closure of the airspace would have nationwide consequences.

“You can’t simply close one sector without it affecting the rest of the country,” said Dr Sheldon Jacobson, a professor at the University of Illinois.

The last time the United States fully closed its airspace for domestic air traffic was on Sept 11, 2001, in response to terrorist attacks.

Airlines say the shutdown has not significantly affected their business, but have warned bookings could drop if it drags on.

Tens of thousands of flights have been delayed over the last month.

On Nov 4 alone, more than 2,900 flights were delayed as the FAA imposed delays in Phoenix and Houston after seeing staffing issues in Denver, Detroit, and elsewhere.

FAA Administrator Bryan Bedford told Fox Business’ Varney & Co that 20 to 40 per cent of controllers at the agency’s 30 largest airports are failing to show up for work.

Democrats blame Republicans for not negotiating with them to reopen the government.

The shutdown has exacerbated staffing shortages, forcing 13,000 air traffic controllers and 50,000 Transportation Security Administration officers to work without pay, leading many of them to call in sick or absent.

In 2019, widespread disruptions in air travel pressured lawmakers into ending a 35-day government shutdown during Mr Trump’s first term in office. REUTERS