Travel Industry Braces for a Billion-Dollar Blow Amid Government Shutdown

A potential U.S. government shutdown threatens to disrupt the travel industry, possibly costing $1 billion per week. Key operations like TSA screenings and air traffic control could face significant delays, affecting travel plans during the busy holiday season.

The U.S. travel industry could face a severe financial hit of $1 billion per week if a government shutdown occurs, warns a leading trade group. The disruption could impact travelers significantly as a result of halted government functions, such as airport security and air traffic control.

A record 40 million passengers are expected to travel during the holidays. However, if a funding agreement is not reached, an extended shutdown could leave non-essential TSA and FAA workers furloughed, leading to airport operational issues, Fitch Ratings cautioned.

Among government workers, TSA officers and air traffic controllers would have to continue working without pay, if a shutdown begins on Saturday. In past shutdowns, increased worker absences have led to longer wait times and operational pressures, echoing 2019's impact on New York's air traffic.

(With inputs from agencies.)