Air Traffic Turmoil: Shutdown Causes Aviation Chaos

U.S. Transportation Secretary Sean Duffy plans a 10% air traffic cut at major airports amid the ongoing government shutdown, which has led to thousands working without pay and massively disrupted air travel. Airlines warn of aviation safety risks as the industry continues to grapple with increasing flight delays.

U.S. Transportation Secretary Sean Duffy is set to reduce scheduled air traffic by 10% at 40 major airports come Friday, should a resolution to the government shutdown not be reached, sources familiar with the developments report. This move comes as air traffic controllers and TSA officers are forced to work without pay, creating significant disruptions in air travel.

On Tuesday, Duffy cautioned that if the shutdown continued for another week, it might culminate in 'mass chaos,' potentially leading to some national airspace closures. Such drastic measures could upend the American aviation industry, prompting airlines to repeatedly appeal for an end to the shutdown, as they raise concerns over aviation safety risks.

The impact is already being felt in the market, with shares of major airlines like United and American Airlines dropping about 1% in after-hours trading. An industry group estimates that flight delays and cancellations have affected over 3.2 million passengers since the shutdown's inception on October 1. While airlines claim the shutdown has not critically impacted their operations, they warn of a decline in bookings if the situation persists.

(With inputs from agencies.)