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The Donald Trump administration has warned that worsening air traffic controller shortages caused by the prolonged government shutdown could soon ground thousands more flights, disrupting travel just as the busy holiday season approaches. FAA Orders Airlines To Slash Flights As Shutdown Drags On Transportation Secretary Sean Duffy warned that he may order airlines to cut up to 20% of flights nationwide if the shutdown continues, Reuters reported on Friday. The Federal Aviation Administration has already instructed airlines to reduce flights by 4% at 40 major airports, with cuts expected to rise to 10% by Nov. 14 if the standoff in Washington persists. “We’re going to make decisions based on what we see in the airspace,” Duffy said, saying that safety data and rising absenteeism among air traffic controllers were driving the decision. The reductions, which took effect at 6 a.m. ET, impact roughly 700 flights operated by the nation's four largest carriers — American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and United Airlines (NASDAQ:UAL). See Also: Powell Taps The Brakes In The Fog, But Traders Keep Hitting The Gas The cuts are expected to increase to 6% on Tuesday and reach 10% by November 14 if the shutdown continues. Earlier this week, the FAA said 20–40% of controllers have not been showing up for work on any given day as more than 13,000 controllers and 50,000 security screeners continue working without pay. Thousands Of Flights Delayed, Airlines Brace For Chaos By Friday evening, over 5,300 flights were delayed and hundreds were canceled across major U.S. airports, including Atlanta, San Francisco, Houston, Phoenix, Washington, D.C., and Newark, according to FlightAware. At Reagan National Airport, delays averaged four hours, with nearly 40% of flights delayed and 17% canceled. Political Standoff Deepens As Economic Costs Mount The shutdown, now in its second month, stems from a budget impasse between Republicans and Democrats. The White House blames Republicans for refusing to negotiate over health insurance subsidies, while GOP leaders accuse Democrats of blocking their funding plan. This week, Goldman Sachs warned the shutdown could shave more than a full percentage point off U.S. GDP growth in the final quarter of 2025 due to delayed spending and reduced investment. According to Benzinga's Edge Stock Rankings, American Airlines continues to maintain an upward trajectory across short, medium, and long-term periods. Click here for a detailed breakdown of the stock's performance and how it stacks up against its peers. Read More: Nvidia CEO Jensen Huang Says Intel Spent 33 Years ‘Trying To Kill Us' But Now Calls The Chip Rival A Partner: ‘We're Lovers, Not Fighters' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock
