A4A Warns Economic Impact of Shutdown Could Reach $580M Per Day

The trade group is urging Congress to reopen the federal government as quickly as possible.

United Express CRJ aircraft in Newark.
A United Express CRJ aircraft in Newark. (Photo: Shutterstock - Bui Le Manh Hung)
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Key Takeaways:

  • Airlines For America (A4A) warns that escalating FAA air traffic cuts, reaching 10% by Friday, could cost the U.S. economy up to $580 million daily if the federal government shutdown continues.
  • The cuts stem from a critical air traffic control staffing crisis, causing significant operational challenges for airlines and raising concerns that the National Airspace System may not stabilize even by Thanksgiving, a peak travel period.
  • A4A is urging the House to quickly approve the Senate-passed legislation to fund the government, aiming to avert further economic and operational disruptions caused by the staffing shortages.
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Airlines For America warned this week that FAA air traffic cuts could cost the U.S. economy up to $580 million per day if the federal government does not reopen soon.

The trade group estimates that, once a reduction of 10% comes into effect on Nov. 14, the economy will lose between $285 million and $580 million worth of activity per day until operations return to normal. Those figures factor in expected declines in traveler spending, state and local tax revenue, and spending within and outside the aviation sector.

The extent of the impact will ultimately depend on how effectively airlines can reaccommodate disrupted passengers on remaining flights, Airlines For America said.

The trade group also cautioned that airlines themselves will face growing operational challenges the longer air traffic control centers remain critically short-staffed.

“The staffing crisis has triggered broad secondary impacts – including late aircraft arrivals, crew legality issues, and equipment mispositioning – all of which prolong recovery, which will become worse as the directive phases up to 10% flight reductions,” it said.

Aircraft on the move at New York's LaGuardia Airport.
Aircraft on the move at New York’s LaGuardia Airport. (Photo: AirlineGeeks | William Derrickson)

In an effort to ease the growing strain on unpaid air traffic controllers, the FAA reduced air traffic at 40 major airports by 4% last Friday. The cutback grew to 6% on Tuesday and will rise again to 8% on Thursday and 10% on Friday.

Thousands of flights have been canceled, and there are growing concerns that, even if the federal government reopens soon, the National Airspace System will not be fully stabilized by the week of Thanksgiving, which is usually the busiest travel period of the year in the U.S.

Some air traffic controllers have stopped coming in to work during the shutdown, and a smaller number have resigned.

After weeks of gridlock, the U.S. Senate on Monday passed legislation that would fund the federal government through January 2026. The measure won support from nearly all Republican senators and eight centrist Democrats. The bill will now head to a vote in the U.S. House.

In a statement, A4A applauded the Senate’s breakthrough and urged the House to approve the bill as quickly as possible.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
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