Travel chaos: US shutdown hits airlines hard as 8,000 flights cancelled; carriers brace for costly holiday ripple effects

The longest federal government shutdown in US history has upended airlines’ holiday quarter expectations, grounding thousands of flights and forcing carriers to scramble for contingency plans as operations across the country remain crippled.Airlines, which had been counting on a rebound in corporate and leisure travel, are now seeing Thanksgiving bookings grow by just 1% since late October — roughly half the expected pace, according to aviation analytics firm Cirium, Reuters reported. The slump underscores travellers’ hesitation amid the prolonged shutdown.

The Senate on Monday approved a bill to restore federal funding, raising hopes that the shutdown could end within the week. However, industry executives warned disruptions would likely persist. According to FlightAware data, over 8,000 flights were cancelled in the past four days — nearly double the cancellations seen in the entire first month of the shutdown. The Federal Aviation Administration (FAA) has since ordered progressive flight cuts at 40 major airports.Widespread cancellations have left pilots and crew reaching their federally mandated duty limits before completing routes, forcing airlines to reshuffle schedules. Delta and United have offered premium pay to incentivise pilots and flight attendants to take additional trips, while other carriers are relying heavily on reserve crews, Reuters reported.JetBlue’s senior vice president of system operations and airports, Steve Olson, told Reuters, “What we do today matters because it’s going to influence how the rest of the month is going to pan out.”The broader industry impact is significant. Airline Reporting Corp. data showed that US air ticket sales through November fell 10% year-on-year, while major carriers such as American Airlines and Delta estimated daily revenue losses nearing $1 million during the shutdown’s early weeks. Analysts now expect those losses to surge.Daniel McKenzie of Seaport Research Partners said the 10% FAA-mandated cuts could cost airlines about $10 million a day, potentially ballooning to $45 million daily if restrictions extend through Thanksgiving.Budget carriers such as Frontier and Allegiant face steeper risks due to their limited flight frequencies, while larger airlines like American, Delta, and United could absorb some diverted traffic, McKenzie noted.While the FAA aims to restore full operations once government funding resumes, the exact recovery timeline remains uncertain — leaving airlines and passengers alike bracing for turbulence well into the holiday season.