“Of course there’s an impact,” American Airlines CEO Robert Isom told CNBC on Friday when asked about the government shutdown affecting holiday bookings. “Nobody wants to put up with hassle. And, again, we’re doing everything we can to make sure our customers know, but as we get into the busiest travel part of the year, this is something that we just can’t let happen.”
Thanksgiving is just 18 days away, with the December holidays quickly approaching. “This is frustrating. We don’t need to be in this position. We’ve got to get the government back open so we don’t have to cancel flights,” Isom emphasized.
On Friday, American Airlines canceled more than 200 out of 6,200 scheduled flights, he added. So far, the airline isn’t canceling any service to smaller markets, but Isom warned that flight cancellations will rise over time. He also pointed out the broader economic impact, given how many people work in travel-related industries.
As of August, the leisure and hospitality sector employed just over 17 million people out of a total of roughly 171 million in the U.S. labor force, according to the Bureau of Labor Statistics. This equates to about one in every ten jobs.
Flight cancellations are primarily due to a shortage of air traffic controllers during the government shutdown. These controllers are required to work without pay, but since they still must cover their expenses, many are calling out sick or taking on secondary jobs, creating a staffing crunch.
“Most of the controllers can navigate missing one paycheck, virtually none of them can navigate missing two paychecks,” Duffy told Fox News on Friday.
In response to staffing shortages, the FAA is incrementally reducing air traffic by up to 10% by next week. The agency began with a 4% reduction in flight operations at 40 major airports on Friday, which will increase to 6% by November 11, 8% by November 13, and up to 10% by November 14.
On Friday alone, United Airlines, Delta Air Lines, and American Airlines canceled flights totaling between 3.5% and about 4%. Overall, approximately 1,000 flights were canceled largely due to the government shutdown, with hundreds more expected this weekend, according to The Associated Press.
For context, last year November and December together saw over 1.37 million domestic flights, according to the Department of Transportation.
Isom told CNBC that as flight disruptions increase, so do the challenges for the entire industry. “Managing the industry becomes exponentially harder as you increase the level of cancellations.”
https://fortune.com/2025/11/08/american-airlines-ceo-government-shutdown-holiday-travel-bookings-thanksgiving-flight-cancellations/
Be First to Comment