UAL - Ground Control To Congress Commencing Countdown Engines Off: How Government Shutdown Could Impact Air Travel | Benzinga
The travel industry has experienced a surge since coming out of the COVID-19 pandemic, fostering optimism for airline stocks.
But now a potential government shutdown could temper some of this optimism, with air travel and its patrons poised to experience the repercussions firsthand.
What Happened: A potential government shutdown nears a deadline of Saturday, Sept. 30 with a battle over funding bills in Congress. Failure to agree on the spending bills will see a government shutdown beginning Oct. 1, 2023.
While some federal services across the country will be halted completely as a result of the shutdown, federal agencies related to airlines will still operate, but they could be in limited capacity.
Federal Aviation Administration employees, which includes Transportation Safety Administration (TSA) agents and traffic controllers, are expected to report to work as normal. The employees will not get paid during the shutdown period, as reported by NBC News.
After a funding bill is passed, the employees will receive back pay.
With not all employees likely thrilled to work and not get paid immediately, some may choose to stay home. This could ...