Airline CEOs Warn of Potential Impact from Prolonged Government Shutdown

United Airlines CEO Scott Kirby has expressed concern that the ongoing federal government shutdown, which began on October 1 due to a funding impasse, could negatively impact airline bookings if it continues. Speaking during an earnings call on Thursday, Kirby noted that while the shutdown has not yet affected United's business, prolonged uncertainty may lead to decreased consumer confidence. He stated, "I think that at least for the first couple of weeks, people thought it was going to get resolved, so they just kind of continued business as usual. But as time goes on, as people read headlines and say, 'it's not going to get resolved soon.' People start to lose confidence in the government and the government's ability to resolve this. And that's going to start to impact bookings."

Kirby emphasized the growing risk to the U.S. economy with each passing day of the shutdown and expressed hope for a swift resolution to avoid unnecessary economic harm. Similarly, Delta Air Lines CEO Ed Bastian recently indicated that while Delta's operations have not been affected thus far, a prolonged shutdown could lead to disruptions. Bastian highlighted concerns over the strain on air traffic controllers, noting that their shortage has been a concern.

The shutdown has raised concerns about already thin-staffing among air traffic controllers, the Federal Aviation Administration said. Insufficient staffing at some FAA facilities last week disrupted flights at airports, including in Nashville, Tennessee, and Burbank, California. Members of the union that represents U.S. air traffic controllers handed out leaflets outside of LaGuardia Airport in New York, as well as in Washington, D.C., and Chicago on Tuesday to urge the public to ask lawmakers to end the shutdown. A more-than-monthlong shutdown starting in late 2018 ended hours after a shortage of air traffic controllers snarled air travel in the New York area.