United, Delta, American Airlines Stocks Fall After FAA Announces Flight Reductions

Core Points - U.S. airline share prices declined by at least 1% following the FAA's announcement of flight reductions at 40 major airports due to a government shutdown [1][3] - Alaska Airlines and Hawaiian Airlines parent company Alaska Group saw a drop of approximately 2.2%, while American Airlines Group fell by 1.5% [2][3] - The FAA's decision to reduce flights by 10% is a safety measure amid staffing issues caused by the government shutdown, potentially affecting 3,500 to 4,000 flights daily [7][8] Airline Responses - United Airlines stated that most customers' travel plans would proceed as scheduled and offered refunds for those who do not wish to fly [6] - Delta Airlines echoed similar sentiments, promising to provide notice to impacted customers and allowing changes or cancellations without penalties [6] Staffing Concerns - Air traffic controllers are expected to resign if they receive a $0 pay statement due to missed paychecks, which could exacerbate staffing shortages [5][8] - The government shutdown has already led to absenteeism among air traffic controllers and TSA officers, impacting airport operations [8]