Cargo airlines, shippers face mixed impact from FAA flight restrictions

Core Insights - The Federal Aviation Administration (FAA) has mandated a temporary 10% reduction in flight schedules at 40 domestic airports due to a government shutdown, which may cause shipping delays for businesses using passenger aircraft for freight transportation, but the impact on all-cargo carriers is expected to be minimal [1][3] Group 1: Impact on Cargo Operations - Freighter operators are not heavily exposed to the flight reductions as the FAA's mandate applies primarily to flights between 6 a.m. and 10 p.m., which is outside the peak hours for many express cargo operations [2] - The majority of cargo movement in the U.S. is exempt from the FAA's order as it does not apply to international flights [2] Group 2: FAA Order Details - The FAA's order aims to alleviate strain on the air traffic system and maintain safety as air traffic controllers face high absenteeism due to the ongoing shutdown, which has lasted 37 days [3][4] - The flight reductions will be implemented gradually, starting with a 4% reduction on Friday, increasing to 10% by the following Friday [5] Group 3: Industry Response - Cargo airlines are collaborating with the FAA to adjust operations and mitigate potential impacts on customers, with the responsibility primarily falling on airlines with a high volume of flights at the affected airports [5] - FedEx has stated it is monitoring the situation and developing operational modifications to ensure the safe and swift movement of shipments, particularly for critical items like pharmaceuticals and medical devices [6]