Core Viewpoint - The approval of a deal by Senate leaders aims to end the longest government shutdown in U.S. history, which is expected to positively impact the domestic air travel sector by allowing air traffic controllers to return to work and reducing delays [1]. Group 1: Air Traffic Controllers and Delays - The deal will fund federal government agencies through January 2026, enabling air traffic controllers employed by the Department of Transportation to return to work, which is crucial as staff shortages have significantly impacted the aviation industry [2][3]. - Currently, over 13,000 air traffic controllers and more than 50,000 TSA agents are working without pay, contributing to 46% of flight delays being related to staff shortages [3]. - The return of air traffic controllers is expected to minimize delays during the busy Thanksgiving holiday season and prevent a potential 10% capacity reduction at over 40 major airports [4]. Group 2: Backpay and Employee Concerns - The agreement includes a clause that guarantees backpay to federal employees affected by the shutdown, alleviating uncertainties regarding compensation for furloughed workers [5]. - Earlier concerns were raised due to a 2019 backpay law that could have prevented some workers from receiving backpay [5]. Group 3: Airline Industry Response - American Airlines Group Inc. CEO Robert Isom has called for the government to end the shutdown to avoid further flight cancellations, as the airline canceled over 220 of its 6,200 scheduled flights [6]. - Isom has been in constant communication with Transportation Secretary Sean Duffy, expressing hope for a swift resolution to the shutdown [7].
As Lawmakers Advance Plan To End Historic 41-Day Government Shutdown, Here's How Air Travel Could Recover - American Airlines Group (NASDAQ:AAL), DoorDash (NASDAQ:DASH)