Flight cancellations ease, hitting lowest rate in almost a week, with end to the shutdown in sight

Core Insights - Flight cancellations in the U.S. have decreased, with 811 departures canceled on Wednesday, representing 3.5% of the airlines' schedule, the lowest rate since the previous Thursday [2] - The ongoing federal government shutdown has significantly impacted air travel, with air traffic controllers working without pay, leading to staffing shortages and increased flight disruptions [2][7] - Major airlines, including Delta Air Lines, are experiencing financial impacts due to the shutdown, but it is not expected to eliminate profits entirely [4] Industry Impact - The shutdown, which began on October 1, has resulted in thousands of flight cancellations and delays, affecting the travel plans of approximately 5 million passengers [7] - Air traffic controller staffing levels have been critically low during the shutdown, prompting some controllers to seek additional employment to support themselves [7] - Transportation Secretary Sean Duffy indicated that air travel may not return to normal immediately after the shutdown ends, depending on the return of air traffic controllers to work [8] Market Reaction - U.S. airline shares saw a broad increase on Wednesday ahead of the House vote on the funding bill [6]