Core Insights - The Canadian travel industry is facing disruptions due to U.S. flight controller shortages linked to a federal government shutdown, affecting both direct and connecting flights for Canadian travelers [8][9][12] - Travelers who purchased cancellation insurance before the government shutdown announcement may be eligible for compensation, while those who bought policies afterward will not be covered for related issues [1][6] - The average cancellation rate has exceeded the U.S. Federal Aviation Administration's (FAA) threshold, indicating ongoing flight delays and cancellations, with potential for further disruptions as legislative actions unfold [10][11] Insurance Implications - Insurance policies purchased before the travel advisory are valid for claims related to the shutdown, while those bought afterward are considered to cover a "known event" and are excluded from coverage [1][6] - Consumers are advised to review their credit card travel insurance terms, as coverage may only apply if the trip was booked using that specific card [7] Travel Disruptions - The FAA has warned of persistent flight delays due to staffing shortages at air traffic control facilities, affecting major cities including Phoenix, San Diego, New York, and Houston [10] - Canadian airlines have reported that passengers, especially those with connecting flights in the U.S., are likely to be impacted by these air traffic control restrictions [9][12] - The U.S. Senate has passed legislation to reopen the government, but further flight disruptions are anticipated until staffing levels stabilize, particularly during the busy Thanksgiving travel period [11][12]