The government shutdown's negative impact on the travel economy tops $1B

[Delta Airlines Airbus A319 Portland Oregon.]
DaveAlan

The U.S. Travel Association estimated that over $1.1 billion of travel spending has been lost since the beginning of the government shutdown.

U.S. Travel Association CEO Geoff Freeman said the shutdown is doing real, irreversible damage. "Travel keeps America moving. When travel is delayed and services are disrupted, the ripple effects reach every corner of our country," he stated.

The clearest sign of the damage to the travel industry is from flight delays across the U.S., due largely to air traffic controller shortages. The running tally includes 5,233 delayed flights on Sunday, another 6,154 on Monday, another 3,829 on Tuesday, and at least 1,924 on Wednesday as of 2:10 p.m. Those delays lead to a loss of travel economy activity in a myriad of ways.

The shutdown began on October 1, after Congress failed to reach an agreement over funding for the 2026 fiscal year due to disputes over spending levels, health insurance subsidies for the Affordable Care Act, and the rollback of certain Medicaid cuts instituted by President Trump’s administration. The Republican-sponsored funding bills to reopen the government needed 60 votes in the Senate to overcome a filibuster. While John Fetterman of Pennsylvania, Catherine Cortez Masto of Nevada, and Angus King of Maine broke ranks to vote with Republicans in the Senate, Republican Senator Rand Paul voted against the GOP bills.

Looking ahead, the earnings season for the airline sector begins on October 9 when Delta Air Lines (DAL [https://seekingalpha.com/symbol/DAL]) reports earnings.

AIRLINE STOCKS: American Airlines (AAL [https://seekingalpha.com/symbol/AAL]), Delta Air Lines (DAL [https://seekingalpha.com/symbol/DAL]), Southwest Airlines (LUV [https://seekingalpha.com/symbol/LUV]), United Airlines (UAL [https://seekingalpha.com/symbol/UAL]), JetBlue Airways (JBLU [https://seekingalpha.com/symbol/JBLU]), Alaska Air Group (ALK [https://seekingalpha.com/symbol/ALK]), Allegiant Travel (ALGT [https://seekingalpha.com/symbol/ALGT]), Spirit Airlines (OTC:SAVEQ), Mesa Airlines (MESA [https://seekingalpha.com/symbol/MESA]), SkyWest (SKYW [https://seekingalpha.com/symbol/SKYW]), Sun Country Airlines (SNCY [https://seekingalpha.com/symbol/SNCY]), and Frontier Group (ULCC [https://seekingalpha.com/symbol/ULCC]).

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