Airline Stocks Tumble as US Orders 10% Flight Cuts Amid Government Shutdown
U.S. airline stocks are facing significant pressure in early trading following a federal mandate to reduce flights by 10% at major airports. The move, driven by air traffic control safety concerns during the ongoing government shutdown, has rattled investors. United Airlines Holdings (UAL) led declines with a 1.2% pre-market drop, while American Airlines Group (AAL) and Delta Air Lines (DAL) fell 0.97% and 0.50%, respectively.
The shutdown, now in its third week due to congressional gridlock over fiscal 2026 funding, has already caused widespread flight disruptions. Unpaid air traffic controllers have contributed to delays and cancellations across the country. Transportation Secretary Sean Duffy confirmed the capacity cuts WOULD take effect Friday at 40 major airports, marking a turning point for an industry that had previously shown resilience to shutdown impacts.
