Vice President JD Vance cautioned that a prolonged government shutdown could cause major disruptions for the aviation sector during the Thanksgiving travel season, urging Democrats to end the shutdown.
‘Have A Conversation,’ Say Vance And Duffy
On Thursday, Vance met with the heads of the two major airlines United Airlines Holdings Inc (NASDAQ:UAL) and American Airlines Group Inc (NASDAQ:AAL), along with other industry representatives, at the White House. The CEOs warned of a potential crisis if the shutdown continues into the Thanksgiving travel period.
Vance highlighted the potential for increased employee absences, longer security lines, and flight delays if the shutdown extends into late November. “It could be a disaster. It really could be, because at that point you’re talking about people have missed three paychecks,” Vance warned.
"Stop this craziness and open the government," he added.
Meanwhile, Secretary of Transportation, Sean Duffy said, “..as this shutdown continues, you’re going to see more pressure on controllers, more pressure on TSA workers, and that’s going to have real impact.”
Both Vance and Duffy called on Democrats to “Have a conversation” on the policies but end the shutdown.
Airline CEOs from Delta Airlines (NYSE:DAL), United Airlines, Southwest Airlines Co (NYSE:LUV), and American Airlines urged Congress to pass a stopgap funding bill, known as a continuing resolution (CR), to reopen the government and resume healthcare policy talks.
Thanksgiving Season Under Pressure
The ongoing government shutdown has been a cause for concern in the aviation industry for several weeks. The shutdown has resulted in staffing shortages and financial strain on air traffic controllers, who have been working without pay and taking up additional jobs to make ends meet.
Amid the shutdown, airline workers have shown solidarity by providing free meals to air traffic controllers. However, the situation remains precarious, with investor Ross Gerber warning that the timing of the shutdown, just before the Thanksgiving travel season, could have a severe impact on air travel in the U.S.
On Wednesday, Rep. John James (MI-10) introduced the Keep America Flying Act in the House, a companion to Sen. Ted Cruz's (R-TX) bill, to ensure Federal Aviation Administration (FAA) and Transportation Security Administration (TSA) employees receive back pay and ongoing pay during the government shutdown.
Price Action: Over the past 30 days, shares of JetBlue Airways (NASDAQ:JBLU), Southwest Airlines, and United Airlines lost 16.06%, 5.70% and 3.23% of their value, respectively, as per data from Benzinga Pro.
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