The shutdown sparked new uncertainty about holiday air travel and hurt airline stocks

Airports can seem like zoos on holidays. This year, capacity reductions resulting from the government shutdown could lead to more chaos.

Transport Minister Sean Duffy said yesterday that flight capacity will be reduced by 10% at selected airports from Friday to keep the workload sustainable for understaffed air traffic controllers, who are currently unpaid. Between 5 million and 6 million passengers traveled by air for Thanksgiving, the busiest travel holiday in recent years, according to the American Automobile Association.

Duffy said officials will participate today at the 40 airports that will be affected. The Department of Transportation and the Federal Aviation Administration had not posted an official list on their websites or social media accounts as of 4 p.m., but some media outlets reported that the cuts would include most major airports. Officials will start with about a 4% cut at the end of this week and then cut more as needed. The Wall Street Journal I mentioned.

It is unclear when Democrats and Republicans will reach an agreement to end the shutdown, which has extended into its second month. Nearly 45% of those betting on Polymarket, a predictions market, do not expect a resolution until at least November 16.

Uncertainty weighed on some airline stocks on Thursday. Shares of the largest US airlines fell throughout the day, with American Airlines (AAL) down about 2% at the close, and airlines Delta (DAL) and United (UAL) down about 1%. The JETS ETF, which includes airline stocks, fell about 1.5%.

Duffy said the reductions will ensure safety and reduce disruptions during the busy holiday season. “There will be more disruption,” Duffy said during an interview with Fox News on Thursday morning. “Am I going to keep booking? If there are deals, I will book.”

AAA spokeswoman Axa Diaz said it’s difficult to gauge how this dynamic situation will impact Americans’ travel plans, for example, by driving instead of flying.

“As we learn more about the affected airports, we will get a better idea of ​​the impact of the reduction,” Diaz said. “Some holiday travelers may wait closer to Thanksgiving to decide what they want to do.”

The airline group Airlines for America said it is working with the federal government “to understand all the details of the new curtailment mandate and will strive to mitigate impacts to passengers and cargo carriers.”

This article has been updated since it was first published to reflect stock closing prices and add context.