United Airlines CEO warns of long shutdown

United Airlines CEO Scott Kirby said the federal government shutdown could hurt bookings if it continues.

Despite the funding impasse, essential federal employees, including TSA officers and air traffic controllers, are being asked to work without pay. The shutdown began on October 1, as Congress failed to pass a funding bill.

Speaking on an earnings call Thursday, Kirby said the shutdown so far has not impacted the carrier’s business.

“I think at least for the first two weeks, people thought it would be resolved, so they carried on with business as usual,” he said. “But over time, as people read the headlines and say, ‘It’s not going to be solved soon.’ People start to lose confidence in the government and the government’s ability to solve this problem. And that will start to impact bookings.”

Kirby said there was no set maximum for when the airline could start seeing the impact, but added, “Every day that goes by, the risk to the American economy increases. So I hope we avoid an inadvertent mistake here.”

Delta Airlines CEO Ed Bastian last week issued a similar warning about how a prolonged shutdown would impact air travel, but stressed that the airline’s operations were not affected.

The FAA said the closure raised concerns about already short-staffed staffing among air traffic controllers. Inadequate staffing at some FAA facilities last week disrupted flights at airports, including those in Nashville, Tennessee, and Burbank, California.

Members of the union representing U.S. air traffic controllers distributed flyers outside New York’s LaGuardia Airport, as well as in Washington, D.C., and Chicago on Tuesday urging the public to demand lawmakers end the shutdown.

The more than month-long shutdown that began in late 2018 ended hours after a shortage of air traffic controllers disrupted air travel in the New York area.