• The Federal Aviation Administration has ordered a 10% reduction in air traffic, pending details on affected locations and airlines.
• The move aims to alleviate pressure and ensure safety amid staffing challenges resulting from the government shutdown, officials said.
• Shares of major airlines declined in the after-market session on Wednesday.

Shares of major airlines slipped in after-market trading on Wednesday after the U.S. aviation regulator ordered a 10% reduction in air traffic at 40 major airports to reduce pressure and ensure safety, as federal staff work without pay during a government shutdown.

Delta Air Lines, Inc., American Airlines Group, Inc., United Airlines Holdings, Inc. and Southwest Airlines Co fell between 0.3% and nearly 0.6% in extended trading hours.  

Transportation Secretary Sean Duffy told reporters on Wednesday that the reduction, effective Friday, would help keep air travel safe as flight delays and cancellations continue to pile up. 

"We just can't ignore it," Federal Aviation Administration Administrator Bryan Bedford said. "When the early indicators are telling us we can take action today to prevent things from deteriorating."

Chaos At Airports

The shutdown, which began on Oct. 1, has exacerbated staffing issues at airports, leading to thousands of delayed or canceled flights and long security checkpoint lines. On Wednesday, some 866 flights were delayed, according to FlightAware.

Bedford and Duff said they would meet with airline leaders to determine how to implement the reductions fairly before announcing the details, including the 40 locations that would reduce daily flights.

The Wall Street Journal reported that airports serving Chicago, Nashville, and New York are particularly under pressure. Authorities issued a ground stop at New York City-area airports late last month due to staffing shortages.

Shutdown Raises Concerns For Holiday Travel

The aviation industry is among the many affected by the government shutdown, which is due to a delay in passing a federal funding bill. Earlier this week, 500 companies and groups operating in the travel industry, including transportation and hotels, signed a letter urging Congress to pass the spending bill and warning of potential chaos ahead of the holiday travel season if the shutdown continues.

Executives from several airlines reportedly met with Vice President JD Vance last week with the same message. Airlines for America, a trade group representing commercial carriers, said this week that more than 3.4 million passengers have been affected by delays and cancellations related to staffing shortages during the shutdown.

Retail Traders Largely Bearish

On Stocktwits, the retail sentiment was 'bullish' for DAL, and 'bearish' for AAL, UAL and LUV as of the latest reading.

On DAL's stream, a user hoped the stock would surge by over 11% to $65 once the shutdown ends.

Another user on AAL's stream, however, was more pessimistic, saying the government shutdown and holiday air travel season "are going to be an absolute disaster. I'm going to short."

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN06112025007385015968ID1110302627