Business
Air traffic control shortages add to U.S. flight delays
The Hollywood Burbank Airport air traffic control tower stands in Burbank, California, on Oct. 6, 2025.
Mario Tama | Getty Images
A shortage of air traffic controllers could delay more flights, the Federal Aviation Administration warned on Wednesday, as concerns grow about the effect of the government shutdown on U.S. aviation.
About 10,000 flights were delayed on Monday and Tuesday, though disruptions dropped on Wednesday to just more than 1,900. A shortfall of already-thin air traffic control staffing this week had prompted the FAA to slow or halt arrivals in Burbank, California, and Nashville, Tennessee, among others.
Transportation Secretary Sean Duffy warned Monday that the FAA is seeing a “slight uptick” in sick calls of air traffic controllers.
The shutdown is exacerbating concerns about the strain on air traffic controllers, a shortage of whom has vexed airline executives for years.
“Nearly 11,000 fully certified controllers remain on the job, many working 10-hour shifts as many as six days a week, showing extraordinary dedication to safely guiding millions of passengers to their destinations—all without getting paid during this shutdown,” the air traffic controllers’ union, the National Air Traffic Controllers Association, said in a statement.
Earlier Wednesday, the FAA had warned there could see a staffing trigger at Newark Liberty International Airport, but that caution had been removed by the afternoon. Newark was not seeing an influx of flight delays.
The government shutdown stretched into its eighth day Wednesday, as the Senate failed to pass a funding proposal again.
During a shutdown, “essential” workers such as air traffic controllers and TSA agents are continuing to work without pay, while many other employees are placed on furlough.
A more than monthlong shutdown that started in late 2018 ended early the next year, hours after a shortage of air traffic controllers snarled air travel in New York.
ISLAMABAD:
Pakistan on Wednesday informed the International Monetary Fund (IMF) that its economy suffered Rs744 billion in losses due to floods, with 60% of the damage occurring in the agriculture sector and again sought adjustment of these losses against the programme targets.
The preliminary damage assessment has been shared with the IMF, as Finance Minister Muhammad Aurangzeb confirmed that the review talks concluded with the global lender on Wednesday. The talks were aimed at securing two loan tranches totalling around $1.2 billion under separate loan programmes.
Aurangzeb said that the IMF had shared the Memorandum for Economic and Financial Policies (MEFP) and that the Staff-Level Agreement for completing the second review would be announced after further discussions. The MEFP is a set of policy documents agreed upon by both sides. “There has been a broader consensus with the IMF,” said the finance minister during an informal discussion outside the Q Block with journalists from two media outlets.
Sources said that towards the conclusion of the talks, discussions focused on adjusting the impact of the floods against the programme’s targets of primary budget surplus and provincial cash surplus. The finance ministry also briefed the prime minister in this regard, they added.
The IMF had set the primary budget surplus target at Rs3.1 trillion and had earlier indicated roughly Rs500 billion adjustments within the budget to offset the flood impact. Sources said that the finance ministry wanted the IMF to allow adjustments against the target to the extent of the actual damages.
According to preliminary findings shared with the IMF, the economy sustained Rs744 billion in losses. After adjusting these losses, the economic growth is now projected to remain at 3.5%, against the annual target of 4.2%. The revised growth projection is still about 1% higher than the World Bank’s recent projection of 2.6%, which also cited flood damage.
Of the Rs744 billion losses, Punjab bore Rs632 billion, according to initial assessments. Khyber-Pakhtunkhwa (K-P) reported Rs51.3 billion in losses, followed by Sindh with Rs32.2 billion, another Rs12.6 billion in K-P, and Rs6.8 billion in Balochistan.
Flooding in three rivers and flash rains in the country’s upper regions inundated large areas, forcing the evacuation of 6.5 million people.
The projected Rs744 billion losses are double the earlier Rs370 billion estimate shared with the IMF.
Details show the agriculture sector sustained Rs439 billion in losses, roughly 60% of the total. Almost all these were crop-related. As a result, agriculture growth is now projected at 3%, compared to the 4.5% target. Growth in the crops sub-sector is expected to fall below 1%, against the target of 5.4%. Crops on 3.3 million acres and 22,841 livestock were affected.
Roughly one-third of the cotton crop was destroyed, with output now projected at 7.2 million bales, a reduction of up to 3.4 million bales, as per preliminary estimates.
Authorities estimated that 12.6% of the rice crop was damaged, with expected production at 8.9 million tonnes, representing a loss of 600,000 to 1.2 million tonnes. Sugarcane production has been revised to 79 million tonnes, reflecting losses between 1.3 million and 3.3 million tonnes, or 4% of budget estimates. Maize production is projected to decline by 13%, with output capped at 9.2 million tonnes.
The industrial sector sustained Rs48 billion in losses, with its annual growth rate revised slightly down to 4.1%, according to the assessment.
The services sector is projected to have suffered the second-highest losses of Rs257 billion, reducing its growth forecast by 0.4% to 3.6%. Within services, the transport and storage subsector incurred the highest loss, Rs150 billion, cutting its growth rate almost by half to 1.9%. Real estate activities recorded Rs55 billion in losses, while wholesale and trade sectors lost Rs40 billion.
Preliminary assessments showed that 229,763 houses were damaged, 790 bridges destroyed, and 866 water infrastructure systems washed away. About 2,811 kilometres of roads were damaged.
In Punjab alone, 213,097 houses were damaged, followed by 6,370 in Balochistan, 3,332 in Sindh, 3,222 in K-P, 2,417 in Azad Kashmir, and 1,260 in Gilgit-Baltistan. In Punjab, 1,216 kilometres of roads and 462 bridges were destroyed, while 5,467 livestock perished.
A total of 1,037 deaths and 1,067 injuries were reported nationwide. The highest number of deaths, 509, occurred in K-P, followed by 322 in Punjab, 90 in Sindh, 38 each in Balochistan and Azad Jammu and Kashmir, 31 in Gilgit-Baltistan, and nine in Islamabad.
Floodwaters also affected eight mines and 1,297 commercial shops. About 2,267 educational institutions, 243 health facilities, and 129 public buildings were damaged. The floods disrupted normal life in 70 districts, affecting 6.5 million people, of whom four million were relocated to safer areas.
NEW DELHI: Prime Minister Narendra Modi on Wednesday made a pitch to boost investments in manufacturing in the country, saying, it is the “best time to invest, innovate and make in India”, which should be positioned as a “trusted partner” in the global supply chain. The statement comes when India faces tariffs headwinds from the US, while looking at striking trade agreements and global alliances for pushing the export economy.PM Modi said that led by technologies, such as 4G and 5G in telecom, digital and internet have emerged as the backbone of the country. “Cost of one GB wireless data in India is now lower than price of a cup of tea… (and) India ranks among leading nations in per-user data consumption, signifying that digital connectivity is no longer a privilege or luxury but an integral part of everyday life,” the PM said as he inaugurated 2025 edition of the India Mobile Congress (IMC).Speaking to a gathering of domestic and global business leaders, including Reliance Jio chairman Akash Ambani, Airtel chief Sunil Mittal, and a large number of startups and new-age deeptech companies, Modi said India is today leading with a mindset that is focussed on expanding industry and investment.“India Mobile Congress and India’s success in the telecom sector reflect the strength of the Atmanirbhar Bharat vision,” Modi said, recalling how the idea of ‘Make in India’ was once “mocked by skeptics who doubted India’s ability” to produce technologically-advanced products, citing delays of decades in adopting new technologies during earlier regimes. “The nation has responded decisively. The country, which once struggled with 2G now has 5G coverage in nearly every district. Electronics production has increased six-fold since 2014, mobile phone manufacturing has grown 28 times, while their exports have surged 127 times.”He said govt has been taking steps to make it easier for corporates to invest and expand. “The country’s democratic setup, govt’s welcoming approach, and ease of doing business policies have established India as an investor-friendly destination…”
The sunset is reflected in the windows of the US Capitol as a man runs on the National Mall in Washington, DC, on October 1, 2025, the first day of the US federal government shutdown.
Andrew Caballero-reynolds | Afp | Getty Images
A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
When the government shuts down, real estate watchers tend to focus first on the impact to the residential market. Potentially thousands of home sales will be held up because the federal flood insurance program is no longer able to issue new policies; the Federal Housing Administration, Department of Veteran Affairs and Department of Agriculture might slow or suspend their mortgage processing; and the IRS might not process tax transcripts or income verification documents as quickly.
But the impact to commercial real estate, while not quite as immediate, is much more far-reaching. A government shutdown delays government data on the economy. It causes uncertainty in the financial markets and, consequently, commercial real estate dealmaking, especially for small businesses. It also hits investor confidence. Finally, but most immediately, it causes a pullback in consumer demand for certain sectors.
According to a post from the Commercial Real Estate Alliance (CREA), potential ramifications include:
- Reduced demand for CRE as businesses and government agencies delay or cancel leasing and development projects.
- Greater difficulty for CRE investors and developers to obtain financing and conduct transactions amid uncertainty and market volatility.
- Delayed approvals of permits or other government sign-offs necessary for CRE development projects.
Economic data
The government shutdown meant there was no release of the September monthly employment report from the Bureau of Labor Statistics. That affects investors who need this kind of data to make decisions about the state of the economy and interest rates.
If the shutdown continues, the Census Bureau will not release economic data on construction spending, housing starts and building permits. Those are all key for multifamily investors.
CRE finance
Market uncertainty leads to tighter credit from lenders and potentially higher risk premiums on deals, especially if they have anything to do with federal programs.
“Investors in general and lenders specifically look for stability, and when there’s political instability, it always creates more caution about making investment decisions and lending,” said Ran Eliasaf, founder and managing partner of Northwind Group, a real estate private equity and debt fund manager. “We think the biggest risk to underwrite is political risk. It’s true for the federal level, like government shutdown, and it’s true for local, like the New York City mayoral election.”
Retail, hospitality, senior housing
Looking at specific sectors, retail and hospitality will see the quickest impact because they are entirely consumer driven. Consumer spending, especially in areas where there is a high concentration of federal workers, could drop as employees are furloughed or even laid off.
“I think that’s a big risk,” said Christine Cooper, chief U.S. economist and managing director at CoStar, a commercial real estate information and analytics firm. “Think about all the small retailers and coffee shops. They have very slim margins, so they’re more likely to be disrupted if they lose their customers. They won’t be able to afford it, and you’ll see some closures in pretty short order.”
It’s a similar situation in hospitality, where closures in government services and at national parks will impact tourism. Washington, D.C.’s tourism has already been hit by the administration’s activation of the national guard and other federal troops. This is just one more strike against the city.
Skilled nursing facilities and senior care properties could also see deal delays. Those, along with affordable housing projects, use financing from the U.S. Department of Housing and Urban Development (HUD).
“I think [for] HUD financing, the queue will get longer. Applications will not be processed,” said Eliasaf.
Federal CRE
The federal commercial real estate market will take the hardest hit, as sales of those properties, which are managed by the General Services Administration (GSA), will either be delayed or stopped. Federal contracts, including new leases and property maintenance agreements with tenants, will also have to wait.
“It’s going to impact dealmaking. Definitely anybody that’s negotiating a GSA lease, a government-backed lease, from the VA to even securing HUD financing is going to run into some issues right now,” said Eliasaf.
Depending on how long the shutdown lasts, REITs that cater to federal agencies, like Easterly Government Properties and JBG Smith that depend heavily on government rent payments, could be impacted.
In an SEC filing earlier this year, Easterly said, “substantially all of our revenue is dependent on the receipt of rent payments from the GSA and U.S. Government tenant agencies.”
As for the current shutdown, an Easterly spokesperson said, “In past instances, our tenants continued to operate because their work is considered essential to national security, law enforcement, and public health. Our portfolio is deliberately concentrated in these mission-critical facilities, and our long-term, binding leases ensure that rental obligations remain in place.”
Construction
If past shutdowns are any guide, the construction sector will be hit as well. A report from ConstructConnect, an information and technology company for the construction industry, notes that the government shutdown in 2013 hit federally funded infrastructure projects, because permit reviews by the Environmental Protection Agency stopped. Contractors and trade specialists rely on those permits to mobilize crews.
And, the 2019 shutdown “froze billions of dollars in federal construction spending, stalled approvals for projects tied to the Department of Transportation, and disrupted bidding timelines, which squeezed subcontractors like electricians, plumbers, and concrete specialists, who depend on predictable project starts to manage labor, materials, and cash flow,” according to the report.
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