Business
FAA announces flight reductions at 40 airports. Here’s where cuts are expected and what travelers need to know
A Republic Airways plane takes off near the air traffic control tower at Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia, US, on Tuesday, Oct. 28, 2025.
Samuel Corum | Bloomberg | Getty Images
Airlines rushed to provide travelers updates this week after the Federal Aviation Administration said it would reduce flights across 40 airports as the longest government shutdown in history continues to drag on.
Many major airlines said they would waive cancellation fees for even their most basic tickets, which often come with penalties for changes.
Transportation Secretary Sean Duffy previously said he would reduce flight capacity by roughly 10%, affecting 3,500 to 4,000 flights daily.
On Thursday, the FAA formalized a list of affected airports and clarified the reductions would begin at 4% and slowly ramp up to 10% by Nov. 14. The reductions began Friday morning with more than 700 flight cancellations.
These are the airports that are expected to be impacted, including some of the country’s largest airports and major international hubs in Atlanta, Chicago, Dallas, Los Angeles and New York City.
Impacted airports:
- ANC – Anchorage International
- ATL – Hartsfield-Jackson Atlanta International
- BOS – Boston Logan International
- BWI – Baltimore/Washington International
- CLT – Charlotte Douglas International
- CVG – Cincinnati/Northern Kentucky International
- DAL – Dallas Love
- DCA – Ronald Reagan Washington National
- DEN – Denver International
- DFW – Dallas/Fort Worth International
- DTW – Detroit Metropolitan Wayne County
- EWR – Newark Liberty International
- FLL – Fort Lauderdale/Hollywood International
- HNL – Honolulu International
- HOU – Houston Hobby
- IAD – Washington Dulles International
- IAH – George Bush Houston Intercontinental
- IND – Indianapolis International
- JFK – New York John F. Kennedy International
- LAS – Las Vegas McCarran International
- LAX – Los Angeles International
- LGA – New York LaGuardia
- MCO – Orlando International
- MDW – Chicago Midway
- MEM – Memphis International
- MIA – Miami International
- MSP – Minneapolis/St. Paul International
- OAK – Oakland International
- ONT – Ontario International
- ORD – Chicago O’Hare International
- PDX – Portland International
- PHL – Philadelphia International
- PHX – Phoenix Sky Harbor International
- SAN – San Diego International
- SDF – Louisville International
- SEA – Seattle/Tacoma International
- SFO – San Francisco International
- SLC – Salt Lake City International
- TEB – Teterboro
- TPA – Tampa International
(The airport in Las Vegas was renamed the Harry Reid International Airport in 2021.)
On Wednesday, Duffy said the reduction was a “proactive” measure because of the delays and cancellations already occurring due to the shutdown. Air traffic controllers, who are considered essential employees required to work during a shutdown, have missed paychecks, and the FAA has said the closure has also raised concerns about already thin staffing among controllers.
Duffy said he expects more cancellations as a result of the reduction, which has no set end time.
“We thought 10% was the right number based on the pressure we were seeing,” Duffy added.
Earlier this week, Duffy told CNBC’s “Squawk Box” that he could “shut the whole airspace down” if the shutdown drags on.
FAA Administrator Bryan Bedford said Wednesday that additional measures may be implemented after the reduction, which he said he has never seen before in his time in the industry. The officials said they were planning to meet with airlines to discuss which flights would be cut.
Airline response
In a Wednesday memo to United Airlines employees, CEO Scott Kirby said the carrier will not be reducing long-haul international flying and hub-to-hub flying, instead reducing regional and domestic flights that do not fly between hubs.
The airline also offered all customers refunds even if their flights are not impacted. Kirby said that included “non-refundable tickets and those customers with basic economy tickets.”
On Thursday afternoon, the airline preemptively said it was going to cancel 4% of its flights from Friday through Sunday.
In a statement, Delta Air Lines said it expects to operate the “vast majority” of its flights as scheduled and will offer changes, cancellations or refunds for customers’ flights during the impacted period. Delta also said that would include basic economy fares, without penalty.
The airline added on Thursday afternoon that it will cancel flights a day in advance to allow customers enough time.
Frontier Airlines CEO Barry Biffle said he highly recommends travelers flying Friday or in the next 10 days book a backup ticket on another carrier as the flight reductions begin to avoid getting stranded due to cancellations.
“I’m sorry this is happening. Hopefully the shutdown is over soon,” Biffle wrote on LinkedIn. “Just giving everyone practical travel advice.”
American Airlines said it expects that the “vast majority of customers’ travel will proceed as planned,” adding that the carrier will reach out to travelers proactively as schedule changes occur.
The airline also said that it will offer immediate rebooking options for all impacted travelers and that customers whose flights are canceled for any reason will be able to change their flight or request a refund without penalty. As of Thursday morning, the airline was still awaiting clarifying information from the FAA about which of its flights will be impacted.
Southwest Airlines also released a statement saying that the majority of its flights will not be impacted and that its international flights should operate as usual. The airline said it will “proactively communicate well in advance and will offer flexibility in travel plans.”
The Association of Flight Attendants, representing 55,000 flight attendants at 20 airlines, released a statement Wednesday urging Congress to end the shutdown so air traffic controllers and Transportation Security Administration workers can get paid.
“The false narrative that this shutdown is a choice of either paying federal workers or protecting affordable healthcare is outrageous when both crises were manufactured by the exact people who can fix it,” the statement read.
What travelers need to know
Passengers check in at an American Airlines’ counter at Ronald Reagan Washington National Airport in Arlington, Virginia, the United States, on Oct. 10, 2025.
Li Rui | Xinhua News Agency | Getty Images
Experts recommend consumers who are set to travel in the next week stay on top of flight cancellations and delays through the websites and apps.
Nick Ewen, senior editorial director at travel site The Points Guy, said flexibility “is going to be key” as travelers rush to rebook, adding it’s important to download each airline’s mobile app and enable all notifications.
“A lot of the times, you have to actually enable notifications on individual trips or in your account to text you if there are changes or disruptions,” Ewen told CNBC.
He recommended anyone with nonurgent travel reschedule their trips, though that likely only applies to a small number of travelers, and consider choosing other forms of transportation instead. For essential trips, Ewen said passengers should be prepared for long wait times, use self-service rebooking tools, and be aware of the fact that many other people will also be rebooking and scrambling for limited seats.
Ewen said he has been covering the industry for many years, and the last time he and his colleagues saw a major, national disruption in air travel like this was 9/11.
“The biggest thing is a lot of kindness goes a long way,” he said. “So if you’re at an airport and you find out that your flight is canceled, I promise you screaming at that airline employee is not going to get you rebooked any faster — in fact, it’s probably going to make them less likely to be willing to help you. So recognize that everyone is in this together.”
AAA spokesperson Aixa Diaz said the company recommends arriving at the airport extra early to avoid long lines and avoid checking in a bag if possible in case flights get canceled.
“Ultimately, there’s a lot that’s out of travelers’ control — so control what you can, and be as flexible as possible,” Diaz said.
Travel insurance
Travel insurance can reimburse consumers for certain costs and inconveniences incurred from a trip disruption, like flight cancellations, delays, lost luggage, or unforeseen costs for lodging and meals.
Consumers have been buying travel insurance at an elevated rate amid the government shutdown, but travel and insurance experts warn that such policies don’t offer blanket protection for shutdown-related travel snafus, and a lot depends on the fine print.
For example, a policyholder generally can’t get insurance benefits if they choose to cancel their travel plans to avoid any headaches. Cancel-for-any-reason coverage is an exception, though it also comes with its own caveats.
Whether or not a policyholder gets compensated may come down to the rationale an airline provides for a delayed or canceled flight.
Many insurers only pay benefits if a delay or cancellation is attributable to a “common carrier” disruption like a mechanical failure, travel experts said.
“Airlines typically won’t cite causes other than operational terms like ‘mechanical issues’ or general delays, cancellations, or lost belongings, even during a government shutdown,” Lauren McCormick, a spokesperson for Squaremouth, an online platform for comparing travel insurance policies, wrote in a recent blog post. “So, these are generally still covered under most comprehensive travel insurance plans.”
— CNBC’s Phil LeBeau contributed to this report.
While the pre-Christmas shopping frenzy peaks, 25 per cent of festive shoppers will delay buying some gifts until after Christmas Day, a survey has revealed.
This trend is largely due to the cost of living crisis, with many seeking savings in post-Christmas sales.
Two-fifths (41 per cent) of those surveyed for cashback website Rakuten see sales as a good way to economise.
Additionally, a third (32 per cent) believe money saved by delaying purchases justifies changing the tradition of opening gifts on Christmas Day. Men, the research notes, are more likely than women to postpone gift buying until after the festive period.
The survey indicated that shoppers expect to spend £163 on average in the Boxing Day sales.
The research also found that, apart from the financial savings, there were other advantages to leaving some gift-buying until after Christmas Day.
Some people hold off to avoid pre-Christmas stress and crowds, and some believe that buying gifts after Christmas Day helps to extend the festive atmosphere into the new year.
The survey also indicated that many gift recipients will not mind waiting until after 25 December to find something under the Christmas tree with their name on it.
For more than half (52 per cent) of those who celebrate Christmas, receiving a gift after Christmas Day is not a problem, according to the survey of 2,000 people across the UK carried out by OnePoll in October.
Rakuten’s savings expert, Bola Sol, said: “With prices slashed and discounts galore, waiting a few extra days can mean big savings. It’s a great way to stretch the present budget, especially for those who aren’t too fussy about receiving or giving gifts on Christmas Day.”
She suggested setting a Boxing Day sales budget, comparing prices, and combining gift budgets with friends and family members to give a more meaningful gift without overspending.
Business
What are the ‘hidden charges’ on forex transactions: RBI issues draft rules on charges; what could change? – The Times of India
The Reserve Bank of India (RBI) has issued a draft proposal aimed at making cross-border payments more transparent and consumer-friendly. With this, the bank aims to address long-standing complaints about hidden charges and unclear pricing in foreign exchange transactions.A large number of individuals face difficulties while making overseas payments for education, living expenses, travel, investments or remittances, mainly due to complex processes and high service costs.In many cases, customers only discover the true cost of a transaction after it has been completed. This includes charges such as fees, margins and intermediary costs that are either bundled into exchange rates or deducted later without a clear explanation.To address these issues, the RBI has proposed new regulations that would require banks and other authorised dealers to disclose the total cost of foreign exchange transactions upfront, before a customer agrees to the deal. The move is intended to help customers compare charges across service providers and make more informed decisions, according to ET.
What the RBI has proposed
Under the draft circular, authorised dealers such as commercial banks and certain financial institutions will be required to clearly communicate all transaction-related costs in advance. This includes commonly used foreign exchange transactions such as:
- Foreign exchange cash (T+0): Same-day currency exchange
- Tom (T+1): Settlement on the next business day
- Spot (T+2): Settlement within two business days
The disclosure requirement will cover both foreign exchange transactions and related derivative contracts used by retail customers.The RBI observed that a similar step was taken in January 2024, when authorised dealers were mandated to disclose mid-market rates for forex and foreign currency interest rate derivatives. The new proposal builds on a similar framework by extending transparency to the full cost structure of transactions.What counts as “total transaction cost”Before entering into a foreign exchange transaction, authorised dealers will now have to provide a complete breakdown of costs. According to Hemal Shah, Partner and Leader – Treasury and Commodity Advisory, Risk Consulting, EY India, this would include:
- The foreign exchange rate applied
- Currency conversion charges
- Sending or outward remittance fees
- Receiving fees, if applicable
- Charges levied by intermediary or correspondent banks
- Any other fee linked to executing the transaction
Importantly, these details must not only be shared upfront but also included in the final deal confirmation, allowing customers to verify what they were quoted against what they were ultimately charged.Once finalised, the instructions will be applicable within three months from the date of issuance.
Problems faced by retail users
Retail customers have long flagged that international transfers feel far more expensive and opaque than domestic payments. Often, customers are shown only an exchange rate, while additional costs such as remittance fees, FX margins, SWIFT charges and intermediary bank deductions are revealed only later.Experts point out that banks frequently embed margins and multiple fees into a single quoted rate, making it difficult for customers to understand the actual pricing. Charges on the recipient side, such as correspondent bank fees or instances where beneficiaries bear costs instead of remitters, have also added to confusion, particularly for exporters.Another major concern is the lack of transparency around correspondent bank fees, which can vary significantly depending on routing and overseas banking arrangements. While banks often describe these as outside their control, the RBI has flagged this as a key area where disclosure standards need improvement.
How customers will benefit
By mandating upfront disclosure, the RBI aims to give retail users a clearer picture of the true cost of cross-border transactions. This will help customers better understand pricing mechanisms, dealer margins, and the differences between various forex products.“Enhanced visibility on the hidden charges allows retail users to make better decisions on the pricing offered by ADs,” said Shah.Vijay Mani, Partner and Banking and Capital Markets Leader at Deloitte India, added that the move can significantly improve trust and comparability, provided the disclosures are implemented in a clear and customer-friendly manner.The RBI has invited public comments on the draft circular. Feedback can be submitted until January 9, 2026, after which the central bank will review responses before issuing final guidelines.
Who do the rules apply to?
Authorised Dealers under RBI regulations include Authorised Dealer Category-I banks and Standalone Primary Dealers authorised under Category-III to conduct foreign exchange transactions.Customers are classified as retail or non-retail for the purpose of these rules. Non-retail users include large financial institutions, NBFCs, insurance companies, mutual funds, alternative investment funds and Indian entities with a net worth of Rs 500 crore or more or a turnover of Rs 1,000 crore or more. Non-residents, other than individuals, are also treated as non-retail users.Any customer who does not fall into these categories is considered a retail user and will directly benefit from the proposed transparency measures.
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