Connect with us

Business

The government shutdown is over. The air traffic controller shortage is not

Published

on

The government shutdown is over. The air traffic controller shortage is not


Planes line up on the tarmac at LaGuardia Airport on November 10, 2025 in New York City.

Spencer Platt | Getty Images News | Getty Images

The U.S. has been scrambling to hire more air traffic controllers for years. The longest-ever federal government shutdown might have made that even harder.

“We need more of them to come into the profession, and this shutdown is going to make that more difficult for us to accomplish that goal,” Transportation Secretary Sean Duffy said at a press conference at Chicago O’Hare International Airport on Tuesday, a day before Congress signed a bill to fund the federal government through January, ending the shutdown.

Air traffic controllers were required to work without receiving regular paychecks during the shutdown. They were paid in part on Friday, according to people familiar with the matter, but during the shutdown some had taken second jobs to make ends meet, while the lack of regular pay added to their stress, union and government officials and lawmakers have said.

The Federal Aviation Administration reported low-staffing thresholds were hit that that slowed aircraft around the country during the final days of the shutdown. President Donald Trump earlier this week threatened to dock air traffic controllers’ pay if they didn’t go to work. On Friday, staffing levels were relatively strong around the U.S. and disruptions eased.

“It can’t make it look like this is a great job because you’re going to have to deal with this all the time,” said Tim Kiefer, who teaches air traffic management at Embry-Riddle Aeronautical University in Prescott, Ariz.

Kiefer was an air traffic controller for more than two decades before he retired. He said shutdowns or the threat of them were common during his career. “You may see people decide to do other things and say, ‘They didn’t get paid; they were stuck in the middle of a partisan dispute,'” he said.

Read more CNBC airline news

5 million passengers

The shortage of air traffic controllers delayed or canceled thousands flights during the shutdown, affecting the travel plans of more than 5 million people, according to Airlines for America, an industry group that includes American Airlines, United Airlines, Delta Air Lines, Southwest Airlines and others.

But even with partial pay hitting bank accounts, the staffing crisis that regularly upends travel is set to continue.

A government tally last year showed the U.S. was short 3,903 fully certified air traffic controllers of a goal of 14,633. Shortages have been particularly severe at busy facilities like those where controllers guide planes in and out of airports in the congested New York area, adding to flight disruptions and frustrating airline executives and customers.

Meanwhile, retirements picked up in the shutdown, with 15 to 20 people retiring per day, down from a usual rate of four a day, Duffy said Tuesday. Controllers are required to retire at age 56 but can do so earlier with benefits depending on years on the job.

Staffing was already thin before the shutdown began on Oct. 1, and many controllers were working six-day workweeks. By mid-November, as air traffic controllers missed two full paychecks and the shutdown passed the one-month mark, it approached crisis levels.

More than 10% of U.S. departures were canceled last Sunday as bad weather combined with air traffic controller shortfalls at facilities across the country. That was the highest rate since July 19, 2024, during the CrowdStrike outage, which had an outsize impact on Delta Air Lines, leading to thousands of canceled flights and causing travel headaches, according to aviation-data firm Cirium.

Hours after those cancellations spiked on Sunday, the Senate advanced a preliminary deal that led to the vote ending the shutdown this week.

The Federal Aviation Administration in early November ordered airlines to cut 4% of flights from their domestic schedules at 40 major airports, blaming safety risks they found because of an increased strain on air traffic controllers. Cuts were set to ramp up to 10% on Friday, if the shutdown didn’t end. Cancellations, however, improved dramatically during the week and on Friday morning, just 2% of U.S. departures were canceled, according to Cirium.

The FAA brought its mandated cuts down from 6% to 3% starting on Saturday, saying it will monitor system performance throughout the weekend.

The disruptions were similar to those on days with severe storms, but were more widespread across the U.S.

Millions in lost revenue

The last-minute cuts were a headache for the industry, where airlines from top-moneymaker Delta to struggling carrier Spirt had already lowered their outlooks for the year after an oversupply of flights and weaker-than-expected demand earlier this year. Airlines haven’t yet quantified the damage from the shutdown, but Bank of America estimated a $150 million to $200 million operating income hit for big network airlines and less than $100 million for other carriers.

Travelers walk through the terminal at Ronald Reagan Washington National Airport, more than a month into the ongoing U.S. government shutdown, in Arlington, Virginia, U.S., Nov. 11, 2025.

Annabelle Gordon | Reuters

Airline executives, exasperated by the recent disruptions, are now pushing Congress to make sure controllers are paid in the next shutdown.

“In the past week, we saw a crescendo effect as air traffic control staffing shortages led to massive and unpredictable amounts of delays and cancellations across the industry — and that was on top of a series of FAA-mandated schedule reductions,” American Airlines CEO Robert Isom and the carrier’s chief operating officer, David Seymour, said in a note to employees on Thursday, a day after the House approved a short-term funding bill. “While we both have been in this industry for a long time, only a few other events come to mind when we think about this level of disruption.”

It could have been worse. This part of the fall travel demand is relatively light, but Thanksgiving was fast approaching when Congress ended the shutdown, concerning airline executives.

“This shutdown put tremendous strain on our aviation system and caused severe inconvenience for the millions of Americans who depend on it,” United said in a statement. “It should be obvious to everyone that policy debates, however urgent, should never put air travel at risk, and we urge Congress to ensure that the FAA and [Transportation Security Administration’s] funding is protected in the event of any future lapse in federal appropriations.”

‘Political football’

It wasn’t the first time a government closure has put the aviation industry under strain. The 2018-2019 shutdown, then the longest in U.S. history, ended just hours after controller shortages snarled travel in the New York City area.

Some airline executives told CNBC that they were frustrated by this most recent shutdown and last-minute schedule changes, which ended up being greater than anticipated. One, who spoke on the condition of anonymity because he wasn’t authorized to speak to the press, said “we were the pawns” in the shutdown.

Delta CEO: There was a safety risk behind FAA mandated flight reductions

Delta CEO Ed Bastian told CNBC’s “Squawk on the Street” on Wednesday that “the thing we don’t like is being a political football” and said it was unacceptable that air traffic controllers and TSA officers were forced to work without regular paychecks.

The best way to prevent such disruptions is “to ensure those workers, the next time this happens because it will happen, get paid,” Bastian said. “Who could disagree with that?”

The airline industry is urging Congress for legislation that could make use of funds generated by airplane ticket taxes to ensure air traffic controllers and other essential industry workers like airport screeners and Customs agents are paid.

“You don’t hold the American public hostage over a political fight like that,” Airlines for America CEO Chris Sununu, the former governor of New Hampshire, said in a virtual press conference Wednesday, shortly before the House passed the funding bill.

Travelers check their flight status at Dulles International airport as the nation’s air travel system begins to return to normal, as the U.S. government opens back up following the longest shutdown in U.S. history, in Dulles, Virginia, U.S. Nov. 13, 2025.

Evelyn Hockstein | Reuters

Next Wednesday, Sen. Jerry Moran, R-Kan., who chairs the Commerce Subcommittee on Aviation, Space and Innovation, will hold a hearing on the shutdown’s impact on aviation. Moran this year pushed for legislation that would let the FAA use the Airport and Airway Trust Fund, which is funded by taxes on airplane tickets and fuel, to cover expenses if the government shuts down.

“The government shutdown has severely impacted our already fragile aviation industry, and recovering from its effects will take time,” he said in a release this week. “It’s critical that we address the damage done and look at the long-term effects of the shutdown.”

Lawmakers earlier this year approved $12.5 billion to improve air traffic control, though the industry said it needs billions more to modernize the system in the U.S.

The fatal collision of an American Airlines regional jet and an Army Black Hawk helicopter in Washington, D.C., in January also made hiring controllers more urgent, especially at congested facilities.

About a month after the crash, Duffy announced the country’s air traffic controller academy would raise pay for students, and he authorized more universities to teach a similar curriculum to help ease the shortage. The academy in Oklahoma City also stayed open, a different tactic than in the 2018-2019 shutdown.

But those aren’t immediate fixes. It takes years for controllers to be fully trained to work at some of the more complex facilities, and applicants to the academy can be no older than 30.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Netflix grants Warner Bros. Discovery 7-day waiver to reopen deal talks with Paramount Skydance

Published

on

Netflix grants Warner Bros. Discovery 7-day waiver to reopen deal talks with Paramount Skydance


Warner Bros. Discovery on Tuesday said it will reopen deal talks with Paramount Skydance under a seven-day waiver from Netflix to explore “deficiencies” in Paramount’s offer to buy the entirety of WBD.

The legacy media company has a pending transaction with Netflix for its streaming and studio businesses. Paramount launched a hostile tender offer straight to WBD shareholders at $30 per share after losing out to Netflix in a bidding war.

“Netflix has provided WBD a limited waiver under the terms of WBD’s merger agreement with Netflix, permitting WBD to engage in discussions with Paramount Skydance (“PSKY”) (NASDAQ: PSKY) for a seven-day period ending on February 23, 2026 to seek clarity for WBD stockholders and provide PSKY the ability to make its best and final offer,” Warner Bros. Discovery said in a release.

“During this period, WBD will engage with PSKY to discuss the deficiencies that remain unresolved and clarify certain terms of PSKY’s proposed merger agreement,” it said.

Paramount leadership has repeatedly said its $30 per share, all-cash offer is not its “best and final.” Last week the company sweetened its offer with additional “enhancements,” but stopped short of raising the per-share value.

Warner Bros. Discovery said Tuesday that a senior Paramount representative informed a WBD board member that it would pay $31 per share if deal talks were to reopen.

Tune in at 4:30pm ET as Netflix co-CEO Ted Sarandos joins CNBC TV. Watch in real time on CNBC+ or the CNBC Pro stream.

After the limited waiver period, Netflix will retain its matching rights provided by the merger agreement, WBD said.

“Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders,” said WBD CEO David Zaslav in a statement. “Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.”

WBD also on Tuesday announced a special meeting of shareholders will be held on March 20 and said its board continues to unanimously recommend the Netflix deal over Paramount’s offer.

Netflix said in a statement the shareholder meeting date marked an “important milestone for our transaction with WBD.”

“While we are confident that our transaction provides superior value and certainty, we recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics,” Netflix said. “Accordingly, we granted WBD a narrow seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter.”

Shares of Warner Bros. Discovery were up about 3.5% Tuesday. Shares of Paramount were up about 6%.

Raising regulatory concerns

Either proposed purchase of Warner Bros. Discovery assets comes with regulatory questions.

Media industry insiders and lawmakers have questioned whether Netflix’s proposed deal would win approval as it would bring together two of the top streaming services and could result in higher prices for consumers.

Netflix leadership has repeatedly said the company believes it would win regulatory approval for the deal because it would preserve jobs in a challenged media landscape rife with layoffs.

Paramount has sounded the alarm to WBD shareholders, however, and argues its offer is not only better but would more easily garner government support.

On the flipside, Paramount’s offer has raised questions of foreign funding and antitrust considerations in bringing together two large portfolios of pay TV channels and two major film studios.

Paramount’s deal is financed in part by sovereign wealth funds of Saudi Arabia; Abu Dhabi, United Arab Emirates; and Qatar. Paramount has said those entities have agreed to forgo any governance rights.

In its statement on Tuesday, Netflix called out the foreign funding, which it said it expects to come under scrutiny from international regulators, including the Committee on Foreign Investment in the United States (CFIUS). Netflix said it also expects European authorities “to scrutinize the Middle Eastern investors in PSKY’s consortium and to be skeptical of claims that they are purely passive investors.”

Given Europe’s track record of antitrust enforcement, it’s possible regulatory battles for either deal would be won or lost in that market. Of course, the question still looms of how President Donald Trump will view either transaction. Trump recently said he hadn’t been involved in the process so far and didn’t plan to be, though he has reportedly met with executives from each camp.

Netflix’s statement on Tuesday “unsurprisingly points to a number of arguments Netflix believes it has in its favor,” according to an analyst note from Raymond James on Tuesday, “including better prospects for approval, a clearer national security picture, and financial security.”



Source link

Continue Reading

Business

CFTC defends its right to prediction market enforcement as states challenge platforms

Published

on

CFTC defends its right to prediction market enforcement as states challenge platforms


Michael Selig, President Donald Trump’s nominee to serve as Commodity Futures Trading Commission chairman, testifies in a Senate Agriculture Committee hearing on his nomination on Capitol Hill, Nov. 19, 2025.

Jonathan Ernst | Reuters

The Commodity Futures Trading Commission filed an amicus brief in federal court on Tuesday to assert the agency’s right to enforce prediction markets instead of individual states, according to its new chairman, Michael Selig.

Selig argued in a Monday Wall Street Journal op-ed that the CFTC has always had authority over prediction markets and determining whether the event contracts constitute gambling, as critics allege. Selig noted nearly 50 active legal cases against prediction markets and said the CFTC would be stepping in to prevent state encroachment.

“The CFTC will no longer sit idly by while overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by seeking to establish statewide prohibitions on these exciting products,” he wrote.

The move comes as prediction markets like Kalshi and Polymarket face legal challenges in multiple states over event contracts. The platforms allow users to bet on the outcomes of events in pop culture, sports, entertainment and more.

Critics of prediction markets have argued that the offerings amount to little more than gambling, though Kalshi has defended its platform and argued that it abides by federal regulations. Sports betting on the prediction platforms has drawn comparisons to legalized sports betting in the U.S.

In his first public comments as CFTC chairman at the end of January, Selig said he was prepared to draft new, clear rules to govern prediction markets and revisit the agency’s rules on involvement in federal and circuit court cases.

“Where jurisdictional questions are at issue, the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives,” he said at the time.

In his Monday op-ed, Selig said event contracts “serve legitimate economic functions” and operate under CFTC rules as “swaps” rather than gambling. He also posited that trading on event contracts is beneficial for the market and for Americans at large.

“These exchanges aren’t the Wild West, as some critics claim, but self-regulatory organizations that are examined and supervised by experienced CFTC staff,” Selig wrote.

In a Tuesday video posted to X, Selig said his message to those who challenge the CFTC’s authority is clear: “We will see you in court.”

“Today, the CFTC is taking an important step to ensure that these markets have a place here in America and have the integrity and resilience and vibrancy that our derivative markets deserve,” he said.

Selig said the amicus brief would be filed in the Ninth U.S. Circuit Court of Appeals in support of Crypto.com in its dispute with the Nevada Gaming Control Board.

CNBC could not verify that the amicus brief had been filed.

Disclosure: CNBC and Kalshi have a commercial relationship that includes a CNBC minority investment.



Source link

Continue Reading

Business

FTSE 100 hits record high as rate cut hopes rise

Published

on

FTSE 100 hits record high as rate cut hopes rise



Stock prices in London have closed mostly higher, as investors shored up bets on the Bank of England cutting interest rates in March after unemployment increased, while the pound fell.

The FTSE 100 index closed up 82.48 points, 0.8%, at 10,556.17, a new record high. The FTSE 250 ended up 180.35 points, 0.8%, at 23,555.82, and the AIM all-share closed down 4.73 points, 0.6%, at 806.61.

In European equities on Tuesday, the CAC 40 in Paris closed 0.5% higher, while the DAX 40 in Frankfurt ended up 0.8%.

The pound was lower at 1.3531 US dollars on Tuesday afternoon from 1.3629 dollars at the equities close on Monday. The euro stood lower at 1.1830 dollars from 1.1854. Against the yen, the dollar was trading higher at 153.61 yen compared to 153.44.

The unemployment rate came in at 5.2% for the three months ended December, up from 5.1% in the three months ended November. The data was above the FXStreet-cited consensus, which had pencilled in another 5.1% reading.

The ONS estimated that the number of payrolled employees in the UK fell by 121,000, or 0.4%, in the year to December 2025, and decreased by 6,000 on-month.

Pantheon Macroeconomics analyst Rob Wood said: “The rise in unemployment in December and drop in whole-economy average weekly earnings growth will grab the attention, and suggest sharply fading inflation pressures.

“Combined with payrolls still falling slightly the (Monetary Policy Committee) doves have enough to cut rates in March rather than waiting until April, so markets would be right to ramp up the probability of a March cut.”

Deutsche Bank analyst Sanjay Raja said the data “won’t do much to assuage fears that the jobs market remains weak”.

“How high will the jobless rate go? Today’s data suggests there may be a little more room to go before we hit the cyclical peak in the unemployment rate.

“The single month jobless rate already sits at 5.4%. HMRC data suggests more redundancies are ahead. And almost every single survey points to limited hiring plans.

“This will put continued upward pressure on the jobless rate. Put simply, the jobs market remains stuck.”

In response to renewed interest rate cut hopes, Barratt Redrow was up 3.1%. Other property stocks also performed well, with real estate investor Land Securities up 2.4% and fellow housebuilder Persimmon 1.1% higher.

Stocks in New York were mixed, after being closed on Monday for a long weekend. The Dow Jones Industrial Average was marginally higher, the S&P 500 index down 0.1%, and the Nasdaq Composite 0.2% lower.

The yield on the US 10-year Treasury was unchanged from Friday at 4.05%. The yield on the US 30-year Treasury slimmed to 4.68% from 4.70%.

In London, Antofagasta fell 5.7% as it posted revenue and operating profit below analyst expectations.

The London-based miner operating in Chile said pre-tax profit climbed 53% to 3.16 billion US dollars (£2.3 billion) in 2025 from 2.07 billion dollars (£1.51 billion) in 2024.

Revenue increased 30% to 8.62 billion dollars (£6.31 billion) from 6.61 billion dollars (£4.84 billion), albeit a notch below Peel Hunt expectations of 8.68 billion (£6.36 billion). Earnings before interest, tax, depreciation and amortisation grew 52% to a “record” 5.20 billion dollars (£3.81 billion) from 3.43 billion dollars (£2.51 billion).

Operating profit from subsidiaries and share of total results from associates and joint ventures climbed 64% to 3.43 billion dollars (£2.51 billion) in 2025 from 2.08 billion dollars (£1.5 billion) in 2024. It was slightly below market consensus according to Peel Hunt of 3.45 billion dollars (£2.52 billion).

Antofagasta recommended a final dividend of 48 US cents per share for 2025, more than doubled from 23.5 cents a year ago. This brings the total payout for 2025 to 64.6 cents, more than doubled from 31.4 cents.

Peers Endeavour Mining, Anglo American and Fresnillo were also down 4.2%, 2.4% and 2.1% respectively.

On the FTSE 250 index, Raspberry Pi led the way as its shares jumped 36%.

Bloomberg News reported that the gains were driven by a social media post which said AI agents such as OpenClaw could drive demand for the firm’s single-board computers. The post on X attracted 200,000 views.

A spokesperson for Raspberry Pi told Bloomberg that “there’s nothing from the company side beyond what’s already in the public domain”.

SSP Group shares were up 6.6% after UBS raised its rating on the stock to “buy”.

Applied Nutrition was 6.2% higher as it raised its revenue forecast for its current financial year above market expectations, citing a strong first-half performance.

The Merseyside-based wellness brand now sees revenue for the financial year ending July 31 of around GBP140 million, above market consensus of £133.5 million. Revenue will be up 31% from £107.1 million in financial 2025, when it was in turn up 24% from £86.2 million in financial 2024.

The positive results are thanks to the company’s “channel diversification across UK high street health retailers, grocers and discounters” alongside “accelerated demand for a number of…product launches” in the first half of financial 2026, it said.

Among smaller caps, boohoo Group shares fell 6.7% as it confirmed it is preparing to raise £35 million in fresh equity and is in talks with its lenders to create additional liquidity.

The online fast fashion retailer that trades as Debenhams said the equity will be used to pay down its debt and provides the increased financial flexibility to purse its turnaround plan.

It is speaking to its lending syndicate about improved covenant amendments due to its expected reduced leverage.

Boohoo said chief executive Dan Finley and directors Mahmud Kamani and Iain McDonald all will participate in the equity raise at 20 pence per share. Total support for the equity raise from directors and institutional shareholders is in excess of £24 million, boohoo said.

Brent oil was lower at 67.17 dollars a barrel on Tuesday afternoon from 68.42 dollars late on Monday. Gold was down at 4,882.00 dollars an ounce from 4,985.30 dollars.

The biggest risers on the FTSE 100 were Coca-Cola Europacific Partners, up 260.00p at 7,690.00p, Barratt Redrow, up 11.70p at 385.60p, Airtel Africa, up 10.40p at 346.60p, Pearson, up 25.80p at 929.80p and Compass Group, up 58.00p at 2,111.00p.

The biggest fallers on the FTSE 100 were Endeavour Mining, down 176.00p at 4,510.00p, Antofagasta, down 129.00p at 3,617.00p, Weir Group, down 80.00p at 3,430.00p, Anglo American, down 79.00p at 3,499.00p, and Fresnillo, down 80.00p at 3,734.00p.

On Wednesday’s economic calendar, the UK will see CPI and PPI data at 7am GMT, with French CPI later and US building permits and industrial production data to follow in the afternoon.

Wednesday’s corporate calendar has full year results from defence contractor BAE Systems and miner Glencore, among others.

Contributed by Alliance News



Source link

Continue Reading

Trending