Business
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.
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 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.
Business
Market recap: 6 of top-10 most-valued firms add Rs 74,111 crore; Reliance biggest winner
The combined market valuation of six of India’s top-10 most valued companies rose by Rs 74,111.57 crore last week, with Reliance Industries emerging as the biggest gainer. The rally came during a volatile trading week in which the BSE Sensex advanced 177.36 points, or 0.23%.According to news agency ANI, Reliance Industries added Rs 24,696.89 crore to its valuation, taking its total market capitalisation to Rs 18,33,117.70 crore.Tata Consultancy Services saw its valuation jump by Rs 19,338.68 crore to Rs 8,38,401.33 crore, while ICICI Bank added Rs 14,515.93 crore to reach a market capitalisation of Rs 9,06,901.32 crore.The valuation of Life Insurance Corporation of India climbed Rs 9,076.37 crore to Rs 5,14,443.69 crore.Meanwhile, Bajaj Finance gained Rs 3,797.83 crore, taking its valuation to Rs 5,70,515.57 crore, while Larsen & Toubro added Rs 2,685.87 crore to Rs 5,40,228.21 crore.
Airtel, HUL among laggards
On the losing side, Bharti Airtel witnessed the sharpest erosion in market value, losing Rs 20,229.67 crore to settle at Rs 11,40,295.49 crore.The market valuation of Hindustan Unilever declined by Rs 16,212.18 crore to Rs 5,17,380 crore, while State Bank of India lost Rs 12,784.4 crore in valuation to Rs 8,76,077.92 crore.HDFC Bank also saw its market capitalisation dip by Rs 2,094.35 crore to Rs 11,79,974.90 crore.Reliance Industries retained its position as India’s most valued company, followed by HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, TCS, Bajaj Finance, Larsen & Toubro, Hindustan Unilever and LIC.
Markets end volatile week with modest gains
Ajit Mishra, SVP, research at Religare Broking Ltd, said markets ended the week with marginal gains amid a “highly volatile and range-bound trading environment”.“Benchmark indices witnessed sharp intraday swings throughout the week, driven by persistent rupee weakness, mixed global cues, sectoral rotation, and continued uncertainty around inflation and interest rates,” he said, as quoted by ANI.Benchmark indices recovered on Friday, with the Sensex closing 231.99 points higher at 75,415.35 and the NSE Nifty rising 64.60 points to settle at 23,719.30.Analysts cited optimism surrounding possible progress in US-Iran peace negotiations and easing Middle East tensions as factors supporting market sentiment.Vinod Nair, head of research at Geojit Investments, was quoted by news agency PTI as saying that domestic markets traded with a “mild positive bias” due to buying at lower levels and constructive global cues.“Globally, the AI investment theme remained the primary driver, while domestically, financial stocks led the gains,” he said.Brent crude prices climbed 2.3% to $104.7 per barrel, while foreign institutional investors (FIIs) sold equities worth Rs 1,891.21 crore in the previous session.
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Red tape, not bad luck, hits capital | The Express Tribune
LAHORE:
Imagine a country sitting at the crossroads of South Asia and Central Asia, with a population of 250 million, abundant natural resources, and a GDP exceeding $450 billion, yet struggling to convince even its own businesspeople to invest at home.
That is Pakistan’s continued uncomfortable reality in 2026, and the way things are going, the business community believes that even after elevating higher, in the past one year due to perfect diplomacy, the government needs to take strict action against those civil servants and state officials, who still try to slow the pace of overseas and local investment as well as development work, which has jeopardised the growth of the country.
“Foreign direct investment (FDI) in Pakistan fell 31% during the first 10 months of financial year 2025-26, with total inflows coming in at $1.409 billion against $2.035 billion during the same period a year earlier,” said Mian Shafqat Ali, Founder of the Pakistan Industrial and Traders Association Front. He raised alarm over what he calls a deepening investment crisis, warning that both local and foreign investment has dipped to one of its lowest levels in recent memory.
He added that the root cause of this decline is not a lack of opportunity, but a system that actively discourages investors at every step. “The real obstacle in the way of investment is the layers upon layers of bureaucratic hurdles. Without removing these barriers, the dream of increasing investment cannot be realised.”
He noted that investors, both domestic and foreign, are deeply sensitive to the environment they operate in, and Pakistan’s current legal and regulatory framework, unpredictable energy policies, fluctuating exchange rates, and ad hoc government decisions have created an atmosphere of uncertainty that keeps capital away.
The business community by and large thinks that once the US-Israel-Iran conflict is settled fully, Pakistan can have better opportunities; however they simultaneously say that to grab those opportunities, “we need to settle our systems, which are dominated by anti-investment and anti-business culture”.
There are systems, which welcome and protect overseas as well as local investment; those societies belong to the first world or second world; “unfortunately here in Pakistan we are still unable to manage the smooth flow of Chinese investments, whom we call ‘iron brothers’,” said Bilal Hanif, a Lahore-based businessman.
“We keep building new institutions and launching new investment windows, but nothing changes on the ground because the real problem is structural. A foreign investor does not just look at your pitch; he looks at your court system, your tax regime, and whether rules will be the same two years from now. On all these counts, we are falling short,” he said.
Pakistan has averaged barely $2 billion in annual FDI over the past 26 years; a figure that expert bodies like the Pakistan Business Council say should be at least $12 billion per year, or roughly 3% of GDP, to meet basic development benchmarks. Meanwhile, regional competitors such as India, Vietnam, Indonesia, and even smaller economies like Bangladesh have consistently attracted far greater inflows, benefiting from predictable regulations, stronger investor protection, and long-term policy continuity.
Mian Shafqat Ali was clear that the failure does not rest with any single institution. He said the problem is not the fault of the Special Investment Facilitation Council (SIFC) or any other body, but rather the deeply entrenched systems that make doing business in Pakistan unnecessarily complicated.
“Until policymakers are willing to make difficult structural and political decisions, investment will remain weak, no matter how many new institutions are created,” he warned.
What investors consistently ask for is not complicated; it is political stability, simple regulations, and confidence that policies of today will not be reversed tomorrow. Pakistan, unfortunately, has struggled to offer any of these in a reliable manner. Frequent political disruptions, leadership changes, and policy discontinuity have created uncertainty that discourages long-term capital, and the capital does not avoid Pakistan because of a lack of opportunity, it avoids uncertainty.
“Government should move beyond announcements and focus on real structural reforms, overhauling the regulatory framework, simplifying business registration processes, ensuring energy availability at competitive rates and most importantly, providing a stable and consistent policy environment as without fixing the foundation, everything else is meaningless,” Ali added.
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