US government shutdown could cost travel sector $1 billion per week, disrupt holiday travel (updated)
20/12/2024 21:04
(Adds more details, comments from Fitch, background)
By David Shepardson
WASHINGTON, Dec 20 (Reuters) - A partial government
shutdown could cost the U.S. travel industry $1 billion per week
and lead to widespread disruptions for travelers, a trade group
representing airlines, hotels and other travel companies said on
Friday.
"A prolonged government shutdown threatens holiday travel
disruptions that Americans won’t tolerate," said U.S. Travel
Association CEO Geoff Freeman. On Thursday, the head of the
Transportation Security Administration warned an extended
partial U.S. government shutdown could lead to longer wait times
at airports.
TSA expects to screen a record 40 million passengers over
the holidays after setting records over the Thanksgiving
holiday.
Fitch Ratings said on Friday that a shutdown "could also
cause non-material operational disruptions at airports with
non-essential FAA and TSA worker furloughed."
TSA, which handles airport security screening, said about
59,000 of its 62,000 employees are considered essential and
would continue working without pay in the event of a shutdown
that would begin on Saturday unless the government reaches a
funding deal.
Air traffic controllers and TSA officers are among the
government workers who would be required to keep working but
would not be paid.
"It’s hard to see how anyone in Congress wins if they force
TSA workers, air traffic controllers, and other essential
employees to work without pay during one of the busiest travel
periods of the year," said Freeman of the travel association
whose members include United Airlines UAL.O , Marriott AAL.O ,
American Airlines AAL.O and Hertz AAL.O HTZ.O
The group said a survey found 60% of Americans would
consider altering their travel plans if a government shutdown
occurs, with many choosing to cancel or avoid flights
altogether.
Without a deal, the Federal Aviation Administration
estimated it would have to furlough more than 17,000 employees
and halt training of air traffic controllers.
In 2019, during a 35-day shutdown, the number of
absences by controllers and TSA officers rose as workers missed
paychecks, extending checkpoint wait times at some airports. The
FAA was forced to slow air traffic in New York, putting pressure
on lawmakers to finally end the standoff.
(Reporting by David Shepardson; editing by Diane Craft and
David Gregorio)
((David.Shepardson@thomsonreuters.com; 2028988324;))