Thanksgiving Travel Warning: FAA Orders 10% Flight Cuts as U.S. Shutdown Hits Day 37; Allegiant Air Sees Risks If Stalemate Reaches Holiday
6 November 2025
3 mins read

Thanksgiving Travel Warning: FAA Orders 10% Flight Cuts as U.S. Shutdown Hits Day 37; Allegiant Air Sees Risks If Stalemate Reaches Holiday

  • The FAA will reduce flight capacity by 10% at 40 high‑volume U.S. markets starting Friday to preserve safety during the ongoing federal government shutdown. AP News
  • The cuts are set to ramp from ~4% Friday to 10% next week; international flights are initially expected to be exempt, according to industry briefings. Reuters
  • The shutdown has reached Day 37, the longest on record, with no final deal in sight. AP News
  • Allegiant Air says it hasn’t seen a demand hit yet but warns that a prolonged shutdown into Thanksgiving would be a “huge problem” for the industry. Las Vegas Review-Journal

FAA’s extraordinary move, explained

With air traffic controllers working unpaid and staffing strains mounting, the Federal Aviation Administration said it will cut scheduled flight volumes by 10% across 40 of the busiest U.S. markets beginning Friday. The agency frames the reductions as a safety measure as the funding impasse drags into a second month. Analysts estimate the move could remove up to 1,800 flights and 268,000 seats on the heaviest days. AP News

Industry sources say the reductions will phase in—about 4% Friday, then 5% Saturday, 6% Sunday, climbing to 10% next week, allowing carriers to rework schedules. International flights are initially expected to be exempt. Reuters

Where the shutdown stands today

After weeks of stop‑start talks, the federal shutdown reached Day 37 on Thursday, cementing its place as the longest in U.S. history. That deepens pressure on aviation operations and heightens the risk of ripple delays as the holiday travel season nears. AP News

Allegiant: “No meaningful impact—yet,” but a Thanksgiving stretch would be “huge” problem

On its third‑quarter call, Allegiant Travel Co. executives said the carrier—known for flying from smaller, underserved airports—hasn’t seen “anything meaningful” in bookings from the shutdown so far. But President Robert “BJ” Neal cautioned that if the stalemate reaches Thanksgiving, the impact could become significant for the entire industry, urging lawmakers to resolve the impasse. Las Vegas Review-Journal

Allegiant underlined solid operating execution even in its seasonally weakest quarter: ~33,000 departures, 4.6 million passengers, and a 99.9% controllable completion factor. Management reiterated that holiday demand is “shaping up nicely” and said it now expects a double‑digit Q4 operating margin. The airline also reaffirmed plans to have 16 Boeing 737s in service by year‑end 2025 after transitioning part of its fleet, and noted it closed the $200 million sale of Sunseeker Resort in September. PR Newswire

Separately, Allegiant named longtime finance chief Robert “BJ” Neal as President this week, a move the company says will help steer execution as it integrates the 737 fleet and expands ancillary offerings. Allegiantair

What it could mean for Las Vegas and other hubs

Officials at Harry Reid International Airport say operations remain normal for now, but caution that delays anywhere in the national system can quickly cascade to Las Vegas. If LAS is among the 40 markets subject to FAA cuts, a 10% reduction could shave roughly 170 daily flights from current averages, local analyses suggest. Channel 13 Las Vegas News KTNV

In the Washington, D.C. area, local outlets report all three airports—BWI, DCA, and IAD—are expected to be affected once cuts begin, underscoring the broad reach of the FAA’s plan. WTOP News

The broader airline picture

Airline leaders across the industry have publicly pressed for an end to the shutdown, warning of mounting operational stress on controllers and the economy. United Airlines CEO Scott Kirby recently highlighted safety and staffing pressures as risks if the funding lapse persists. Business Travel News

International pickup of today’s Allegiant updates

Coverage of Allegiant’s stance on the shutdown—and the FAA’s planned flight cuts—extended beyond U.S. outlets today. El‑Balad and Emegypt both ran updates summarizing Allegiant’s earnings‑call comments about potential Thanksgiving impacts if the shutdown persists, reflecting global interest ahead of the U.S. holiday rush. El Balad


What travelers should do now

  • Watch for schedule changes: Carriers will begin filing revised schedules as the FAA reductions phase in. Check your airline’s app and sign up for flight alerts. (FAA reduction timing reported today.) AP News
  • Build buffer time: Even if your airport isn’t on the FAA list, ripple effects from constrained hubs can spread. Consider earlier departures and longer connections. The Nevada Independent
  • Know your options: If your flight is changed or canceled, airlines typically offer free rebooking on comparable itineraries.
  • Stay tuned for the airport list: The FAA has not yet named all 40 markets; it has been coordinating with airlines and is expected to detail the list before cuts take effect. AP News

By the numbers (latest)

  • Shutdown day count: 37 (longest on record). AP News
  • Planned FAA reductions: 10% across 40 high‑volume markets (ramping from ~4% to 10%). AP News
  • Potential impact: up to 1,800 flights and 268,000 seats removed on peak days. AP News
  • Allegiant Q3 snapshots: ~33,000 departures, 4.6M passengers, 99.9% completion; 16 Boeing 737s targeted in service by year‑end; Sunseeker sale $200M. PR Newswire

Stock Market Today

  • TSX climbs as RSI nears overbought territory; 44 stocks hit 52-week highs
    January 12, 2026, 8:50 AM EST. Toronto stocks rose with the S&P/TSX Composite index up 2.4% for the week and 2.9% in 2026. The RSI (Relative Strength Index) sits at 69, near the 70 threshold that marks overbought conditions, while no constituents sit below 30 (the oversold signal). Some 37 members trade above 70, pointing to potential pullbacks. The five most overbought shares are Aritzia Inc., Methanex Corp., Primaris REIT, Granite REIT and Lundin Mining Corp. A broad rally left 44 names hitting new 52-week highs, ranked by market capitalization. The top five making new highs were Agnico Eagle Mines Ltd., Barrick Mining Corp., Manulife Financial Corp., Wheaton Precious Metals Corp. and Suncor Energy Inc.
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