Major US airlines are counting the financial cost of the recent federal government shutdown, with Delta Air Lines projecting a significant hit to its fourth-quarter earnings. The disruption, which led to widespread flight reductions, has impacted both passenger bookings and operational stability.
Financial Toll on Major Carriers
On Wednesday, December 3, 2025, Delta Air Lines announced it expects the shutdown to reduce its fourth-quarter profit by approximately US$200 million. CEO Ed Bastian informed investors that this would translate to a decrease of about 25 cents per share in earnings. The Atlanta-based airline attributed the loss directly to the 43-day government closure.
Similarly, Alaska Air Group, the parent company of Alaska Airlines and Hawaiian Airlines, reported substantial losses. The shutdown is expected to cut its adjusted earnings by 15 cents per share for the same quarter. The company revealed it was forced to cancel 600 flights due to government-mandated air traffic reductions, disrupting travel plans for roughly 40,000 customers.
Operational Chaos and Recovery
The shutdown, which ended on November 12, 2025, holds the record as the longest in US history. Its impact on air travel was severe. In early November, the Federal Aviation Administration (FAA) ordered a reduction in flights at 40 of the nation's busiest airports. This drastic measure was necessitated by a critical shortage of air-traffic controllers during the funding lapse.
Delta experienced a direct hit during the 10-day period of active flight restrictions. Bastian stated that the airline's bookings dropped between five and ten percent. The decline was particularly noticeable in business travel, while refund requests surged. Alaska Air Group reported that its revenue turned sharply negative during the chaos and has not yet returned to pre-shutdown trends.
Path to Normalization
Despite the sharp downturn, Delta's CEO offered a note of optimism regarding the recovery. Bastian indicated that the carrier has rebounded quickly since the shutdown was lifted. Booking growth has reportedly returned to the levels previously expected, and demand for air travel looks strong heading into the next year.
The situation underscores the vulnerability of the aviation sector to political gridlock. While Delta shows signs of a rapid recovery, Alaska's ongoing challenges highlight that the financial and operational aftershocks of the 43-day disruption may linger for some carriers well into the new year.
