US Government Shutdown Causes $4B Travel Losses, Threatens Holiday Chaos

The ongoing U.S. government shutdown, now in its second month, is severely disrupting the travel industry ahead of the critical Thanksgiving holiday. Over 500 travel companies and groups, including major players like MGM Resorts and Hilton, have warned Congress that the shutdown has already cost the travel economy $4 billion and threatens to cause widespread cancellations and economic damage if unresolved. Staffing shortages among federal aviation workers, who are working without pay, have led to longer airport lines, flight delays, cancellations, and operational strain at key travel hubs like Las Vegas, Atlantic City, and San Diego. Industry leaders report that over half of American travelers may reduce or scrap holiday trips due to these disruptions, risking billions in lost revenue and impacting local economies dependent on holiday travel. Transportation officials have cautioned that flight delays could worsen or flights may be grounded if safety is compromised, emphasizing the urgent need for legislative action to end the shutdown and stabilize travel plans. The travel sector is urging lawmakers to pass a clear spending bill promptly to restore confidence and prevent a Thanksgiving travel crisis.