When American Airlines canceled over 1,200 flights on Wednesday, November 12, 2025, it wasn’t due to weather, mechanical issues, or staffing shortages at the airline itself. It was because the Federal Aviation Administration couldn’t pay its workers. Air traffic controllers in Chicago, New York, and Los Angeles hadn’t been paid since Friday, November 7 — and without them, the skies couldn’t safely open. The result? A cascading collapse of U.S. air travel, affecting 1.2 million passengers across all 50 states. This wasn’t just a delay. It was the first full-scale FAA-induced grounding since 2013 — and this time, it was worse.
Why the FAA Shutdown Hit Harder Than Ever
The trigger? The expiration of the Continuing Appropriations Resolution, 2026 at 12:01 a.m. EDT on November 7. Overnight, $2.3 billion in annual funding for the FAA vanished. That meant 45,218 federal aviation professionals — including 14,322 air traffic controllers, 8,741 safety inspectors, and over 22,000 technicians — stopped receiving paychecks. No pay. No work. No exceptions. The FAA didn’t have the legal authority to operate without appropriated funds. And so, on Saturday, November 8, it issued an emergency order: slash flight capacity by 30–40%.
Here’s the twist: unlike the 2013 shutdown, when controllers still showed up out of duty, this time, many didn’t. The workforce — stretched thin by years of underfunding and burnout — simply couldn’t afford to show up unpaid. At the Chicago Air Route Traffic Control Center (ZAU), staffing dropped to 42%. At New York TRACON (N90), it was 38%. National airspace capacity? Down to 65% of normal. The system didn’t break — it groaned.
Airlines Respond — With Different Rules
Each major carrier reacted differently. American Airlines issued a blunt statement on November 12: cancellations were "FAA-required" due to unpaid federal personnel. They didn’t offer alternatives. Just refunds.
Southwest Airlines Co. went further. Their November 2025 Help Center update told passengers: if your flight wasn’t canceled but you still didn’t want to fly between November 7 and 13, you could get a refund — even if you didn’t technically qualify under normal policy. That’s unusual. Most airlines only refund if the flight is canceled. Southwest didn’t care. They were trying to manage chaos.
And then there was United Airlines, Inc.. They extended their refund window to November 16 — three days past Southwest’s cutoff. Why? No one explained. Analysts speculate United’s longer-haul routes, more complex scheduling, or heavier reliance on certain FAA facilities (like Denver International Airport (DEN)) made their recovery slower. Or maybe they were hedging bets.
Here’s what all three agreed on: they weren’t liable. Under 14 CFR § 250.9 and § 253.7, airlines are exempt from compensation during "extraordinary circumstances" — and a government shutdown qualifies. So while passengers were stranded, the airlines weren’t paying for hotel rooms, meals, or lost wages. Just refunds.
Who’s Really Paying the Price?
It’s easy to blame the airlines. But the real victims? The controllers.
Imagine working 12-hour shifts, guiding 400-pound jets through crowded skies, knowing your paycheck won’t clear this week. That’s what 14,322 air traffic controllers faced. Many are single parents. Some have mortgages. One controller in Atlanta told a local reporter she’d sold her car to cover rent. Another, in San Francisco, started volunteering at a food bank.
And the ripple effects? Air cargo delays. Medical transport cancellations. Business travelers stranded. Even tourism in Hawaii and Puerto Rico took a hit. The U.S. Department of Transportation estimated the economic cost at $1.8 billion over six days — and that’s just direct losses.
What Happens Next?
The answer lies in Washington. Not in Dallas, Chicago, or Fort Worth. The FAA can’t operate without Congress. And Congress hasn’t passed a funding bill since November 7. The clock is ticking. If the shutdown lasts past November 16 — the date United Airlines used as their refund cutoff — the damage becomes structural. Airlines may start cutting routes permanently. Pilots may leave for foreign carriers. Controllers may retire early.
Meanwhile, the FAA’s Administrator, Michael P. Whitaker, remains silent in public. He’s not on TV. He’s not giving interviews. He’s in a bunker in Washington, D.C., coordinating with the White House and House Transportation Committee, trying to find a compromise before the next wave of cancellations hits.
Why This Matters Beyond the Skies
This isn’t just about flights. It’s about what happens when essential services are treated like optional line items in a budget. Air traffic control is one of the most technically demanding public jobs in America. It requires years of training. It demands 100% reliability. And yet, for 10 days, the entire system teetered because lawmakers couldn’t agree on a budget.
The 2013 shutdown lasted 16 days. We survived. But we didn’t learn. Now, with fewer controllers, more flights, and higher passenger volumes, the margin for error is gone. If this happens again — and it will — the next shutdown could ground the entire system for weeks. Not days.
Frequently Asked Questions
Who is eligible for a refund if my flight was canceled due to the FAA shutdown?
All passengers whose flights were canceled between November 7 and November 16, 2025, are eligible for a full refund — regardless of ticket type. American Airlines and Southwest automatically processed refunds for canceled flights. United extended eligibility to those who purchased tickets by November 4, 2025, even if their flight wasn’t canceled. Passengers should check their airline’s website for automated refunds or file a claim if none was issued.
Why did Southwest allow refunds for flights that weren’t canceled?
Southwest’s policy was an emergency response to extreme volatility. With flight schedules changing hourly due to controller shortages, many passengers found themselves booked on flights that were delayed 12+ hours or rerouted multiple times. To prevent customer backlash and maintain trust, Southwest waived normal rules and offered refunds to anyone who didn’t want to fly — even if their flight technically still operated.
How many air traffic controllers were affected, and what’s their current status?
As of November 8, 2025, 14,322 air traffic controllers were unpaid — part of the 45,218 FAA employees affected. Many showed up for mandatory safety shifts, but others didn’t, citing financial hardship. The FAA confirmed staffing levels at 175 terminal radar facilities were at 55–65% of normal. As of November 17, no back pay had been issued, and morale is at an all-time low. Some controllers have filed for unemployment.
Could this happen again next year?
Absolutely. The FAA’s funding is tied to annual congressional appropriations, and the agency has no reserve fund. Without legislation to create a dedicated, multi-year funding stream — like the one for the TSA — future shutdowns will trigger the same chaos. Experts warn that if Congress doesn’t act, the next shutdown could permanently reduce U.S. air capacity by 15–20% as airlines shift routes overseas.
Did any airlines profit from the shutdown?
No — at least not directly. While some airlines offered "Getaways" packages (like Southwest) to rebook passengers, these were loss-leaders designed to retain goodwill. All three carriers reported significant losses from canceled flights, fuel waste, and compensation payouts. American Airlines estimated a $140 million loss in Q4 2025. United’s stock dropped 7% during the crisis. The real winners? Rental car companies and hotels near major hubs — their bookings surged.
What’s being done to prevent this from happening again?
A bipartisan group of senators introduced the FAA Stability Act on November 14, 2025, which would create a trust fund for air traffic control operations, funded by a small fee on airline tickets. The bill has support from the National Air Traffic Controllers Association and the Air Line Pilots Association. But it’s stalled in the House. Without political will, the system remains vulnerable — one budget deadline away from another grounding.