As the United States shutdown reaches two weeks, United Airlines CEO Scott Kirby warns that it could hurt airline bookings if it continues.
Despite the shutdown, essential employees like Transportation Security Administration officers and air traffic controllers are required to work without pay.
Recently, more than 13,000 air traffic controllers and 50,000 Transportation Security Administration officers have received partial paychecks but will not get paid later this month if the standoff continues.
While Kirby said the shutdown has yet to impact the carrier’s business, he said if it goes on, it could impact bookings.
“I think that at least for the first couple of weeks, people thought it was going to get resolved, so they just kind of continued business as usual,” he said.
“But as time goes on, as people read headlines and say, ‘it’s not going to get resolved soon.’
“People start to lose confidence in the government and the government’s ability to resolve this.”
Last week, Delta Airlines CEO Ed Bastian made a similar warning about how a prolonged shutdown could impact air travel, but made it clear that the airline’s operation hadn’t been affected yet.
This comes after an increased number of flights were delayed last week due to staffing shortages caused by the shutdown, with an uptick in sick calls for air traffic controllers.
United shares were down 6% in afternoon trade due to concerns about the shutdown, despite delivering an upbeat earnings outlook with stronger-than-expected results.
