U.S. Airlines Take Stock Market Hit As Government Shutdown Reaches 32 Days

The government shutdown went into his second month (32nd day) on January 22, and the stock market fell over 300 points. Airline stocks like American, United, Delta, and Southwest were big losers. United dropped 2.63%, while Southwest fell 2%. Delta fell 2.1% to 47.10, near its year low of 45.08. And American fell 3.62% to 32.74, near a 52-week low of 28.81While the market decline and the continuing government shutdown may or may not be related, what is clear is that the shutdown is causing painful, if not necessarily permanent, damage. Issues with the TSA are only the tip of the iceberg.For example, Southwest had planned to begin flights from California (San Diego, Oakland, Sacramento, and San Jose) to Hawaii by early 2019. The highly-anticipated service has been pushed back, however, because the aviation inspectors who would certify Southwest 737 MAX aircraft for ETOPs (extended twin-engine operation) service for the long over-water flight have been furloughed due to the government shutdown. Similarly, Delta is hot to get its new Airbus A220 jets into operation. The A220, co-manufactured by Embraer and Airbus, hits a sweet spot for many airlines. It provides a fuel-efficient solution in the 100-passenger space, where a Boeing 737 would harder to fill and more expensive to operate. But Delta can’t put its A220s into service (CNBC reported that seven aircraft are affected) until FAA inspectors get back to work. The furloughs of inspectors also affect aircraft that are in repair stations, which need safety sign-offs to return to their fleets.