DHS Suspends TSA PreCheck and Global Entry Amid Funding Lapse
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: seekingalpha
- Security Check Delays: The Department of Homeland Security announced the suspension of TSA PreCheck and Global Entry starting Sunday at 6 a.m. ET due to funding lapsing on February 14, leading to staff shortages at airport security lines, which may result in longer wait times and decreased customer satisfaction.
- Travel Industry Risks: This measure could exacerbate airport congestion, with airlines warning that the abrupt suspension will create confusion and planning challenges for travelers, potentially dampening near-term demand and affecting airline sentiment if the government shutdown persists.
- Employee Shortage Concerns: While approximately 95% of TSA's employees are required to work during a shutdown, history shows that prolonged funding gaps can lead to staff calling in sick due to unpaid wages, increasing the risk of airport bottlenecks, particularly at major hub airports.
- Market Monitoring Necessity: Investors should monitor the potential throughput disruption risks faced by airlines and airport operators, as widespread delays could negatively impact consumer travel sentiment, and a prolonged shutdown may have greater operational and reputational consequences for the airline industry and related travel stocks.
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise
18 Analyst Rating
18 Buy
0 Hold
0 Sell
Strong Buy
Current: 67.440
Low
77.00
Averages
83.50
High
90.00
Current: 67.440
Low
77.00
Averages
83.50
High
90.00
About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DHS Confirms TSA PreCheck Will Remain Operational Amid Shutdown
- TSA PreCheck Continuation: The DHS confirmed that TSA PreCheck will remain operational despite the government shutdown, which helps mitigate immediate airport congestion risks, thereby ensuring stability in airline operations and passenger volumes.
- Global Entry Suspension: In contrast to TSA PreCheck, the Global Entry program remains suspended, and DHS has halted certain nonessential services, such as courtesy escorts for Congress members, potentially affecting some travelers' experiences.
- Employee Absenteeism Risk: Although approximately 95% of TSA employees are required to work during the shutdown, historical data indicates that prolonged funding gaps can lead to increased absenteeism among unpaid federal workers, which may create bottlenecks and impact security efficiency in the future.
- Market Impact Analysis: While core airport security functions remain intact for now, reducing short-term operational risks for airlines and airport operators, prolonged shutdown conditions could pressure staffing, traveler confidence, and ultimately air traffic volumes, necessitating close monitoring by investors.
See More
DHS Suspends TSA PreCheck and Global Entry Amid Funding Lapse
- Security Check Delays: The Department of Homeland Security announced the suspension of TSA PreCheck and Global Entry starting Sunday at 6 a.m. ET due to funding lapsing on February 14, leading to staff shortages at airport security lines, which may result in longer wait times and decreased customer satisfaction.
- Travel Industry Risks: This measure could exacerbate airport congestion, with airlines warning that the abrupt suspension will create confusion and planning challenges for travelers, potentially dampening near-term demand and affecting airline sentiment if the government shutdown persists.
- Employee Shortage Concerns: While approximately 95% of TSA's employees are required to work during a shutdown, history shows that prolonged funding gaps can lead to staff calling in sick due to unpaid wages, increasing the risk of airport bottlenecks, particularly at major hub airports.
- Market Monitoring Necessity: Investors should monitor the potential throughput disruption risks faced by airlines and airport operators, as widespread delays could negatively impact consumer travel sentiment, and a prolonged shutdown may have greater operational and reputational consequences for the airline industry and related travel stocks.
See More
US Suspends TSA PreCheck and Global Entry Programs Amid Government Shutdown
- Reason for Suspension: The Department of Homeland Security suspended TSA PreCheck and Global Entry programs on Sunday due to a partial government shutdown, affecting security processes at over 200 airports and causing significant inconvenience for millions of travelers, highlighting the direct impact of government operations on public travel.
- Membership Impact: As of 2024, TSA PreCheck has over 20 million active members, with approximately 34% of screened passengers being program members; the suspension will significantly increase wait times at security checkpoints, potentially leading travelers to choose alternative travel methods, thereby affecting airline revenues.
- Flight Cancellations: In anticipation of a massive winter storm, airlines have canceled over 6,000 flights and waived cancellation and change fees at multiple East Coast airports, demonstrating the dual impact of weather and policy on the aviation industry.
- Industry Reaction: The airline industry expressed strong dissatisfaction with the suspension of programs due to the government shutdown, viewing travelers as political pawns; last year's shutdown already cost the industry $6.1 billion and affected about 6 million travelers, indicating a long-term threat to the tourism sector from policy instability.
See More
DHS Suspends TSA PreCheck and Global Entry Amid Government Shutdown
- Program Suspension: The Department of Homeland Security suspended TSA PreCheck and Global Entry on Sunday due to a partial government shutdown, affecting over 20 million active members and likely leading to travel delays and customer dissatisfaction.
- Flight Cancellations: With a massive winter storm approaching the Northeast, airlines have canceled over 6,000 flights and waived cancellation and change fees for airports from Virginia to Maine, exacerbating travel chaos.
- Industry Backlash: Airline executives have expressed strong discontent with the decision, arguing that the traveling public is once again being used as a political pawn, which could lead to decreased travel demand and impact airline revenues.
- Historical Impact: The previous fall government shutdown cost the travel industry $6.1 billion and affected about 6 million travelers, raising concerns that similar economic losses could occur again due to the current shutdown, negatively impacting the tourism sector in the long term.
See More
US Airlines Waive Fees Amid Winter Storm Disruptions
- Flight Cancellations and Delays: Major airlines including Delta, American, JetBlue, United, and Spirit are facing significant disruptions due to an impending winter storm expected to bring 13 to 18 inches of snow to the Eastern U.S., potentially leading to widespread flight cancellations and delays.
- Fee Waiver Policies: Airlines have waived cancellation and change fees for passengers traveling before February 26, with Southwest allowing rebooking without fare differences within two weeks, aiming to alleviate passenger inconveniences caused by the severe weather.
- Estimated Economic Losses: American Airlines projected a revenue loss between $150 million and $200 million due to travel disruptions from the winter storm, highlighting the financial impact on the airline and increasing tensions between employees and management amid recovery challenges.
- Employee Struggles Intensified: The storm has left some American Airlines crew members stranded at airports, facing accommodation issues, which has heightened tensions between frontline staff and CEO Robert Isom, illustrating the management challenges airlines face during extreme weather events.
See More
Blizzard Warning in NYC: Airlines Waive Fees Ahead of Storm
- Blizzard Warning Issued: The National Weather Service has issued a blizzard warning for the New York City area on Sunday, forecasting severe winter weather that could bring over a foot of snow and winds up to 55 mph, potentially leading to widespread travel disruptions across the region.
- Airlines Waive Fees: Major U.S. airlines, including Delta, American, and JetBlue, have waived change and cancellation fees ahead of the storm, allowing passengers to rebook flights without penalties until February 26, demonstrating their responsiveness to customer needs during adverse weather conditions.
- Estimated Economic Losses: American Airlines projected a revenue loss between $150 million and $200 million due to travel disruptions caused by January's winter storm, highlighting the financial impact of severe weather on airline operations and increasing tensions between frontline employees and management.
- Flight Cancellation Status: As of 11:30 a.m. ET Saturday, flight cancellations across the U.S. remained minimal despite the impending storm, indicating the airlines' preparedness and adaptability in managing operations during severe weather, with impacts expected to last through much of Monday.
See More
DHS Confirms TSA PreCheck Will Remain Operational Amid Shutdown
- TSA PreCheck Continuation: The DHS confirmed that TSA PreCheck will remain operational despite the government shutdown, which helps mitigate immediate airport congestion risks, thereby ensuring stability in airline operations and passenger volumes.
- Global Entry Suspension: In contrast to TSA PreCheck, the Global Entry program remains suspended, and DHS has halted certain nonessential services, such as courtesy escorts for Congress members, potentially affecting some travelers' experiences.
- Employee Absenteeism Risk: Although approximately 95% of TSA employees are required to work during the shutdown, historical data indicates that prolonged funding gaps can lead to increased absenteeism among unpaid federal workers, which may create bottlenecks and impact security efficiency in the future.
- Market Impact Analysis: While core airport security functions remain intact for now, reducing short-term operational risks for airlines and airport operators, prolonged shutdown conditions could pressure staffing, traveler confidence, and ultimately air traffic volumes, necessitating close monitoring by investors.
See More
DHS Suspends TSA PreCheck and Global Entry Amid Funding Lapse
- Security Check Delays: The Department of Homeland Security announced the suspension of TSA PreCheck and Global Entry starting Sunday at 6 a.m. ET due to funding lapsing on February 14, leading to staff shortages at airport security lines, which may result in longer wait times and decreased customer satisfaction.
- Travel Industry Risks: This measure could exacerbate airport congestion, with airlines warning that the abrupt suspension will create confusion and planning challenges for travelers, potentially dampening near-term demand and affecting airline sentiment if the government shutdown persists.
- Employee Shortage Concerns: While approximately 95% of TSA's employees are required to work during a shutdown, history shows that prolonged funding gaps can lead to staff calling in sick due to unpaid wages, increasing the risk of airport bottlenecks, particularly at major hub airports.
- Market Monitoring Necessity: Investors should monitor the potential throughput disruption risks faced by airlines and airport operators, as widespread delays could negatively impact consumer travel sentiment, and a prolonged shutdown may have greater operational and reputational consequences for the airline industry and related travel stocks.
See More
US Suspends TSA PreCheck and Global Entry Programs Amid Government Shutdown
- Reason for Suspension: The Department of Homeland Security suspended TSA PreCheck and Global Entry programs on Sunday due to a partial government shutdown, affecting security processes at over 200 airports and causing significant inconvenience for millions of travelers, highlighting the direct impact of government operations on public travel.
- Membership Impact: As of 2024, TSA PreCheck has over 20 million active members, with approximately 34% of screened passengers being program members; the suspension will significantly increase wait times at security checkpoints, potentially leading travelers to choose alternative travel methods, thereby affecting airline revenues.
- Flight Cancellations: In anticipation of a massive winter storm, airlines have canceled over 6,000 flights and waived cancellation and change fees at multiple East Coast airports, demonstrating the dual impact of weather and policy on the aviation industry.
- Industry Reaction: The airline industry expressed strong dissatisfaction with the suspension of programs due to the government shutdown, viewing travelers as political pawns; last year's shutdown already cost the industry $6.1 billion and affected about 6 million travelers, indicating a long-term threat to the tourism sector from policy instability.
See More
DHS Suspends TSA PreCheck and Global Entry Amid Government Shutdown
- Program Suspension: The Department of Homeland Security suspended TSA PreCheck and Global Entry on Sunday due to a partial government shutdown, affecting over 20 million active members and likely leading to travel delays and customer dissatisfaction.
- Flight Cancellations: With a massive winter storm approaching the Northeast, airlines have canceled over 6,000 flights and waived cancellation and change fees for airports from Virginia to Maine, exacerbating travel chaos.
- Industry Backlash: Airline executives have expressed strong discontent with the decision, arguing that the traveling public is once again being used as a political pawn, which could lead to decreased travel demand and impact airline revenues.
- Historical Impact: The previous fall government shutdown cost the travel industry $6.1 billion and affected about 6 million travelers, raising concerns that similar economic losses could occur again due to the current shutdown, negatively impacting the tourism sector in the long term.
See More
US Airlines Waive Fees Amid Winter Storm Disruptions
- Flight Cancellations and Delays: Major airlines including Delta, American, JetBlue, United, and Spirit are facing significant disruptions due to an impending winter storm expected to bring 13 to 18 inches of snow to the Eastern U.S., potentially leading to widespread flight cancellations and delays.
- Fee Waiver Policies: Airlines have waived cancellation and change fees for passengers traveling before February 26, with Southwest allowing rebooking without fare differences within two weeks, aiming to alleviate passenger inconveniences caused by the severe weather.
- Estimated Economic Losses: American Airlines projected a revenue loss between $150 million and $200 million due to travel disruptions from the winter storm, highlighting the financial impact on the airline and increasing tensions between employees and management amid recovery challenges.
- Employee Struggles Intensified: The storm has left some American Airlines crew members stranded at airports, facing accommodation issues, which has heightened tensions between frontline staff and CEO Robert Isom, illustrating the management challenges airlines face during extreme weather events.
See More
Blizzard Warning in NYC: Airlines Waive Fees Ahead of Storm
- Blizzard Warning Issued: The National Weather Service has issued a blizzard warning for the New York City area on Sunday, forecasting severe winter weather that could bring over a foot of snow and winds up to 55 mph, potentially leading to widespread travel disruptions across the region.
- Airlines Waive Fees: Major U.S. airlines, including Delta, American, and JetBlue, have waived change and cancellation fees ahead of the storm, allowing passengers to rebook flights without penalties until February 26, demonstrating their responsiveness to customer needs during adverse weather conditions.
- Estimated Economic Losses: American Airlines projected a revenue loss between $150 million and $200 million due to travel disruptions caused by January's winter storm, highlighting the financial impact of severe weather on airline operations and increasing tensions between frontline employees and management.
- Flight Cancellation Status: As of 11:30 a.m. ET Saturday, flight cancellations across the U.S. remained minimal despite the impending storm, indicating the airlines' preparedness and adaptability in managing operations during severe weather, with impacts expected to last through much of Monday.
See More
