DHS Suspends TSA PreCheck and Global Entry Amid Government Shutdown
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Newsfilter
- 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.
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Analyst Views on AAL
Wall Street analysts forecast AAL stock price to rise
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 13.350
Low
11.00
Averages
17.93
High
22.00
Current: 13.350
Low
11.00
Averages
17.93
High
22.00
About AAL
American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo, among others. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle. Its cargo division provides a wide range of freight and mail services, with facilities and interline connections available across the globe. It operates approximately 977 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operate an additional 585 regional aircraft. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc.
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 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
American Airlines Shares Drop 5.32% Amid Oil Price Pressures
- Stock Price Decline: American Airlines Group (AAL) closed at $13.35 on Thursday, down 5.32%, reflecting pressure on airline margins due to rising crude oil prices, with investors closely monitoring the upcoming 10-K filing and a safety-related vote.
- Surge in Trading Volume: The company saw a trading volume of 63.5 million shares, nearly 15% above its three-month average of 55.3 million shares, indicating heightened market attention to its stock volatility, likely linked to investor concerns about future performance.
- Earnings Pressure: American Airlines targets adjusted earnings per share of $1.70 to $2.70 for fiscal 2026; despite posting record revenue last quarter, it missed earnings expectations, leaving less room for error as fuel costs continue to rise.
- Sector-Wide Pressure: With crude oil prices hovering near six-month highs, airline stocks faced broad selloffs, as competitors Delta Air Lines and United Airlines also saw declines of 5.16% and 5.88%, respectively, highlighting the cost challenges and cautious market sentiment affecting the entire industry.
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
American Airlines Shares Drop 5.32% Amid Oil Price Pressures
- Stock Price Decline: American Airlines Group (AAL) closed at $13.35 on Thursday, down 5.32%, reflecting pressure on airline margins due to rising crude oil prices, with investors closely monitoring the upcoming 10-K filing and a safety-related vote.
- Surge in Trading Volume: The company saw a trading volume of 63.5 million shares, nearly 15% above its three-month average of 55.3 million shares, indicating heightened market attention to its stock volatility, likely linked to investor concerns about future performance.
- Earnings Pressure: American Airlines targets adjusted earnings per share of $1.70 to $2.70 for fiscal 2026; despite posting record revenue last quarter, it missed earnings expectations, leaving less room for error as fuel costs continue to rise.
- Sector-Wide Pressure: With crude oil prices hovering near six-month highs, airline stocks faced broad selloffs, as competitors Delta Air Lines and United Airlines also saw declines of 5.16% and 5.88%, respectively, highlighting the cost challenges and cautious market sentiment affecting the entire industry.
See More
