By Rajesh Kumar Singh

CHICAGO (Reuters) -The longest federal government shutdown disrupted tens of thousands of flights in recent days, and with it, U.S. carriers’ optimistic expectations for the holiday quarter. Now, they are wrangling with how to minimize the ripple effects on travelers and their bottom line as the government looks set to reopen by the end of the week.

Carriers expected steady demand this quarter after corporate and leisure bookings suffered in the first half of 2025 due to economic concerns and trade tensions. But growth in bookings for the upcoming Thanksgiving holiday has halved to about 1% since the end of October, according to aviation analytics firm Cirium, reflecting trepidation among travelers as the shutdown lingered.

The U.S. Senate approved a bill on Monday

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