The global aviation industry is currently experiencing major turbulence as a result of regulatory, operational, and market challenges over the past 48 hours. The most notable development is the US Federal Aviation Administration’s order to reduce flight volume by 10 percent at 40 major US airports, including almost all major hubs. This drastic step is a response to ongoing air traffic control staffing shortages caused by the prolonged US government shutdown. Regional airlines are hardest hit, with significant cuts in regional jet operations, while major carriers like United, American, and Delta shield most international and long-haul flights from disruption. United Airlines, for example, will maintain its international schedule but trim domestic and regional operations, and is offering flexible rebooking or refunds to affected customers. American and Delta are implementing similar customer accommodations.

This regulatory disruption compounds ongoing operational strains, with more than 13,000 US air traffic controllers currently working without pay. Industry groups, unions, and airlines are urging Congress for an immediate resolution, highlighting risks to service reliability and passenger rights. Recent data from Cirium shows that up to half of daily departures from hubs like Chicago O’Hare involve regional jets, signaling potentially widespread changes in US domestic connectivity.

On the global stage, market activity continues with significant new deals. Turkish Airlines has signed a major engine deal with GE Aerospace for its incoming Boeing 787 Dreamliner fleet, confirming orders for 75 aircraft for delivery between 2029 and 2035 and planning further Boeing 737 Max purchases. Meanwhile, Boeing has secured new commitments from Somon Air in Tajikistan for up to 14 aircraft, including both 787 and 737 Max models. Central Asian carrier Air Astana has also placed sizable orders for Boeing widebody jets.

Innovation and emerging business models are evident, as demonstrated by Joby Aviation’s agreement to introduce electric air taxis in Kazakhstan—potentially worth up to 250 million dollars—and partnerships in Florida to advance all-electric regional air operations.

Price trends and consumer behavior continue to reflect recovery and caution. The focus is on resilience, flexible service offerings, and supply chain agility as leaders manage disruptions and continue expanding into growth markets. Compared to recent months, the scale of disruption in US domestic markets is unprecedented, but global expansion, technological innovation, and sustainability initiatives remain robust.

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This content was created in partnership and with the help of Artificial Intelligence AI