Shares in US airlines, which have been roiled as the government shutdown has dragged on, popped shortly after the opening bell on Monday on news of a breakthrough in Washington, but then pared gains.
Shares in Delta Air Lines (DAL) and United Airlines (UAL) gained more than 1.2% and more than 0.5%, respectively, after news broke late Sunday night that the Senate had advanced a bill to end the government shutdown. JetBlue Airways (JBLU) and Southwest (LUV) saw their shares rally by more than 0.7% and more than 1.6%, respectively.
As of 10:00 a.m. ET, all four airlines had pared their gains, with United slipping into the red by more than 4%.
US airways have been thrown into chaos over the past month as air traffic control workers, crucial to the safe operation of airspace, have gone without pay, prompting widespread delays and cancellations.
Over the weekend, major US airports were instructed by the Department of Transportation to cut their flight capacity by up to 10%, just as the busy holiday season approached. As of 7:15 a.m. ET Monday morning, around 5.5% of the day’s scheduled flights had been canceled, according to data reported by Bloomberg,
Chicago O’Hare, Newark Liberty International, and LaGuardia Airport were the hardest-hit airports, with at least 8% of their flights canceled. Delta Air Lines suffered the most cancellations among the airlines.