Several airlines are on the verge of a meltdown, says The Points Guy's Brian Kelly
By CNBC Television
Key Concepts
- Government Shutdown Impact on Travel: The primary focus is the severe disruption to the travel industry caused by a government shutdown, leading to flight cancellations, delays, and operational meltdowns.
- Airline Operational Issues: Crew timing out, mispositioned aircraft, and overwhelmed airline systems are key factors contributing to the travel chaos.
- Passenger Strategies: Proactive measures, utilizing specific apps, understanding refund policies, and considering alternative transportation are crucial for travelers.
- Long-Term Recovery: The video highlights that even after the government reopens, the travel system will face lingering issues due to unpaid essential personnel and training backlogs.
- In-Flight Technology: Discussion on Wi-Fi functionality, refund policies for non-working services, and the impact of aircraft materials on signal reception.
Government Shutdown's Devastating Impact on Air Travel
The Senate's efforts to reopen the government are underway, but the travel industry is expected to take weeks to recover from the ongoing disruptions. The weekend saw thousands of flights canceled and delayed, a trend that continued into the current morning. Brian Kelly, "The Points Guy," describes the situation as "pretty bad," with over 50% of flights from major US carriers experiencing delays or cancellations yesterday. He shared anecdotal evidence of severe issues, such as 50 planes waiting to take off at LaGuardia, only for crews to time out at the last minute.
Airline Meltdown and Interconnected Systems
Kelly explains that several airlines are "on the verge of a meltdown" due to issues like crews timing out and aircraft being out of position. The air travel system is highly interconnected, meaning a problem in one area can quickly cascade and worsen the situation. Even with airlines doing their best, any additional weather can "really spiral things" for the next week.
Personal Experience and Notification Delays
The interviewer shared a personal experience of their 6 a.m. flight being canceled and rebooked for after 3 p.m. Crucially, the notification was not received until after they noticed the cancellation on the app. This highlights a significant problem: airline email systems are overwhelmed, and passengers cannot assume they will be notified or automatically rebooked. Many flights are already on standby, meaning securing another seat is difficult.
Strategies for Travelers Amidst Chaos
For those who must travel, Kelly advises being "proactive."
Utilizing Flight Tracking Apps
A key recommendation is the app Flighty, which pulls in air traffic control data and often alerts users before the airline does. This is particularly useful given the airline notification system's overload. Kelly contrasts Flighty with FlightAware, noting that Flighty is more innovative and actively posting updates on X (formerly Twitter) during this crisis, while FlightAware has been silent. Flighty is described as an "aviation geek" app with new features and is considered the more advanced option.
Refund Policies and Vouchers
Kelly strongly advises against accepting airline vouchers if travel is canceled. Instead, passengers should insist on a "full refund" based on DOT rules, even if the cancellation is due to the shutdown. He emphasizes that "cash is better than any airline voucher."
Ripple Effects and Long-Term Recovery
The ripple effects of the shutdown are significant and will persist. Even if a deal is reached by the end of the week, Kelly estimates it will take a "full week before things get back to almost normal."
Unpaid Essential Personnel
A major concern is that air traffic controllers and TSA agents will not have been paid for an extended period. This means "call-outs" and continued issues are likely, even after the government reopens. The processing and other related functions will still be strained.
Air Traffic Control Shortages
Kelly points out that the air traffic control system is already short by 4,000 personnel, and the shutdown has "certainly did not help with training." Therefore, it will take a considerable amount of time to return to normal operations.
International Travel and Thanksgiving
For international travel, Kelly suggests less worry but still advises checking apps and staying informed. Regarding Thanksgiving travel, he anticipates it should "calm down" but reiterates that it will be "bumpy for at least another week."
Alternative Transportation and Travel Hacks
Given the current situation, Kelly reiterates his advice that if a destination is a 10-12 hour drive, driving might be a better option than flying, though he acknowledges this isn't practical for all business travel.
Backup Flight Strategy
Kelly, and surprisingly even the Frontier Airlines CEO, recommends booking a "secondary option on another airline, especially using your points." This backup flight can be canceled free of charge up to departure, providing a safety net.
Extreme Travel Scenarios
The discussion touches on extreme travel scenarios, such as a 64-hour Greyhound bus trip from New York to LA, highlighting the severity of flight disruptions. While transcontinental flights are still operating, delays are expected.
Airport Bathroom and Gate Wait Times
A practical, albeit grim, piece of advice for travelers at airports like LaGuardia and JFK is to "go to the bathroom before the plane takes off for taxi way" due to potential 2-3 hour wait times. Similarly, passengers may face 2-3 hour waits for a gate after landing. The humorously suggested "depends" underscores the extreme wait times.
Business Travel and East Coast Travel
For business travelers, planning is nearly impossible. For travel on the East Coast, taking Amtrak is highly recommended when feasible.
In-Flight Wi-Fi and Technology Issues
The conversation shifts to in-flight Wi-Fi and the ability to use phones on the ground.
Wi-Fi Functionality and Refunds
Many airlines charge for Wi-Fi, which often doesn't work until the plane reaches 10,000 feet, or sometimes not at all. Kelly advises passengers to "absolutely" seek refunds for non-working Wi-Fi services. This extends to other services, like bogus resort fees at hotels, for which refunds can be requested through hotel apps.
Advancements in In-Flight Connectivity
United is rolling out Starlink on Qatar Airways, which is described as "unbelievable" and faster than most ground internet. However, it will take years for this technology to be widely adopted across most planes.
Aircraft Materials and Signal Blocking
A technical point is raised about why phone signals are often poor on the ground, especially on aircraft like the Boeing 787. It's explained that the composite materials used in these planes can block signals, leading to the inability to get a signal even when on the ground. This is not due to throttling but the aircraft's construction.
Personal Travel Plans and Outlook
Brian Kelly is not traveling this week but has an international flight to Peru next weekend. He is hopeful it will go smoothly, as most international flights have been operating without major issues. He reiterates that while Thanksgiving travel might calm down, the overall situation will remain "bumpy for at least another week."
Conclusion
The current government shutdown has created a severe and prolonged crisis in the travel industry, characterized by widespread flight cancellations and delays. Passengers are advised to be proactive, utilize specialized apps like Flighty, understand their refund rights, and consider alternative transportation. The recovery process will be gradual, with lingering issues expected due to unpaid essential personnel and existing staffing shortages. While technological advancements in in-flight connectivity are on the horizon, the immediate future for air travel remains challenging.
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