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Nov 6, 2025

Airlines, travel buyers brace for shutdown-related refunds and re-routing rules

Airlines, travel buyers brace for shutdown-related refunds and re-routing rules
In a parallel notice to carriers on 6 November, the Department of Transportation reminded airlines that the shutdown-driven cancellations triggered by the FAA order require full refunds—not vouchers—under 14 CFR 259.5. DOT also clarified that EU 261 compensation is not payable on U.S.-originating itineraries because the disruption is “government-mandated.”

Travel-management companies are activating war rooms to handle mass exchanges. American Express GBT expects call volume to triple through the weekend, while CWT warns that some negotiated corporate fares may re-price if reissued, inflating budgets by up to 12 %. Meanwhile, CBP says Global Entry conditionally approved interviews missed due to flight cancellations can be rescheduled without losing the one-year validity window.

Airlines, travel buyers brace for shutdown-related refunds and re-routing rules


The National Business Aviation Association urged members to plan around launch-day slot restrictions and consider secondary airports not on the FAA list. Private-jet brokers expect a spike in demand but caution that crews may also face ATC delays on the ground.

If the shutdown extends into Thanksgiving, experts predict airlines will seek temporary antitrust immunity to coordinate reduced capacity—an option last used after 9/11. Mobility managers should brief executives on alternative routing via Canada or Mexico, where airspace remains unaffected.
Airlines, travel buyers brace for shutdown-related refunds and re-routing rules
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