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The travel industry has already lost $4 billion from the government shutdown. The FAA’s flight cuts starting Friday are a new threat

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The air travel nightmare is only getting worse. The Federal Aviation Administration announced it will start cutting the number of flights in “high traffic” parts of the U.S. as the government shutdown continues and airports suffer from extreme staffing shortages. 

There will be a 10% reduction in capacity at 40 airports, Transportation Secretary Sean Duffy said Wednesday. That amounts to thousands of flights each day, primarily domestic and regional.

“This is about where’s the pressure and how do we alleviate the pressure,” he said. 

The pressure stems from a shortage of TSA agents and air traffic controllers during the government shutdown, which began Oct. 1. The shutdown followed Congress’s failure to pass legislation to fund the government for 2026. Democrats have blocked Republican funding bills because they don’t include provisions like extending Affordable Care Act subsidies. But Republicans say they’re only willing to discuss those when the government reopens, leading to gridlock.

And because of the shutdown, nearly 13,000 air traffic controllers and 60,000 TSA agents have been working without pay for more than a month, so some have not been showing up to work. 

“Currently, half of our Core 30 facilities are experiencing staffing shortages, and nearly 80% of air traffic controllers are absent at New York–area facilities,” according to an X post by the FAA on Oct. 31. “The shutdown must end so that these controllers receive the pay they’ve earned and travelers can avoid further disruptions and delays.”

TSA agents are stretched so thin that passengers have been forced to wait in lines as long as four-and-a-half hours at some airports, especially at Houston’s George Bush Intercontinental and Hobby airports. Other major hubs, such as Atlanta and Newark, have experienced long wait times.  

Even without pay, TSA agents aren’t allowed to strike as federal workers. A similar situation happened during the 1980s during the Reagan administration. About 13,000 air traffic controllers went on strike following negotiations over pay and work schedules. Still, the Reagan administration fired 11,000 of them and barred them from ever working for the federal government again. Instead, today, some TSA employees and air traffic controllers have simply not been showing up for work, but Duffy has said he won’t fire them.

Duffy called the action to cut back the number of flights at major airports including Hartsfield-Jackson Atlanta International, Charlotte Douglas International, Boston Logan International, Baltimore/Washington International, as well as Newark, Washington Dulles, and Reagan National “proactive,” saying airports and airlines don’t want to “find ourselves in a situation, we don’t want a horse out of the barn, and look back and say there were issues we could have taken that we didn’t.”

“We are going to proactively make decisions that keep the airspace safe,” he said. 

Airlines are losing out

Given that thousands of flights are canceled each day, airlines will have fewer passengers—and therefore less money to make. 

Plus, United Airlines CEO Scott Kirby wrote in an open letter to customers on Thursday any customer who is traveling during this period is eligible for a refund if they don’t wish to fly, even if their flight isn’t impacted. That includes non-refundable and basic economy tickets.

“The FAA’s goal is to relieve pressure on the aviation system so that we can all continue to operate safely,” Kirby wrote. “That is the FAA’s highest priority, and ours as well. No matter what environment we’re operating in, we will not compromise on safety.”

United Airlines declined to comment on how much money it has lost so far or how much it expects to lose due to the government shutdown. However, the U.S. Travel Association said in a letter to Congressional leaders this week that the economy has already lost more than $4 billion because of the shutdown.

Delta said in a Thursday announcement it plans to operate the “vast majority” of its flights as scheduled, including international service “while keeping safety our top priority.” They’re also offering customers cancellations or refunds “without penalty.”

American Airlines is taking a similar approach to refunds and cancellations and said Thursday that most flights are not expected to be affected.

“Disrupting customers’ plans is the last thing we want to do,” according to American Airlines. “In the meantime, we continue to urge leaders in Washington, D.C., to reach an immediate resolution to end the shutdown.” The airline also said it remains “grateful” to air traffic controllers and TSA agents who have been working without pay.”

Delta and American Airlines did not respond to Fortune’s request for comment on how much they had lost or plan to lose due to the shutdown.

Upcoming Thanksgiving travel

Thanksgiving is just 21 days away, and happens to be one of the busiest air travel periods of the year. 

Considering these changes are going into effect tomorrow and the current government shutdown is the longest in American history at more than 36 days, there’s reason to be concerned that Thanksgiving travel plans could be impacted.

“With Thanksgiving, the busiest travel period of the year, imminently approaching, the consequences of a continued shutdown will be immediate, deeply felt by millions of American travelers, and economically devastating to communities in every state,” the U.S. Travel Association wrote in its letter this week.

Last year, more than 20 million passengers flew in the U.S. during the week of Thanksgiving, according to the U.S. Travel Association, and holiday travel spending generates billions of dollars in economic activity, supports jobs, local tax bases, and small businesses nationwide. 

“Thanksgiving is not only a time of national tradition and family connection, but also one of the most economically important travel weeks of the year,” according to the U.S. Travel Association. “A continued shutdown is likely to significantly suppress travel demand and spending, creating a real threat to American workers, businesses, and the overall economy.”



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Epstein grand jury documents from Florida can be released by DOJ, judge rules

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A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

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Sisak reported from New York.



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Miss Universe co-owner gets bank accounts frozen as part of probe into drugs, fuel and arms trafficking

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Mexico’s anti-money laundering office has frozen the bank accounts of the Mexican co-owner of Miss Universe as part of an investigation into drugs, fuel and arms trafficking, an official said Friday.

The country’s Financial Intelligence Unit, which oversees the fight against money laundering, froze Mexican businessman Raúl Rocha Cantú’s bank accounts in Mexico, a federal official told The Associated Press on condition of anonymity because he was not authorized to comment on the investigation.

The action against Rocha Cantú adds to mounting controversies for the Miss Universe organization. Last week, a court in Thailand issued an arrest warrant for the Thai co-owner of the Miss Universe Organization in connection with a fraud case and this year’s competition — won by Miss Mexico Fatima Bosch — faced allegations of rigging.

The Miss Universe organization did not immediately respond to an email from The Associated Press seeking comment about the allegations against Rocha Cantú.

Mexico’s federal prosecutors said last week that Rocha Cantú has been under investigation since November 2024 for alleged organized crime activity, including drug and arms trafficking, as well as fuel theft. Last month, a federal judge issued 13 arrest warrants for some of those involved in the case, including the Mexican businessman, whose company Legacy Holding Group USA owns 50% of the Miss Universe shares.

The organization’s other 50% belongs to JKN Global Group Public Co. Ltd., a company owned by Jakkaphong “Anne” Jakrajutatip.

A Thai court last week issued an arrest warrant for Jakrajutatip who was released on bail in 2023 on the fraud case. She failed to appear as required in a Bangkok court on Nov. 25. Since she did not notify the court about her absence, she was deemed to be a flight risk, according to a statement from the Bangkok South District Court.

The court rescheduled her hearing for Dec. 26.

Rocha Cantú was also a part owner of the Casino Royale in the northern Mexican city of Monterrey, when it was attacked in 2011 by a group of gunmen who entered it, doused gasoline and set it on fire, killing 52 people.

Baltazar Saucedo Estrada, who was charged with planning the attack, was sentenced in July to 135 years in prison.



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Elon Musk’s X fined $140 million by EU for breaching digital regulations

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European Union regulators on Friday fined X, Elon Musk’s social media platform, 120 million euros ($140 million) for breaches of the bloc’s digital regulations, in a move that risks rekindling tensions with Washington over free speech.

The European Commission issued its decision following an investigation it opened two years ago into X under the 27-nation bloc’s Digital Services Act, also known as the DSA.

It’s the first time that the EU has issued a so-called non-compliance decision since rolling out the DSA. The sweeping rulebook requires platforms to take more responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines.

The Commission, the bloc’s executive arm, said it was punishing X because of three different breaches of the DSA’s transparency requirements. The decision could rile President Donald Trump, whose administration has lashed out at digital regulations, complained that Brussels was targeting U.S. tech companies and vowed to retaliate.

U.S. Secretary of State Marco Rubio posted on his X account that the Commission’s fine was akin to an attack on the American people. Musk later agreed with Rubio’s sentiment.

“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Rubio wrote. “The days of censoring Americans online are over.”

Vice President JD Vance, posting on X ahead of the decision, accused the Commission of seeking to fine X “for not engaging in censorship.”

“The EU should be supporting free speech not attacking American companies over garbage,” he wrote.

Officials denied the rules were intended to muzzle Big Tech companies. The Commission is “not targeting anyone, not targeting any company, not targeting any jurisdictions based on their color or their country of origin,” spokesman Thomas Regnier told a regular briefing in Brussels. “Absolutely not. This is based on a process, democratic process.”

X did not respond immediately to an email request for comment.

EU regulators had already outlined their accusations in mid-2024 when they released preliminary findings of their investigation into X.

Regulators said X’s blue checkmarks broke the rules because on “deceptive design practices” and could expose users to scams and manipulation.

Before Musk acquired X, when it was previously known as Twitter, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts, such as Beyonce, Pope Francis, writer Neil Gaiman and rapper Lil Nas X.

After he bought it in 2022, the site started issuing the badges to anyone who wanted to pay $8 per month.

That means X does not meaningfully verify who’s behind the account, “making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said in its announcement.

X also fell short of the transparency requirements for its ad database, regulators said.

Platforms in the EU are required to provide a database of all the digital advertisements they have carried, with details such as who paid for them and the intended audience, to help researches detect scams, fake ads and coordinated influence campaigns. But X’s database, the Commission said, is undermined by design features and access barriers such as “excessive delays in processing.”

Regulators also said X also puts up “unnecessary barriers” for researchers trying to access public data, which stymies research into systemic risks that European users face.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users,” Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security and democracy, said in a prepared statement.

The Commission also wrapped up a separate DSA case Friday involving TikTok’s ad database after the video-sharing platform promised to make changes to ensure full transparency.

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AP Writer Lorne Cook in Brussels contributed to this report.



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