Business

Air traffic controllers are now working without pay. Some are grappling with how to pay for the medicine needed to keep their children alive

Published

3 months ago

October 28, 2025

Air traffic controllers will miss their paychecks Tuesday because of the ongoing government shutdown, raising concerns that mounting financial stress could take a toll on the already understaffed employees who guide thousands of flights each day.

Flight delays are becoming more common across the country as more controllers call out sick because the Federal Aviation Administration was already so short on controllers before the shutdown.

Transportation Secretary Sean Duffy and the president of the National Air Traffic Controllers Association Nick Daniels have continued to emphasize the pressure that controllers are feeling. They say the problems are likely to only get worse the longer the shutdown continues.

Not only are controllers worrying about how to pay for their mortgages and groceries, but Daniels said some of them are also grappling with how to pay for the medicine needed to keep their children alive. Duffy said he heard from one controller who had to tell his daughter she couldn’t join the traveling volleyball team she had earned a spot on because he couldn’t afford the cost during the shutdown.

“Air traffic controllers have to have 100% of focus 100% of the time,” Daniels said Tuesday at a news conference alongside Duffy at LaGuardia Airport in New York. “And I’m watching air traffic controllers going to work. I’m getting the stories. They’re worried about paying for medicine for their daughter. I got a message from a controller that said, ‘I’m running out of money. And if she doesn’t get the medicine she needs, she dies. That’s the end.’”

The FAA restricts the number of flights landing and taking off at an airport anytime there is a shortage of controllers to ensure safety. Most of the time that has meant delays — sometimes hours long — at airports like New Jersey’s Newark Liberty International Airport or Burbank airport in California. But over the weekend, Los Angeles International Airport actually had to stop all flights for nearly two hours.

Controllers are planning to assemble outside at least 17 airports nationwide Tuesday to hand out leaflets urging an end to the shutdown as soon as possible. Worrying about how to pay their bills is driving some to take second jobs to make ends meet.

The number of controllers calling in sick has increased during the shutdown both because of their frustration with the situation and because controllers need the time off to work second jobs instead of continuing to work six days a week like many of them routinely do. Duffy has said that controllers could be fired if they abuse their sick time, but the vast majority of them have continued to show up for work every day.

Air traffic controller Joe Segretto, who works at a regional radar facility that directs planes in and out of airports in the New York area, said morale is suffering as controllers worry more about money.

“The pressure is real,” Segretto said. “We have people trying to keep these airplanes safe. We have trainees — that are trying to learn a new job that is very fast-paced, very stressful, very complex — now having to worry about how they’re going to pay bills.”

Duffy said the shutdown is also making it harder for the government to reduce the longstanding shortage of about 3,000 controllers. He said that some students have dropped out of the air traffic controller academy in Oklahoma City, and younger controllers who are still training to do the job might abandon the career because they can’t afford to go without pay.

“This shutdown is making it harder for me to accomplish those goals,” Duffy said.

The longer the shutdown continues, pressure will continue to build on Congress to reach an agreement to reopen the government. During the 35-day shutdown in President Donald Trump’s first term the disruptions to flights across the country contributed to the end of that disruption. But so far, Democrats and Republicans have shown little sign of reaching a deal to fund the government.

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Business

Davos 2026: reading the signals, not the headlines

Published

19 minutes ago

January 21, 2026

Jace Porter

Davos 2026: reading the signals, not the headlines | Fortune

Louisa Loran advises boards and leadership teams on transformation and long-term value creation and currently serves on the boards of Copenhagen Business School and CataCap Private Equity. At Google, Louisa launched a billion-dollar supply chain solutions business, doubled growth in a global industry vertical, and led strategic business transformation for the company’s largest customers in EMEA—working at the forefront of AI, data, and platform innovation. At Maersk, she co-authored the strategy that redefined the brand globally and doubled its share price, helping pivot the company from traditional shipping to integrated logistics. Her career began in the luxury and FMCG space with Moët Hennessy and Diageo, where she built iconic brands and led innovation at the intersection of heritage and digital transformation.

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Business

Hotels allege predatory pricing, forced exclusivity in Trip.com antitrust probe

Published

50 minutes ago

January 21, 2026

Jace Porter

China’s hotels are welcoming record numbers of travelers, yet room rates are sinking—a paradox many operators blame on Trip.com Group Ltd.

For Gary Huang, running a five-room homestay in the scenic Huzhou hills near Shanghai was supposed to secure his family’s financial future. Instead, he and other hoteliers in China’s southeastern Zhejiang province say nightly rates have fallen to levels last seen more than a decade ago, as Trip.com’s frequent discount campaigns force them to cut prices simply to remain visible on China’s dominant booking platform.

“The promotion campaigns now are almost a daily routine,” said Huang, who asked to use his self-given English name out of concern of speaking out against Trip.com. “We have to constantly cut prices at least 15% to attract travelers. We have no choice but to go along with the price cuts.”

Trip.com has been central to China’s post-pandemic travel rebound, connecting millions of travelers with small operators like Huang. But for many hotels, visibility—and sometimes survival—comes at the expense of profits.

That dynamic is now at the heart of Beijing’s antitrust probe. Regulators allege Trip.com is abusing its market position, with analysts citing deflation across the sector as the government’s main concern. Interviews with lodging operators, industry groups and travel consultants describe a system where constant price-cutting and opaque policies are eroding profitability, even as demand rebounds.

Trip.com has said it’s cooperating with the government’s investigation. The company’s stock dove more 16% since the probe was announced a week ago.

Revenue per room—a key hotel metric—was flat across China in 2025, even as other Asian markets saw gains, according to Bloomberg Intelligence. Marriott International Inc.’s revenue per room in China fell 1% most of last year, while Hilton’s China room revenue trailed its regional peers.

The company controls about 56% of China’s online travel market, according to China Trading Desk, and has grown into the world’s largest booking site. Its dominance has helped fuel domestic tourism’s recovery—nearly 5 billion trips were logged in the first three quarters of 2025—but operators say the benefits are being offset by falling room yields.

“The market has developed unevenly and innovation is lacking due to monopolistic practices,” said He Shuangquan, head of the Yunnan Provincial Tourism Homestay Industry Association that represents some 7,000 operators. “The entire online travel agency sector is stagnating in a pool of dead water.”

‘Pick-one-of-two’

The broader challenge is oversupply and cautious consumer spending. In regions like Yunnan, hotel capacity has tripled since the pandemic, just as travelers tightened budgets. Consultants note that while people are traveling more, they’re spending less—leaving hotels slashing rates to fill empty beds and posting billions in losses.

For operators like Huang, the paradox is stark: the platform that delivers customers is also accelerating the race to the bottom. The complaints center around Trip.com’s “er xuan yi,” Mandarin for pick-one-of-two exclusivity arrangements—a practice that Chinese regulators have repeatedly vowed to stamp out.

Trip.com categorizes merchants into tiers with “Special Merchants” enjoying the most visibility and traffic, Yunnan Provincial Tourism’s He said. However, these top-tier merchants are typically prohibited from listing on rival platforms like Alibaba’s Fliggy, ByteDance’s Douyin or Meituan. Merchants who aren’t bound by these exclusive arrangements report being effectively compelled to offer the lowest prices on Trip.com’s online booking platform Ctrip, or risk facing a raft of measures like lowered search rankings.

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Business

CEOs at Davos are buying into the agentic AI hype

Published

1 hour ago

January 21, 2026

Jace Porter

Good morning. The atmosphere here at the World Economic Forum in Davos is all about nervous excitement as the Trump administration descends on the normally quaint but currently chaotic ski town in the Alps.

President Donald Trump will be making remarks just a couple hours from now, and Fortune will be reporting live from USA House on the main promenade, with insights from government officials and chief executives during and immediately following the president’s conversation. Keep an eye on our livestream, here https://fortune.com/2026/01/21/ceos-davos-buy-into-the-agentic-ai-hype/.

Elsewhere around town, CEOs are setting their agendas for the year. Here’s what’s top of mind for a few of them:

This will actually be the year of agentic AI. The first time I heard the term “agentic AI” was at Davos last year. For all the hype around it, does the average CEO really know what it is or how to deploy it? And is AI good enough yet for agents to replace or even significantly assist human employees? The answer appears to be yes. Google Gemini head Demis Hassabis told me that Gemini 3 achieved some milestones that allow agentic AI to truly proliferate in terms of its capabilities. ServiceNow CEO Bill McDermott is also an emphatic “yes,” and says he is already using it to do things like automate his IT department (without doing layoffs, he stresses; he says he has repurposed employees instead). He thinks other CEOs are ready to do the same.

Get ready for Google glasses—for real, this time. A decade ago, Google launched its Google Glass eyewear to widespread mockery. Hassabis thinks the timing was just off; at the time there was no super app to go on the platform. AI has changed that, and Hassabis is bullish on Gemini glasses being the future form for consumer AI. Meta is betting the same thing, and OpenAI is also reportedly considering a super-device, but it doesn’t seem like either can match Gemini’s capabilities any time soon.

There’s artificial intelligence, and now there’s also “energy intelligence.” Schneider Electric CEO Olivier Blum says that nailing energy intelligence is his mission this year. By that he means he wants to capture data from various energy sources into a single “data cube,” filter it, and use agentic AI so customers can manage it all in one place to find opportunities to save power and money. “Our job is to make sure we go to the next level of energy technology to make energy more intelligent,” he told me yesterday. If he can achieve it, he sees a 7%-10% annual growth opportunity ahead.

Greenland: national panic or national security risk? I’ve heard various reactions to President Trump’s desire for a full U.S. takeover of the huge island—from outrage to vigorous support. If he does get his wish (which some here think is likely), could Europe retaliate by making life harder and more restrictive for big U.S. tech companies? That was one CEO’s consideration. Said another: “Clear-eyed people can agree that that is a national security concern. And having a national security concern is not just a U.S. concern, it’s also a NATO concern.” They were optimistic that the in-person meetings this week would help move the matter in a positive direction. You can follow all our Davos coverage—including Fortune live interviews today with Ray Dalio, Dara Khosrowshahi and more—right here.—Alyson Shontell

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

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The markets

S&P 500 futures are up 0.19% this morning. The last session closed down 2.06%. STOXX Europe 600 was down 0.41% in early trading. The U.K.’s FTSE 100 was down 0.02% in early trading. Japan’s Nikkei 225 was down 0.41%. China’s CSI 300 was up o.09%. The South Korea KOSPI was up 0.49%. India’s NIFTY 50 was down 0.3%%. Bitcoin was at $89K.