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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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Jensen Huang says AI bubble fears are dwarfed by ‘largest infrastructure buildout in human history’

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Pushing back against growing skepticism regarding the sustainability of artificial intelligence spending, Nvidia CEO Jensen Huang argued against the mountain backdrop of Davos, Switzerland, that high capital expenditures are not a sign of a financial bubble, but rather evidence of “the largest infrastructure buildout in human history.”

Speaking in conversation with BlackRock CEO Larry Fink, the interim co-chair of the World Economic Forum, Huang detailed an industrial transformation that extends far beyond software code, reshaping global labor markets and driving unprecedented demand for skilled tradespeople. While much of the public debate focuses on the potential for AI to replace white-collar jobs, Huang pointed to an immediate boom in blue-collar employment required to physically construct the new computing economy.

“It’s wonderful that the jobs are related to tradecraft, and we’re going to have plumbers and electricians and construction and steel workers,” Huang said. He noted the urgency to erect “AI factories,” chip plants, and data centers has radically altered the wage landscape for manual labor. “Salaries have gone up, nearly doubled, and so we’re talking about six-figure salaries for people who are building chip factories or computer factories,” Huang said, emphasizing the industry is currently facing a “great shortage” of these workers.

Ford CEO Jim Farley has been warning for months about the labor shortage in what he calls the “essential economy,” exactly the type of jobs mentioned by Huang in Davos. Earlier this month, Farley told Fortune these 95 million jobs are the “backbone of our country,” and he was partnering with local retailer Carhartt to boost workforce development, community building, and “the tools required by the men and women who keep the American Dream alive.” 

It’s time we all reinvest in the people who make our world work with their hands,” Farley said.

In October, at Ford’s Pro Accelerate conference, Farley shared that his own son was wrestling with whether to go to college or pursue a career in the trades. The Ford CEO has estimated the shortage at 600,000 in factories and nearly the same in construction.

Huang dismisses bubble fears

Fink brought up the bubble talk for a good reason: Fear of a popping bubble gripped markets for much of the back half of 2025, with luminaries such as Amazon founder Jeff Bezos, Goldman Sachs CEO David Solomon, and, just the previous day in Davos, Microsoft CEO Satya Nadella, warning about the potential for pain. Much of this originated in the underwhelming release of OpenAI’s GPT-5 in August, but also the MIT study that found 95% of generative AI pilots were failing to generate a return on investment. “Permabears” such as Albert Edwards, global strategist at Société Générale, have talked about how there’s likely a bubble brewing—but then again, they always think that.

Huang, whose company became the face of the AI revolution when it blew past $4 trillion in market capitalization (a bar recently reached by Alphabet on the positive release of its Gemini update), tackled these fears in conversation with Fink, arguing the term misdiagnoses the situation. Critics often point to the massive sums being spent by hyperscalers and corporations as unsustainable, but Huang countered the appearance of a bubble happens because “the investments are large … and the investments are large because we have to build the infrastructure necessary for all of the layers of AI above it.”

Huang went deeper on his food metaphor, describing the AI industry as a “five-layer cake” requiring total industrial reinvention, with Nvidia’s chips a particularly crunchy part of the recipe. The bottom layer is energy, followed by chips, cloud infrastructure, and models, with applications sitting at the top. The current wave of spending is focused on the foundational layers—energy and chips—which creates tangible assets rather than speculative vapor. Far from a bubble, he described a new industry being built from the ground up.

“There are trillions of dollars of infrastructure that needs to be built out,” Huang said, noting that the world is currently only “a few 100 billion dollars into it.”

To prove the market is driven by real demand rather than speculation, Huang offered a practical “test” for the bubble theory: the rental price of computing power as seen in the price of Nvidia’s GPU chips.

“If you try to rent an Nvidia GPU these days, it’s so incredibly hard, and the spot price of GPU rentals is going up, not just the latest generation, but two-generation-old GPUs,” he said. This scarcity indicates established companies are shifting their research and development budgets—such as pharmaceutical giant Eli Lilly moving funds from wet labs to AI supercomputing—rather than simply burning venture capital.

Beyond construction and infrastructure, Huang addressed the broader anxiety regarding AI’s impact on human employment. He argued AI ultimately changes the “task” of a job rather than eliminating the “purpose” of the job. Citing radiology as an example, he noted that despite AI diffusing into every aspect of the field over the last decade, the number of radiologists has actually increased. Because AI handles the task of studying scans infinitely faster, doctors can focus on their core purpose: patient diagnosis and care, leading to higher hospital throughput and increased hiring.

Fink reframed the issue, based on Huang’s pushback. “So what I’m hearing is, we’re far from an AI bubble. The question is, are we investing enough?” Fink asked, positing that current spending levels might actually be insufficient to broaden the global economy.

Huang appeared to say: not really. “I think the the opportunity is really quite extraordinary, and everybody ought to get involved. Everybody ought to get engaged. We need more energy,” he said, adding the industry needs more land, power, trade, scale and workers. Huang said the U.S. has lost its workforce population in many ways over the last 20-30 years, “but it’s still incredibly strong,” and in Europe, pointing around him in Switzerland, he saw “an extraordinary opportunity to take advantage of.” He noted 2025 was the largest investment year in venture capital history, with $100 billion invested around the world, mostly on AI natives.”

Huang concluded by emphasizing this infrastructure buildout is global, urging developing nations and Europe to engage in “sovereign AI” by building their own domestic infrastructure. For Europe specifically, he highlighted a “once-in-a-generation opportunity” to leverage its strong industrial base to lead in “physical AI” and robotics, effectively merging the new digital intelligence with traditional manufacturing. Far from a bubble, he seemed to be saying, this is just the beginning.



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Nearly 400 millionaires and billionaires are demanding Davos leaders to tax them more: ‘Tax us. Tax the super rich.’

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While the wealthiest business leaders from U.S. president Donald Trump to Nvidia CEO Jensen Huang touch down in the Swiss town of Davos to discuss the state of the world, a cohort of the ultra-rich are already sounding the alarm. Hundreds of millionaires and billionaires released an open letter in time for the World Economic Forum, calling on leaders attending the conference to fight raging wealth inequality with taxes. 

“Millionaires like us refuse to be silent. It is time to be counted. Tax us and make sure the next fifty years meet the promise of progress for everyone,” the letter stated

“Extreme wealth has led to extreme control for those who gamble with our safe future for their obscene gains. Now is the time to end that control and win back our future.”

So far, nearly 400 millionaires and billionaires across 24 countries have signed the letter condemning extreme wealth, including the likes of Hollywood actor Mark Ruffalo, Disney heirs Abby and Tim Disney, and real estate developer Jeffrey Gural.

The open letter is part of a “Time to Win” campaign, led by wealth redistribution organizations including Patriotic Millionaires, Millionaires for Humanity, and Oxfam. It criticized global oligarchs with riches who have “bought up” democracies, exacerbated poverty, stifled tech innovation, dampened press freedom, and overall, “accelerated the breakdown of our planet.” After all, 77% of millionaires from G20 nations think extremely wealthy individuals buy political influence, and 71% believe those with riches can significantly influence elections, according to a poll conducted for Patriotic Millionaires.

The Time to Win wealthy signatories offer a simple solution: “Tax us. Tax the super rich.”

“As millionaires who stand shoulder to shoulder with all people, we demand it,” the open letter continued. “And as our elected representatives—whether it’s those of you at Davos, local councillors, city mayors, or regional leaders—it’s your duty to deliver it.

Stars and billionaires are calling out the super-rich for being ungenerous 

As the world mints hundreds of thousands of millionaires yearly and billionaire wealth soars to record highs, some leaders can’t stand to stay quiet. Celebrities and the ultra-rich haven’t just sent a message to money-hoarders with the Time to Win letter—some have even called out billionaires in person, questioning their existence. 

“If you’re a billionaire, why are you a billionaire? No hate, but yeah, give your money away, shorties,” Eilish said onstage last year at the WSJ Magazine Innovator Awards with Meta mogul Mark Zuckerberg, worth $214 billion, in attendance. 

Even the most philanthropic members of the ultra-rich club are wary of their peers’ lack of charity. Billionaires have started their own initiatives like Warren Buffett, Melinda French Gates, and Bill Gates’ The Giving Pledge, which attracted more than 250 billionaires who pledged to donate at least half of their wealth during their lifetimes, or in their wills. But efforts have largely fallen short. Last year, French Gates admitted that the signatories haven’t given enough; And in a letter to shareholders, Buffett fessed up to the fact that billionaires aren’t following through. 

“Early on, I contemplated various grand philanthropic plans. Though I was stubborn, these did not prove feasible,” Buffett wrote. “During my many years, I’ve also watched ill-conceived wealth transfers by political hacks, dynastic choices, and, yes, inept or quirky philanthropists.”

Billionaire and millionaire wealth is on the rise 

There’s more people rolling in riches than ever before, and it’s fueling an equity crisis at the bottom of the economic ladder. 

In 2024 alone, the U.S. minted 379,000 new millionaires—over 1,000 millionaires every day—as the proportion of Americans in the ultrawealthy club swelled by 1.5%, according to a 2025 report from investment bank UBS. This cohort held about $107 trillion in total wealth at the end of that year: more than four times the amount they owned at the turn of the millennium. 

In 2000, there were only 13.27 million everyday millionaires, but by the end of 2024, the group swelled to 52 million people worldwide. 

While it might appear that eye-watering riches are spreading out to a larger number of individuals, it’s mainly concentrating at the top. America’s top 20% household earners—averaging a net worth of $4.3 million—accounted for about 71% of the U.S.’s total wealth at the end of 2024, according to 2025 data from the Federal Reserve. 

Meanwhile, the bottom half of American households, averaging about $60,000 in wealth, owned just 2.5% of the country’s wealth. For the vast majority of U.S. citizens, joining the millionaire club—and even more so, the billionaire club—is a total pipe dream.



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Trump fast tracks ‘three-week’ nuclear approval for big tech to fuel AI race

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President Donald Trump offered Silicon Valley an extraordinary deal on Wednesday: Build your own nuclear power plants to fuel AI, and his administration will approve them in just three weeks.

Speaking at the World Economic Forum in Davos, Switzerland, Trump addressed a room of tech executives struggling with an aging U.S. electrical grid.

“I came up with the idea,” Trump said. “You people are brilliant. You have a lot of money. You can build your own electric generating plants.”

Trump talked for about 10 minutes about energy in his speech, making it clear Trump views a straining electric grid as a central economic risk of 2026. As artificial intelligence pushes electricity demand to record highs, the administration is framing power shortages as an existential threat to growth and national security. Slashing approval timelines, Trump argued, is a necessary response to an energy system he said he believes is fundamentally unprepared for the AI era.

“We needed more than double the energy currently in the country just to take care of the AI plants,” Trump said. 

The proposal marks a radical departure from the traditional Nuclear Regulatory Commission (NRC) process, which historically requires four to five years for environmental and design approvals as well as rigorous site selection. Trump claimed that while tech leaders initially “didn’t believe him,” he assured them the government would deliver approvals for oil and gas plants in just two weeks, with nuclear projects following in three.

Trump said he wasn’t “a big fan” of nuclear power before, but now sees it as a newly viable solution due to safety improvements. 

“The progress they’ve made with nuclear is unbelievable,” he said. “We’re very much into the world of nuclear energy, and we can have it now at good prices and very, very safe.” 

While the potential upcoming wave of small modular nuclear reactors (SMR) could receive regulatory approvals in less than two years, there is little basis for going through an approval process with the Nuclear Regulatory Commission in closer to three weeks, and such an expedited process would trigger widespread concerns about safety and environmental risks.

Trump also touted a new energy alliance with Venezuela, noting the U.S. secured 50 million barrels of oil last week following the “end of an attack” on the nation that led to the deposition of President Nicolás Maduro. He said the new cooperation between the two nations would make Venezuela “fantastically well” while driving U.S. gasoline prices toward $2.00 a gallon.

Gasoline prices are the main inflationary measure by which costs have fallen during the first year of the new Trump administration. But they’re nowhere close to $2.00 per gallon. The national average for a gallon of regular unleaded is $2.76 per gallon this week, down 32 cents from a year ago, primarily because of rising OPEC oil production.

But Trump drew a sharp contrast with Europe’s energy landscape. Trump mocked the “Green New Scam,” citing a 64% spike in German electricity prices and the “catastrophic” decline of energy production in the United Kingdom. He targeted the North Sea and the proliferation of wind farms, which he labeled “losers” that “kill the birds.”

“Stupid people buy” wind farms, Trump laughed.



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