Hundreds of flights at the busiest airports in the U.S. are being canceled this weekend as airlines reduce air service due to the ongoing government shutdown. Initial reports show that the reduction hasn't yet caused widespread disruptions, but analysts warn of escalating effects as the Thanksgiving holiday approaches.

Over 1,000 flights were grounded on the first day of the Federal Aviation Administration's (FAA) slowdown, with more than 700 canceled specifically on the typically slower Saturday. Currently, the FAA is reducing flights by 4% at 40 targeted airports, with plans to increase this to 10% in the coming week.

Transportation Secretary Sean Duffy has indicated that if the government shutdown continues, further cuts may be necessary due to the rising number of air traffic controllers calling in sick amidst financial strain from prolonged unpaid work. Many have resorted to taking second jobs to make ends meet, contributing to ongoing staffing shortages.

Although some passengers reported smooth travel on the first day of the changes, uncertainty looms over future cancellations, making many anxious about the status of their flights. Reports of increased one-way rental car bookings suggest that some travelers are looking for alternatives to cancelled flights.

The airline disruptions could ripple beyond air travel, particularly impacting supply chains as nearly 50% of U.S. air freight is carried on passenger aircraft. Experts warn that potential shipping costs may rise, leading to higher prices in stores. The effects could extend to tourism and local economies, hitting hotel and city taxes hard.

As the shutdown endures, the aviation sector may find itself facing a more significant challenge, affecting everything from business travel to holiday logistics.