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2h ago

DOT Warns EAS Subsidies Will Run Out Sunday as Airlines Pledge to Fly at Their Own Risk

DOT says only unpredictable FAA overflight fees remain to cover subsidies, with any continued service reimbursed pro rata.

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A Boeing 737-790 aircraft belonging to Alaska Airlines at Anchorage Ted Stevens International Airport in Anchorage, Alaska, on July 2, 2024.

Overview

  • Transportation Secretary Sean Duffy said funding for the Essential Air Service program will be exhausted on Sunday if the shutdown continues, and DOT told carriers contract obligations will be waived starting Oct. 13.
  • EAS and AEAS rely on congressional appropriations plus FAA overflight-fee receipts, and DOT cautioned that overflight revenue is variable and cannot guarantee full payment.
  • Several operators, including SkyWest, Contour and Alaska Airlines, said they intend to keep serving EAS communities for now despite the risk of nonpayment.
  • The program supports roughly 177 communities nationwide, with heavy reliance in Alaska where many towns lack road access and depend on air links for medical care and commerce.
  • Lawmakers from affected states, including Alaska Senators Lisa Murkowski and Dan Sullivan, are engaging DOT as rural airports brace for potential service disruptions if Congress does not restore funding.