The US Department of Transportation has notified the airlines currently operating routes subsidised through the Essential Air Service (EAS) and Alternate Essential Air Service (AEAS) programmes that funding for both will lapse on October 12, 2025, due to the ongoing US government shutdown. If the government does not reopen by then, any obligations under the current contracts and grant agreements will be waived effective October 13.

"Air carriers that continue to operate EAS flights beyond October 12, 2025, would do so at their own risk as the Department may not be able to pay the contracted subsidy," the regulator warned. "If air carriers continue to operate EAS flights during a lapse in funding, the Department will pay all valid claims on a pro rata basis based on the amount of overflight fees receivable and other budgetary resources available."

EAS and AEAS contracts are funded from two sources: government appropriations and overflight fees collected by the Federal Aviation Administration. The former source is currently frozen until Congress agrees on a new budget. The revenues from the latter are available, but the DOT said the volume of payments was unpredictable and varying by the day, making any planning difficult.

According to the last publicly available EAS and AEAS status report for the year started on October 30, 2024, eleven US carriers currently hold EAS contracts with a total of USD233.9 million in annual subsidies. A further USD37.2 million per year is disbursed to Contour Airlines and Advanced Air through AEAS contracts, which allow for more flexibility in terms of the types of services provided. The largest recipients of EAS and AEAS funds per year are SkyWest Airlines (USD84.7 million), Contour Airlines (USD58.3 million), and Southern Airways Express/Mokulele Airlines (USD48.1 million).

"Contour Airlines recognises the vital nature of the air service we have been entrusted to provide to rural America. Accordingly, Contour will continue to operate its full flight schedule during the federal government shutdown," the airline's CEO, Matt Chaifetz, said in a statement to The Parkersburg News and Sentinel, a local newspaper in one of the EAS communities.

"We are working with each community and evaluating our capabilities in the event of a longer-term government shutdown. It is our intent to honour our service commitments, including those under the Federal EAS programme, who rely on SkyWest’s reliable air service as an essential economic lifeline," SkyWest told ch-aviation in a statement.

"We remain committed to maintaining regional air connectivity for the Essential Air Service communities we serve through Mokulele Airlines. Despite this potential funding interruption, we will continue flying all EAS routes with full scheduled service as planned. We’re working closely with the Hawaii's Department of Transportation concerning airport operations," Mokulele Airlines told ch-aviation. The parent brand, Southern Airways Express, will also continue mainland operations.

ch-aviation has reached out to all EAS operators in the US for comment on the future of their subsidised routes after October 12, 2025.