American Airlines (AAL) stock plummeted by 5.02% in intraday trading on Friday, underperforming the broader market. This sharp decline came after the Trump administration announced it is ending collective bargaining rights for around 50,000 Transportation Security Administration (TSA) officers who staff airport security checkpoints across the United States.

The decision to remove collective bargaining rights for TSA officers has raised concerns among investors about potential disruptions or labor issues at airports. TSA officers play a crucial role in ensuring smooth operations and security at airports, and any labor disputes or worker dissatisfaction could lead to operational challenges, longer wait times, and potential impacts on air travel demand.

While the Homeland Security Department stated that the move would remove bureaucratic hurdles, the union representing TSA officers, the American Federation of Government Employees (AFGE), condemned the decision as retaliation for challenging the administration's actions targeting federal workers. The AFGE has been vocal in opposing various policies affecting federal employees, setting the stage for potential labor tensions if collective bargaining rights are removed.