American Airlines (AAL) stock plummeted 5.05% in intraday trading on Tuesday, as concerns mount over the potential impact of persistent air traffic control staffing shortages and outdated infrastructure on airline operations in the U.S.

Lawmakers held a hearing to address the significant challenges facing the Federal Aviation Administration (FAA), including a shortage of around 3,500 fully certified air traffic controllers compared to targeted levels. The National Air Traffic Controllers Association (NATCA) highlighted that controllers are often overworked, using outdated equipment in aging facilities, some over 60 years old.

The FAA's aging systems and infrastructure, including a struggling pilot messaging database and a need to transition from copper wire to fiber optic services, pose potential safety risks and service disruptions for airlines like American Airlines. Airlines are urging urgent emergency funding to boost FAA staffing and infrastructure upgrades to prevent further incidents and delays.