Connect with us
DAPA Banner

Business

Budget predictability, fiscal discipline positive, but liquidity remains key challenge: Neelkanth Mishra

Published

on

Budget predictability, fiscal discipline positive, but liquidity remains key challenge: Neelkanth Mishra
India’s Union Budget has delivered continuity rather than surprise, a factor that market participants are increasingly valuing amid global uncertainty. While some analysts were unsettled by the gross borrowing numbers and fiscal deficit trajectory, Neelkanth Mishra, Chief Economist, Axis Bank & Head Of Global Research, Axis Capital believes the broader fiscal framework reflects hard-earned discipline — even as liquidity management remains a key concern for growth and interest rate transmission.

Responding to concerns around the fiscal deficit and borrowing targets, Mishra said the Budget was largely in line with expectations and that this predictability itself is a positive signal for investors.

“So, the budget in many ways was absolutely predictable. There was not much of a surprise and I mean it in a very good way. The government increasing the visibility and reducing policy uncertainty for businesses and investors is a very positive step. The hard miles on fiscal consolidation are behind us,” Mishra said.

He added that with the pace of fiscal consolidation slowing, the economy has room to move closer to its trend growth rate.

Advertisement

“As you know, reduction in fiscal deficit is a drag on growth. So, clearly now with the deficit barely falling, the economy can start getting closer to its trend growth rates. But in order to close the output gap, clearly we are maybe one-and-a-half years behind where we were supposed to be if Covid had not happened,” he said.


However, Mishra flagged that despite strong fiscal discipline, the benefits are not yet translating into lower borrowing costs — largely due to liquidity conditions and government cash management.
“This remarkable fiscal discipline needs to show up in lower bond yields, lower cost of borrowing and unfortunately, as you also mentioned, the borrowing targets and perhaps excessively conservative plan to finance it… See, what has happened over the past two years is that government cash balances have actually shot up,” he explained.He noted that elevated government cash balances are draining liquidity from the banking system.

“What used to be ₹0.5–1 trillion overnight has now risen to maybe ₹3–3.5 trillion, sometimes even ₹4 trillion. And as the government cash balances go up, they actually go out of the deposits, so out of the banking system. This uncertainty itself has pushed up the cost of liquidity,” Mishra said.

He pointed out that banks are facing higher funding costs, which is distorting bond market behavior.

“If the banks today are borrowing 12-month money at 7%, it is not surprising that they are actually selling their holdings of Government of India bonds to generate that liquidity because those are yielding 6.6–6.7. And not surprisingly, the surprise on the gross borrowing target has meant that the yields today are 6.76,” he said.

Advertisement

According to Mishra, the failure of fiscal discipline to translate into lower rates is now a central policy challenge.

“So, despite fiscal discipline which is politically challenging and very hard to do, despite sticking to the debt consolidation path, the transmission to lower rates is not happening and that is the biggest challenge that confronts RBI and the government because unless you do that, how do you close the output gap,” he said.

He stressed the need for more proactive liquidity management and signalling. “Significant injections of liquidity, lot of signalling, the government’s efforts to manage its cash balance more proactively, all of these are important measures to address this challenge,” Mishra added.

On whether India is nearing a fiscal ceiling without large disinvestment proceeds, Mishra said the country has largely returned to pre-Covid fiscal norms — a notable achievement. “Look, the fiscal deficits at the central level are almost back to pre-Covid levels. This is a remarkable achievement,” he said.

Advertisement

He highlighted that the current deficit includes support to states for capital expenditure.

“So, the 4.3% deficit includes about 0.55% of GDP of the interest-free loans to states for capex. So, if you remove that and you compare it to where we were pre-Covid, they are almost there,” he said. Mishra also noted improvements in fiscal transparency.

“Pre-Covid we actually used to have many of these off-balance sheet issues which I think have been now mostly addressed. So, it is a much cleaner number and on an adjusted basis I think is far superior to the fiscal deficits that we used to work with earlier,” he said.

Looking ahead, he said fiscal consolidation has largely done its heavy lifting, allowing policy to increasingly rely on monetary easing.

Advertisement

“The hard miles on fiscal consolidation have been crossed. The fiscal deficit does not need to fall meaningfully from here. But remember that, if your debt to GDP and if the government is reducing crowding out, it enables the private sector to grow faster,” Mishra said. He pointed to narrowing yield differentials between India and the US.

“So, what used to be 8% in India and 2% in the US is now 6.5% in India and 4.25% in the US. And frankly, if the liquidity situation is managed well, my expectation is that we will be closer to 6% in the next 12 months and therefore, the yield gap narrows even further,” he said.

On capital expenditure, Mishra acknowledged steady growth but emphasized that the quality of spending has improved.

“What we are seeing now is capex starting to happen on railways. There was a challenge with the national highways. The strategic plan was a bit of an issue. It looks like we are done with that and now expenditure can start happening. Tendering for national highways can start to pick up,” he said.

Advertisement

He also highlighted a shift away from wasteful spending.

“The expenditure improvement, quality improvement I was talking about, is that if the government spending on the whole is rising at 7% but capex is rising at 11–12%, it shows that the government is refraining from wasteful expenditure and focusing on what it must do instead of using taxpayer money as its own,” Mishra said.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

Oil, inflation and uncertainty: James Knightley breaks down market risks

Published

on

Oil, inflation and uncertainty: James Knightley breaks down market risks
Heightened geopolitical tensions in the Middle East are keeping global markets on edge, with investors closely monitoring the situation involving Iran as key deadlines draw near. The sharp rhetoric from the United States, coupled with Iran’s steady but firm positioning, has created a climate of deep uncertainty. With no clear direction on how negotiations will unfold, market participants are bracing for volatility.

Speaking with ET Now, James Knightley from ING noted, “It is a really difficult one to call. There is a huge amount of uncertainty, and markets will remain on tenterhooks until the deadline is hit.”

The ripple effects of this uncertainty are being felt in the inflation outlook as well, with central banks increasingly focusing on price stability amid rising energy costs. Supply disruptions linked to the conflict have pushed oil prices higher, reviving fears of inflationary pressures at a time when growth remains uneven. However, the current situation differs from the post-pandemic surge, particularly in terms of demand dynamics. James Knightley pointed out, “The Fed does not have the tools to deal with supply shocks—they cannot print oil,” highlighting the limitations of monetary policy in such scenarios. Importantly, weaker demand conditions could act as a counterbalance, with Knightley adding, “This supply shock is more demand-destructive, so we may not see broad and persistent inflation.”

Crude oil continues to be the most sensitive asset in this environment, reacting swiftly to every geopolitical development. While a potential easing of tensions could lead to a decline in prices, the trajectory remains uncertain. The extent of any correction will largely depend on the level of damage to supply infrastructure and how quickly normalcy can be restored. As James Knightley observed, “Oil could fall if tensions ease, but the extent will depend on the damage to infrastructure,” suggesting that prices may not revert to earlier levels anytime soon.

Advertisement

Given these uncertainties, investors are leaning towards a defensive stance, favouring safer assets amid the lack of clarity. The risk of sudden disruptions or unexpected escalations remains a key concern, even if a temporary agreement is reached. Reflecting the cautious mood, James Knightley added, “Safe haven is still the key right now, as the backdrop remains cautious.” Until there is greater visibility on both geopolitical and economic fronts, markets are likely to stay reactive, with risk aversion shaping investment decisions.


Continue Reading

Business

Intelife to acquire Brightwater commercial linen service

Published

on

Intelife to acquire Brightwater commercial linen service

Brightwater Care Group is set to offload one of its two commercial services to Intelife, after reporting a significant decline in the linen division’s value.

Continue Reading

Business

Inflation scars risk quickly lifting expectations; ECB must be ready to act: policymaker

Published

on

Inflation scars risk quickly lifting expectations; ECB must be ready to act: policymaker


Inflation scars risk quickly lifting expectations; ECB must be ready to act: policymaker

Continue Reading

Business

'AI Security' Emerges As The Next Cybersecurity Theme

Published

on

'AI Security' Emerges As The Next Cybersecurity Theme

'AI Security' Emerges As The Next Cybersecurity Theme

Continue Reading

Business

From Health Scribes to Legal Tech Powering Australia’s AI Boom

Published

on

Melbourne

Melbourne, Australia — Melbourne has solidified its position as Australia’s leading hub for artificial intelligence innovation in 2026, home to about 188 AI companies and roughly 22% of the nation’s clustered AI firms — the largest concentration nationwide. With Victoria’s government-backed AI Mission Statement targeting up to $30 billion in gross state product contributions over the next decade, a new wave of emerging startups is driving breakthroughs in healthcare, legal tech, clinical documentation and beyond.

As global interest in responsible AI grows, Melbourne’s ecosystem benefits from strong university ties, a deep talent pool and proximity between research institutions and commercial ventures. While Sydney often dominates total funding, Melbourne excels in application-layer AI companies focused on real-world problems in medicine, compliance and productivity.

Melbourne
Paul Macallan / Unsplash

Here are 10 rising AI companies in Melbourne making waves in 2026, selected for their recent funding momentum, technological innovation and growth potential:

  1. Heidi Health stands out as one of Melbourne’s fastest-growing AI healthtech stars. The company develops an AI-powered medical scribe platform that transcribes doctor-patient consultations and generates structured clinical notes, helping reduce administrative burdens and combat clinician burnout. Founded in 2021, Heidi has raised nearly $100 million, including a major Series B round valuing the company at around $465-711 million. It now processes millions of patient interactions weekly and adheres to strict standards like HIPAA, GDPR and Australian privacy principles. Investors including Point72, Blackbird and Headline back its vision of becoming an “AI care partner” for every clinician.
  2. Harrison.ai continues to lead in medical imaging AI. The company, co-founded by brothers Dr. Aengus Tran and Dimitry Tran, builds deep learning tools like Annalise.ai to assist radiologists in detecting conditions such as cancer and neurological disorders. It has secured over $240 million in total funding, including a notable Series C raise, and operates in more than 1,000 healthcare facilities across 15 countries. Harrison.ai exemplifies Melbourne’s ability to produce globally scalable clinical AI with measurable impact on diagnostic accuracy and speed.
  3. Affinda harnesses AI to transform document processing and data extraction for businesses. The Melbourne-based startup uses machine learning to automate invoice handling, contract analysis and other paperwork-heavy tasks, helping companies reduce manual errors and accelerate workflows. It has attracted attention for its practical enterprise applications and continues to expand its client base across Australia and internationally.
  4. See-Mode Technologies specializes in AI for vascular and medical imaging analysis, particularly for stroke detection and management. The company has raised funding for its platform that provides real-time insights from ultrasound and other scans, supporting clinicians with faster, more accurate decisions. Its technology highlights Melbourne’s strength in specialized computer vision applications for healthcare.
  5. Vervoe offers an AI-driven skills assessment platform that evaluates job candidates through realistic task simulations rather than traditional resumes. Founded in Melbourne, it uses AI grading to rank applicants based on actual job performance, helping employers make better hiring decisions. The company has gained traction in a competitive recruitment market and continues refining its role-specific assessment tools.
  6. 6clicks has emerged as a trending AI startup focused on governance, risk and compliance (GRC) automation. Its platform leverages artificial intelligence to streamline regulatory compliance, policy management and audit processes for organizations. With rising search interest and reported growth of over 100% in some metrics, 6clicks addresses growing demand for trusted AI tools amid increasing regulatory scrutiny.
  7. Isaacus represents an emerging legal AI player developing foundational models specifically for legal technology. Launched in 2025, the pre-seed funded startup (A$700,000) builds core AI capabilities that enable other companies to create specialized legal tools. Its focus on foundational research positions it as a behind-the-scenes enabler in Melbourne’s growing legal tech scene.
  8. Lyrebird Health develops AI-powered medical documentation tools that transcribe consultations into structured notes, similar to but distinct from broader scribe platforms. The Melbourne startup targets efficiency gains for clinicians and has shown strong early traction in healthtech circles, benefiting from the city’s concentration of medical research institutions.
  9. Everlab takes a preventative approach with its AI-driven personalized health assessments and care plans. The membership-based platform uses artificial intelligence for early disease detection and long-term wellness tracking. Founded in 2023, it appeals to consumers seeking proactive health management and has raised interest for its blend of diagnostics and AI personalization.
  10. Restoke.ai and similar emerging players like Optain Health or Cor focus on niche applications such as retail optimization, ophthalmology imaging or specialized automation. Restoke.ai, for instance, applies AI to hospitality and inventory challenges, while others target computer vision in specific medical fields. These startups illustrate the breadth of Melbourne’s AI innovation beyond headline healthtech names.

Melbourne’s AI ecosystem benefits from supportive infrastructure, including events like the NORTH Link AI Summit and ongoing collaborations with institutions such as universities and innovation centers. Government initiatives emphasize responsible AI deployment, data governance and talent development, helping local startups navigate ethical considerations while scaling.

Funding trends show AI capturing a significant share of Australian venture capital, with Melbourne companies benefiting from local and international investors. However, challenges remain: competition for talent, the need for robust datasets and ensuring AI systems meet high compliance standards in regulated sectors like healthcare and finance.

Many of these rising companies emphasize practical outcomes — reducing doctor burnout, improving hiring accuracy or automating compliance — rather than hype. This focus on measurable ROI has helped attract capital even as global markets remain selective.

Advertisement

Industry observers note that Melbourne’s proximity to research hubs gives it an edge in translating academic work into commercial products, particularly in health AI and applied machine learning. Victoria’s AI Mission Statement aims to accelerate adoption across small and medium enterprises, creating further opportunities for these startups to partner with local businesses.

As 2026 progresses, expect more activity in generative AI agents, computer vision enhancements and industry-specific solutions. Some companies are already exploring international expansion, leveraging Australia’s strong data privacy reputation as a competitive advantage.

Travelers and tech professionals visiting Melbourne can engage with the scene through networking events, pitch nights and conferences focused on AI engineering and design. The city’s livable environment and strong tech community continue to draw talent from across Australia and abroad.

While larger players like Airwallex incorporate significant AI capabilities into fintech, the pure-play startups listed here represent the innovative edge pushing Melbourne forward. Their success could help the city capture more of the projected economic upside from AI in the coming years.

Advertisement

With continued government support and investor confidence, these 10 rising AI companies — and dozens more — position Melbourne as a serious contender in the global artificial intelligence landscape, blending technical excellence with solutions to everyday challenges in healthcare, business and beyond.

Continue Reading

Business

Users Must Switch to Google Messages Now

Published

on

Samsung Messages app

Samsung Electronics has officially announced the discontinuation of its long-standing Samsung Messages app, with the service set to end in July 2026 as the company fully transitions Galaxy smartphone and tablet users to Google Messages for a more consistent Android messaging experience.

Samsung Messages app
Samsung Messages app

The “End of Service Announcement” posted on Samsung’s U.S. support website states that the Samsung Messages application will be discontinued in July 2026. After that date, the app will no longer support regular texting functions except for emergency service numbers or predefined emergency contacts. Users will also be unable to download the app from the Galaxy Store once the shutdown occurs.

Samsung is urging affected owners to switch to Google Messages as their default messaging app immediately “to maintain a consistent messaging experience on Android.” The move affects devices running Android 12 and newer; older devices on Android 11 or below remain unaffected.

The announcement, which surfaced in early April 2026, follows years of gradual shifts. Samsung stopped pre-installing its proprietary Messages app on flagship Galaxy devices starting in 2024 and began setting Google Messages as the default on many models. Newer handsets, including the Galaxy S26 series, already prevent users from downloading Samsung Messages.

Industry analysts view the decision as part of Samsung’s broader strategy to streamline its software ecosystem and lean more heavily on Google’s services. By adopting Google Messages universally, Samsung aims to deliver uniform features across its vast Galaxy lineup while reducing development and maintenance costs for a separate app.

Advertisement

Google Messages offers several advantages that Samsung highlighted in its notice. These include robust RCS (Rich Communication Services) support that works more consistently across carriers, advanced AI-powered spam detection, Gemini integration for smart replies and message suggestions, improved end-to-end encryption options, and better multi-device connectivity with tablets, wearables and computers.

For many long-time Galaxy users, the news stirs nostalgia mixed with practical concerns. Samsung Messages, which dates back more than 15 years in various forms, featured a clean interface, customizable themes, scheduled messages and strong integration with other Samsung apps and services. Some users preferred its simpler design or specific features not fully replicated in Google’s offering.

Reaction on social media and Samsung community forums has been swift. Posts under hashtags like #SamsungMessages and #GoogleMessages range from acceptance (“It was inevitable”) to frustration over losing familiar customization options. One Reddit user noted, “Samsung Messages felt more ‘Samsung’ — now everything is just Google.” Others welcomed the change for better RCS reliability and spam protection.

Samsung has provided guidance for a smooth transition. Users can open the Google Messages app, set it as default through phone settings, and transfer conversations where possible. On some older devices (particularly those on Android 12 or 13), the Google Messages icon may not automatically appear on the home screen after switching. The company also warned that ongoing RCS chats might experience temporary disruption until both parties migrate to Google Messages.

Advertisement

To switch manually:

  1. Download or open Google Messages from the Play Store or Galaxy Store if not already installed.
  2. Go to phone Settings > Apps > Default apps > SMS app and select Google Messages.
  3. Grant necessary permissions for contacts, phone and notifications.
  4. Back up important conversations if desired, though full transfer functionality varies.

After July 2026, Samsung Messages will cease to function for standard use, and the app will be removed from download platforms. Emergency texting capabilities will remain as a limited fallback.

The change aligns with broader industry trends. Google has pushed its Messages app as the standard for Android RCS, which brings iMessage-like features such as high-resolution media sharing, typing indicators, read receipts and group chat enhancements to SMS. Apple’s recent adoption of RCS in iOS has further standardized rich messaging across platforms, reducing the “green bubble” divide.

Samsung’s decision also reflects the declining need for proprietary apps in a Google-dominated Android world. The company has similarly favored Google services in other areas, including its keyboard, calendar and photo apps on many devices.

For businesses and power users, the shift means potential adjustments in workflow. Those relying on Samsung-specific features like advanced scheduling or integration with Bixby routines may need to explore Google Messages alternatives or third-party apps. However, most everyday texting, MMS and RCS functions should improve or remain comparable.

Advertisement

Samsung has not specified an exact date in July, directing users to check the Samsung Messages app itself for the precise shutdown timeline. The company emphasized that the transition is designed to be seamless for the vast majority of its hundreds of millions of Galaxy users worldwide, though the announcement focuses on the U.S. market with possible similar rollouts globally.

Tech experts recommend acting early. Switching now allows time to familiarize oneself with Google Messages features, resolve any minor glitches, and ensure contacts also update if needed for full RCS benefits. Users with multiple Samsung devices — phones, tablets and Galaxy Watches — will benefit from tighter integration once unified under Google Messages.

The discontinuation comes amid Samsung’s heavy investment in AI across its ecosystem. Google Messages leverages Gemini for contextual suggestions, message summarization and even generative replies, features that align with Samsung’s own Galaxy AI ambitions on devices like the Galaxy S series and foldables.

As the July 2026 deadline approaches — roughly three months from early April — Samsung is expected to roll out in-app notifications and prompts encouraging the switch. Support pages and community forums will likely see increased traffic with troubleshooting tips.

Advertisement

For those reluctant to change, limited options exist. Third-party messaging apps can serve as alternatives, but they may lack deep system integration or carrier-level RCS support. Sticking with Samsung Messages past the cutoff will not be viable for normal communication.

The move underscores the evolving nature of smartphone software. What once felt like a core Samsung experience is giving way to a more standardized, Google-powered foundation that promises better long-term support, security updates and feature parity with the wider Android ecosystem.

Galaxy owners in the U.S. and beyond should prepare now to avoid last-minute disruptions when the app goes dark. Downloading Google Messages, setting it as default and exploring its tools will ensure texting continues uninterrupted.

Samsung’s End of Service notice reassures users that the change prioritizes a better overall experience. With enhanced security, AI assistance and cross-platform compatibility, Google Messages positions Galaxy devices for the next era of mobile communication as RCS becomes the norm and AI transforms everyday interactions.

Advertisement

Whether you loved the familiar Samsung interface or are ready for modern upgrades, the clock is ticking. July 2026 marks the end of an era for Samsung Messages — and the beginning of a more unified Google-powered messaging future on Galaxy phones.

Continue Reading

Business

D-Street grasps at ceasefire straw, rebounds 1% from early losses

Published

on

D-Street grasps at ceasefire straw, rebounds 1% from early losses
Mumbai: India’s key stock indices ended over 1% higher on Monday, recouping early losses, as a ceasefire proposal in the West Asia conflict sparked a pullback from the oversold levels.

NSE’s Nifty rose 255.15 points, or 1.1%, to close at 22,968.25. BSE’s Sensex rose 787.3 points, or 1.1%, to end at 74,106.85. Both indices were down as much as 0.8% earlier in the day.

Monday’s market recovery was driven by a mix of fundamental and technical factors, said Shrikant Chouhan, head of Equity Research, Kotak Securities.

“Short covering from oversold levels, along with crude staying below $110 despite Trump’s threats, lifted sentiment and triggered buying interest,” he said.

Advertisement

The India VIX slipped 0.2% to 25.47 on Monday, a modest decline, pointing to lingering caution among investors despite the market’s rebound.


The ceasefire plan – including an end to the hostilities between the US and Iran and reopening the Strait of Hormuz – comes ahead of Donald Trump’s Tuesday deadline to Tehran to allow passage through the key shipping route.
At home, foreign portfolio investors net sold shares worth ₹8,167 crore. Domestic institutions were buyers worth ₹8,089 crore. Broader market indices Nifty Midcap 150 gained 1.4%, and Nifty Small-cap 250 rose 1.1% on Monday. Out of the total 4,544 stocks traded on BSE, 3,193 advanced and 1,173 fell at close.

“The recent decline has lost momentum over the past few sessions, opening room for a rebound,” said Chouhan.

The Nifty could move towards 23,200 in the near term, where profit booking may emerge, he said.

Elsewhere in Asia, Japan gained 0.55% and South Korea advanced 1.4%. Stock markets in China, Hong Kong and Taiwan remained shut on Monday. The pan-Europe index Stoxx 600 was down 0.2% at the time of going to print.

Advertisement
Continue Reading

Business

Jewellery stocks rise on talk of cut in base import price

Published

on

Jewellery stocks rise on talk of cut in base import price
Mumbai: Market participants took a shine to shares of gold jewellers on Monday as strong business updates and reports on reduction in base import prices of precious metals suggest improved prospects for these companies.

Analysts expect sustained demand for gold jewellery in the coming quarters due to the summer wedding season, as well as other occasions like Akshaya Tritiya, Baisakhi and Rath Yatra.

Shares of Senco Gold, which reported its fourth-quarter business update on Saturday, ended 12.1% higher on Monday. Other companies like Thangamayil Jewellery, Kalyan Jewellers India, Titan Company, Sky Gold And Diamonds and PC Jeweller ended 3-7% higher.

Senco said in its exchange filing that on a standalone basis, it achieved a wedding season-led growth of 46% year-on-year in the fourth quarter, while PC Jeweller saw standalone revenue growth of approximately 32% year-on-year, in this period.

Advertisement

“Reports of a reduction in base import prices for gold and silver lifted jewellery stocks on Monday, as lower import prices are expected to ease input costs and support margins. Positive business updates from Senco Gold and PC Jeweller further supported sentiment,” said Arijit Malakar, equity research analyst, Ashika Stock Broking.


“The overall market fall due to the West Asia conflict has led to consolidation in gold jewellery stocks. However, with global gold prices cooling, Indian Jewellers are now restocking at favourable levels,” said Netra Deshpande, research analyst, Mirae Asset ShareKhan.
She believes that sustained demand from the extended wedding season and upcoming festivals like Akshaya Tritiya will continue to support growth in the coming quarters as well.

Continue Reading

Business

SFO Security Lines Stay Under 15 Minutes While TSA Chaos Hits Other Airports Amid Government Shutdown

Published

on

United Airlines passengers check in for flights at San Francisco International Airport on April 19, 2022

SAN FRANCISCO (AP) — While travelers at many major U.S. airports have endured hours-long security lines due to the ongoing partial government shutdown, San Francisco International Airport has largely escaped the chaos, with average TSA wait times remaining steady at 10 to 15 minutes and all checkpoints operating normally as of early April 2026.
SFO, one of the busiest airports in the country and a key international gateway for the Bay Area, participates in the Transportation Security Administration’s Screening Partnership Program. This allows a private contractor, Covenant Aviation Security, to handle checkpoint screening under TSA supervision. Because the screeners are not federal TSA employees, they continue to receive uninterrupted pay during the funding impasse that has affected direct TSA operations elsewhere.

United Airlines passengers check in for flights at San Francisco International Airport on April 19, 2022
United Airlines passengers check in for flights at San Francisco International Airport on April 19, 2022

Airport officials and local reports confirm that security lines at SFO have stayed consistent with typical operations, even as spring break travel overlapped with the shutdown’s impact on federal staffing. In contrast to airports like Phoenix Sky Harbor or others reporting waits of 30 minutes or more — and occasional checkpoint closures — SFO has maintained smooth flow. Peak waits rarely exceeded 20-25 minutes, with many travelers clearing security in under 10 minutes during off-peak hours.
“While we’ve seen and heard about the long security checkpoint lines over the last few weeks at major airports around the country, SFO is NOT experiencing this issue,” the airport posted on social media in late March, highlighting its private contractor model as the reason for stability.
Current real-time data shows average security waits at SFO around 12 minutes overall. Early morning hours from midnight to 3 a.m. often see waits as low as 1-3 minutes, while busier slots like 6-9 a.m. may reach 15-25 minutes. PreCheck lanes and CLEAR biometric services further reduce times for eligible passengers, sometimes to just 2-5 minutes. One checkpoint in Terminal 3 (Boarding Area F3) has been noted as occasionally closed, but alternatives remain open and all gates stay accessible.
United Airlines, SFO’s largest carrier, recently rolled out a helpful TSA wait time tracker in its mobile app for SFO and six other hubs. The feature provides estimated waits for both standard and PreCheck lanes, helping passengers plan arrivals more precisely amid broader travel uncertainties.
SFO handled approximately 54.5 million passengers in 2025, a 4.3% increase from 2024, with strong growth in domestic traffic. The airport serves as a major hub for United Airlines and a critical link for transpacific routes to Asia, which accounted for a significant share of its international traffic. Despite the shutdown, security screening screened millions without the widespread disruptions seen nationally.
The partial government shutdown, now stretching into April, has forced TSA officers at direct federal airports to work without pay, leading to increased callouts, fatigue and longer lines. Some airports consolidated lanes or temporarily closed checkpoints. SFO’s model has provided a buffer: private screeners, paid through separate funding, reported full staffing and normal operations.
Airport spokesman Doug Yakel noted that contracted officers have kept average peak wait times under 10 minutes in many recent periods, even while processing high volumes. This stands in stark contrast to reports from other hubs where waits stretched to hours, prompting airlines to advise arriving three hours early for domestic flights.
Travelers at SFO praised the relative ease. Social media posts and local news shared stories of quick passages through security, with some contrasting their experience favorably against friends flying out of TSA-operated airports. “No lines at SFO — right through security,” one passenger remarked after a recent trip.
SFO features multiple security checkpoints across its terminals: A and G in the International Terminal, B and C in Terminal 1, D in Terminal 2, and F1 plus the occasionally closed F3 in Terminal 3. All offer TSA PreCheck, Priority lanes and CLEAR where available. Hours vary slightly by checkpoint, with most opening as early as 3:15 a.m. and some operating nearly 24 hours.
In addition to standard procedures, SFO supports TSA ConfirmID, a fee-based identity verification service for passengers without REAL ID-compliant documents. The airport also uses advanced imaging technology and continues promoting efficient packing to speed screening.
Beyond security stability, SFO faces other operational pressures. A new FAA rule and temporary runway project have reduced hourly arrivals from 54 to 36 planes, potentially causing more flight delays independent of security. Officials emphasize that these changes do not affect checkpoint lines.
For passengers, the airport recommends arriving at least two hours before domestic flights and three hours for international, though the consistent security times mean many can adhere to standard guidelines without extra buffer for shutdown-related delays. The MyTSA app, United’s tracker and SFO’s own flight information displays provide helpful updates.
The Screening Partnership Program at SFO dates back years and makes it the largest U.S. airport using private contractors for screening. Only a handful of airports, including Kansas City and a few smaller ones, share this setup. During previous shutdowns, the model similarly prevented major disruptions.
Local leaders and travelers have noted the irony: while the shutdown highlights vulnerabilities in federal TSA staffing, privatized operations at places like SFO demonstrate an alternative that maintains reliability. However, all checkpoints still follow strict TSA security protocols and oversight.
As summer travel approaches, SFO continues investing in passenger experience with expanded dining, art installations and efficient terminal layouts. The airport consistently ranks well in traveler satisfaction surveys among large U.S. hubs.
Travel tips for SFO remain standard but especially useful now: enroll in TSA PreCheck or CLEAR for faster processing, pack liquids and electronics accessibly, wear slip-on shoes, and check real-time wait data before heading to the airport. Those without PreCheck should factor in potentially longer standard lanes during peak times like early mornings and evenings.
The broader context at SFO underscores a national conversation about airport security staffing. While most airports rely on federal TSA employees facing financial strain without pay, the private model at SFO has kept lines moving and morale steadier among screeners.
Passengers navigating the Bay Area’s busy travel season can take some comfort in SFO’s resilience. As the shutdown persists without a clear resolution, airports without direct TSA staffing continue to serve as a relative bright spot for efficient security.
SFO’s role as a vibrant international gateway — connecting Silicon Valley innovation with global destinations — remains strong. With wait times stable and innovations like United’s app tracker rolling out, the airport aims to keep travelers informed and moving smoothly even amid federal uncertainties.
Many who flew through SFO in recent weeks shared gratitude online for the predictable experience. “While friends complained about three-hour TSA lines elsewhere, we were at our gate in 45 minutes total at SFO,” one Bay Area resident posted.
As conditions evolve, travelers should monitor official SFO channels and airline apps for the latest advisories. For now, San Francisco International stands out as a smoother option for those able to route through the West Coast hub.
Phoenix Sky Harbor and other TSA-direct airports have seen fluctuating improvements with auxiliary support like ICE agents, but SFO’s private contractor advantage has provided consistent relief without such interventions.
With passenger numbers rebounding and technology enhancements in place, SFO positions itself well for the busy months ahead. The airport’s ability to maintain normal wait times during a national staffing crunch serves as a case study in operational resilience.

Continue Reading

Business

Travelers Face Delays as Staffing Crisis Hits Peak Season

Published

on

People wait in line at an Enterprise rental agency at Miami International Airport in April 2021

MIAMI — Travelers at Miami International Airport encountered unpredictable security lines and mounting frustration in recent weeks as a partial government shutdown strained Transportation Security Administration operations during one of the busiest travel periods of the year.

People wait in line at an Enterprise rental agency at Miami International Airport in April 2021
GETTY IMAGES NORTH AMERICA / JOE RAEDLE

Long queues snaked through terminals at MIA and neighboring Fort Lauderdale-Hollywood International Airport in March 2026, with some passengers reporting waits of up to 35 minutes or more during morning peaks. The disruptions coincided with spring break crowds, East Coast weather delays and a federal funding impasse that left thousands of TSA workers unpaid and prompted hundreds of call-outs or resignations nationwide.

As of early April 2026, conditions at MIA have largely stabilized. Real-time data from the airport’s official website shows standard security checkpoint waits ranging from 8 to 18 minutes depending on the lane, with TSA PreCheck and CLEAR lanes often clearing in under 5 minutes. Checkpoint 1 remained closed in recent updates, while others operated with fluctuating but manageable volumes. Immigration processing, however, continued to see longer delays, sometimes exceeding 45 minutes.

The partial shutdown, which affected Department of Homeland Security funding, forced many TSA officers to work without pay since mid-February. Union leaders described the situation as “dire,” noting more than 450 officers had quit nationally since the impasse began. Absenteeism spiked, leading airports across the country — including major hubs like Atlanta and Houston — to post waits of an hour or longer on some days. South Florida airports experienced similar volatility, though MIA appeared to fare better than many peers.

Miami-Dade Aviation Department communications director Greg Chin told local media that early morning lines in mid-March occasionally stretched to 18-35 minutes due to staffing shortages. By midday, waits typically dropped significantly. Some checkpoints, such as one near dining options, stayed closed temporarily as managers shifted personnel. Airport officials urged passengers to arrive early and monitor the MyTSA app or MIA’s website for live updates.

Advertisement

President Donald Trump proposed deploying Immigration and Customs Enforcement agents to assist at congested airports, but MIA and FLL officials confirmed they had not been notified of any such assignments as of late March. Travelers expressed mixed reactions: some appreciated the potential backup, while others worried about added complications at an already busy international gateway.

Spring break 2026 amplified the pressure. MIA handled surges of tourists drawn to South Florida’s beaches and events, with security lines averaging around 30 minutes during peak evening hours in mid-March according to some reports. Officials implemented operational adjustments to improve passenger flow, including better lane management and encouragement of trusted traveler programs.

TSA PreCheck emerged as a key mitigator. Enrolled passengers frequently cleared screening in 1-5 minutes, even during busier periods. In February, the agency expanded TSA PreCheck Touchless ID at MIA, allowing eligible travelers to use facial recognition or mobile boarding passes for even faster processing. The technology rollout is part of a broader initiative to equip dozens more airports with biometric tools aimed at reducing document checks by up to 30%.

Despite the challenges, many recent visitors reported smoother experiences entering April. Reddit users and social media posts from early April described TSA lines at MIA as “surprisingly fast,” with some clearing from curb to concourse in as little as 13 minutes. One traveler called it “the shortest easiest line I’ve ever had at this notorious TSA checkpoint.” Real-time trackers like Flightqueue.com showed standard waits consistently under 15 minutes on multiple days, a notable improvement from March peaks.

Advertisement

Weather compounded problems earlier in the season. Thunderstorms and winter systems delayed or canceled hundreds of flights regionally, forcing rebookings and adding congestion. Airlines reduced schedules in some cases to ease pressure on air traffic control, which also faced unpaid staff. FlightAware data captured thousands of national disruptions during the height of the crisis.

MIA officials emphasized proactive measures. The airport’s mobile app provides real-time checkpoint wait times, interactive maps and flight status alerts. Passengers can scan boarding passes for personalized guidance. TSA recommends using the MyTSA app to check historical busyness by day and time, review the 3-1-1 liquids rule and prepare for screening to minimize delays.

Travel experts advise arriving at least two to three hours early for domestic flights and longer for international departures, especially during holidays or when staffing issues persist. Enrolling in TSA PreCheck or CLEAR can save significant time for frequent flyers. Removing liquids, electronics and outer layers in advance also speeds the process.

The funding standoff highlighted vulnerabilities in the aviation security system. TSA employs roughly 64,000 officers nationwide, many of whom felt “abandoned” during the unpaid period, according to union statements. Even after resolution, full staffing recovery could take days or weeks as agencies process back pay and rehiring.

Advertisement

As conditions normalize in April, MIA continues handling millions of passengers annually as South Florida’s primary international gateway. The airport serves major carriers including American Airlines, with extensive connections to Latin America and the Caribbean.

For the latest updates, travelers should check miami-airport.com/tsa-waittimes.asp or the TSA website. Officials continue monitoring operations closely and adjusting staffing as needed.

While the worst of the shutdown-related chaos appears to have eased at MIA, unpredictable variables like weather, holidays and federal budget negotiations mean vigilance remains essential. Passengers who plan ahead — using apps, trusted traveler programs and realistic arrival buffers — report the smoothest journeys through one of the nation’s busiest airports.

In the end, the recent strains at Miami International Airport’s TSA checkpoints served as a reminder of the human element behind airport security. Officers working extended hours without timely pay kept the lines moving as best they could, while millions of travelers adapted with patience and preparation. As federal talks progress, both sides hope to avoid repeating the disruptions that turned routine screenings into headline-making ordeals during spring break 2026.

Advertisement
Continue Reading

Trending

Copyright © 2025