Southwest this week lowered its earnings forecast for 2025 over the recent federal government shutdown and the rising cost of jet fuel.
In a filing with the U.S. Securities and Exchange Commission, the airline said its full-year earnings before interest and taxes will be about $500 million, down from its prior expectation of $600 million to $800 million. Southwest did not say how much of that hit came from the shutdown alone.
Southwest, like all other U.S. airlines, was forced to cut flights at 40 of the nation’s busiest airports in November as the shutdown cleared the one-month mark. The reductions were put in place to ease the burden on FAA air traffic controllers, who were working without pay.
The carrier said bookings have “returned to previous expectations” since the reduction order was dropped.
Delta reported Wednesday that the shutdown had cost it around $200 million in pre-tax profits.
