Southwest Airlines Joins Peers In Slashing 2025 Profit Outlook, Citing Shutdown Pain

2025-12-05 08:10:50

(MENAFN- AsiaNet News)

Southwest Airlines (LUV) has lowered its full-year 2025 earnings before interest and taxes (EBIT) outlook, citing weaker revenue linked to the government shutdown and higher-than-expected fuel expenses.

In an SEC filing on Dec. 5, Southwest now anticipates EBIT of roughly $500 million, down from its earlier estimate of $600 million to $800 million.

Despite the temporary dip in travel demand during the six-week shutdown, Southwest said customer bookings have since recovered to normal levels. The company added that the revised guidance reflects near-term pressures rather than a change in broader demand trends.

LUV stock was down 1.4% in premarket trade on Friday.

This comes after Delta Air Lines, Inc. (DAL) said it expects a $200 million hit to pre-tax profit for the fourth quarter due to disruptions caused by the shutdown.

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