Southwest Airlines cuts outlook after government shutdown
Planes line up on the tarmac at LaGuardia Airport in New York City on November 10, 2025.
Spencer Platt | Getty Images
Southwest Airlines On Friday, it cut its 2025 earnings forecast, citing the slump in demand during the federal government shutdown as the longest-running decline ever.
The carrier said it expects earnings before interest and taxes in 2025 to be about $500 million, down from a previous estimate of $600 million to $800 million, due to lower revenue and higher fuel prices during the shutdown.
“Following the temporary decline in demand associated with the closure, bookings have returned to prior expectations,” Southwest said in a securities filing. he said.
Earlier this week, Delta Airlines He said the closure cost $200 million, but demand looks strong heading into 2026.
The closure disrupted travel as a nationwide shortage of air traffic controllers worsened. The controllers were among federal workers who were required to work despite not receiving regular wages during the more than 40-day shutdown.
The Trump administration has required airlines to shorten schedules and cancel flights, citing increased pressure on air traffic controllers during the shutdown. However, on some days the outages exceeded the required outages.
