Southwest Airlines lowers forecasts after government shutdown

Southwest Airlines The company cut its 2025 earnings forecast on Friday, citing lower demand during the federal government shutdown, the longest on record.

The carrier said it expects 2025 earnings before interest and tax (EBIT) of about $500 million, down from a previous forecast of $600 million to $800 million, due to lower revenues during the lockdown and higher fuel prices.

“After a temporary decline in demand associated with the shutdown, bookings have returned to previous expectations,” Southwest said in a securities filing.

Earlier this week, Delta Airlines She said the closure had cost her $200 million, but added that demand looked strong through 2026.

The lockdown has disrupted travel while worsening the shortage of air traffic controllers across the country. The monitors were among federal workers required to work despite not receiving regular paychecks during the shutdown, which lasted more than 40 days.

The Trump administration has asked airlines to reduce their schedules and cancel flights, citing increasing pressure on air traffic controllers in the shutdown. However, on some days the disruptions exceeded the required reductions.