Southwest Airlines cuts earnings outlook on government shutdown demand hit

Airlines

Southwest Airlines cuts earnings outlook on government shutdown demand hit

Published Fri, Dec 5 2025

7:05 AM EST

thumbnailLeslie Josephs@lesliejosephsWATCH LIVE

Key Points

  • Southwest Airlines cut its earnings forecast on a demand dip during the federal government shutdown.
  • Southwest said it expects 2025 earnings before interest and taxes of about $500 million, down from a previous forecast of $600 million to $800 million, citing lower demand during the shutdown and higher fuel prices.
  • Delta Air Lines earlier this week said the shutdown cost it $200 million in profit, adding that demand is strong going into 2026.

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Planes line up on the tarmac at LaGuardia Airport on Nov. 10, 2025 in New York City.

Spencer Platt | Getty Images

Southwest Airlines cut its 2025 earnings forecast on Friday, citing a demand dip during the federal government shutdown, the longest ever.

The carrier said it expects 2025 earnings before interest and taxes of about $500 million, down from a previous forecast of $600 million to $800 million because of lower revenue in the shutdown and higher fuel prices.

"Following the temporary decline in demand related to the shutdown, bookings have returned to previous expectations," Southwest said in a securities filing.

Earlier this week, Delta Air Lines said the shutdown cost it $200 million but demand looks strong going into 2026.

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Airlines

The shutdown disrupted travel as air traffic controller shortages worsened around the country. Controllers were among the federal workers required to work despite not receiving regular paychecks during the more than 40-day shutdown.

The Trump administration required airlines to trim their schedules and cancel flights, though cancellations and delays were higher than the ordered cuts during some of the final days of the shutdown.

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