Southwest Cuts Forecast After Shutdown Demand Dip And Rising Fuel Costs

Benzinga

Southwest trimmed its 2025 profit outlook to about $500 million after the prolonged federal shutdown hurt demand and pushed fuel costs higher. Travel has since normalized, but the shutdown caused widespread delays and cancellations across the industry, with Delta estimating a $200 million hit.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Southwest Airlines lowered its 2025 earnings forecast to about $500 million

00:07due to reduced demand during the more than 40-day federal shutdown and higher fuel costs,

00:12according to CNBC. Bookings have since returned to expected levels, according to the filing.

00:18Delta said earlier this week that the shutdown cost it $200 million.

00:22The shutdown disrupted air travel as air traffic controller shortages worsened

00:26and controllers worked without pay. The Trump administration required airlines to cut

00:31schedules and cancel flights, and cancellations and delays exceeded required reductions

00:36during some of the final days. For all things money, visit Benzinga.com.

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