Southwest Airlines cuts 2025 earnings forecast on shutdown impact

Southwest Airlines Co. (NYSE: LUV) reduced its full-year 2025 earnings forecast due to revenue losses from the government shutdown and higher fuel costs. The airline now expects earnings before interest and taxes, excluding special items, of approximately $500 million for 2025, down from its previous guidance range of $600 million to $800 million.

The company cited lower revenue resulting from the government shutdown as a primary factor in the revised outlook. Southwest also pointed to the impact of higher fuel prices on its financial projections.

The airline noted that booking levels have returned to previous expectations following what it described as a temporary decline in demand related to the shutdown. The company provided this updated guidance in a statement released today.

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