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“Southwest Airlines Cuts Earnings Outlook as Government Shutdown Hits Revenue” 🚨🚨🚨

Southwest Airlines has become the latest major U.S. carrier to quantify the financial damage from the 43-day government shutdown, telling investors Friday that the event weighed heavily on bookings and fuel expenses — and will significantly reduce its yearly profit.

The airline now expects its full-year EBIT to fall to around $500 million, down from its previous projection of $600 million to $800 million. Southwest estimates the shutdown caused $100 million to $300 million in lost earnings due to a sharp — though temporary — drop in travel demand paired with higher fuel costs.

Demand Dropped, Then Rebounded

In its filing, Southwest noted that bookings have now returned to normal levels following the end of the shutdown. Still, the demand disruption was long enough to leave a noticeable dent in the company’s 2025 financials.

Southwest shares slipped around 1% in premarket trading as investors digested the revised outlook.

Airlines Feel the Impact

Southwest isn’t alone. Delta Air Lines earlier in the week reported that the shutdown will cost it roughly $200 million in fourth-quarter earnings, reflecting broader pressure across the aviation sector as federal operations halted, travel demand slowed, and consumer uncertainty climbed.

With carriers finally quantifying the damage, analysts expect more airlines to revise their guidance as the ripple effects of the shutdown become fully visible.