Southwest Airlines Joins Peers In Slashing 2025 Profit Outlook, Citing Shutdown Pain

• Southwest said EBIT revision is due to weaker quarterly revenue linked to the government shutdown and higher-than-expected fuel expenses.
• Southwest said customer bookings have since recovered to normal levels.
• The Airline said revised guidance reflects near-term pressures rather than a change in broader demand trends.

Southwest Airlines (LUV) has lowered its full-year 2025 earnings before interest and taxes (EBIT) outlook, citing weaker revenue linked to the government shutdown and higher-than-expected fuel expenses.

In an SEC filing on Dec. 5, Southwest now anticipates EBIT of roughly $500 million, down from its earlier estimate of $600 million to $800 million.

Despite the temporary dip in travel demand during the six-week shutdown, Southwest said customer bookings have since recovered to normal levels. The company added that the revised guidance reflects near-term pressures rather than a change in broader demand trends.

LUV stock was down 1.4% in premarket trade on Friday.

Shutdown Impact On Aviation

U.S. carriers such as Delta, JetBlue, American Airlines, United, and Alaska Air had thousands of cancellations due to the staff shortage at airports caused by the government shutdown that lasted from October 1, to November 12. 

The Trump administration imposed temporary flight cuts at 40 major airports during the longest U.S. government shutdown, blaming shortages of air traffic controllers and security staff. The decision forced airlines to trim schedules and rebook passengers, creating widespread disruptions across the system.

Delta's Woes

Earlier this week, Delta Air Lines, Inc. (DAL) said it expects a $200 million hit to pre-tax profit for the fourth quarter due to disruptions caused by the shutdown.

Delta had more than 2,000 cancellations, CEO Ed Bastian said last month.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits turned 'bearish' from 'neutral'. 

The stock's YTD gains stand at 12%.

Read also: Silver Blasts Above $59, Extending a Record Rally That Has Doubled Prices in 2025

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on