Southwest Airlines Joins Peers In Slashing 2025 Profit Outlook, Citing Shutdown Pain
Synopsis
Southwest anticipates EBIT of roughly $500 million for FY2025, down from its earlier estimate of $600 million to $800 million
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.
This comes after 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.
<Get updates to this developing story directly on Stocktwits.<
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.