Southwest Airlines Cuts Profit Outlook After Shutdown Shock And Fuel Spike

Southwest Airlines Co. (NYSE:LUV) has revised its 2025 profit outlook downward after the U.S. government shutdown led to a decline in demand and an increase in fuel costs.

The airline now expects full-year earnings before interest and taxes, excluding special items, to total about $500 million.

The company previously guided to a range of $600 million to $800 million, a range it reaffirmed with its third-quarter results in October.

Also Read: Southwest Airlines Surprises With Profit, Expects Momentum To Continue Into Q4

What Changed

Southwest stated that the shutdown caused a temporary drop in demand, which lowered revenue, while higher fuel prices added another hit to performance.

The airline said bookings have since climbed back to the level it expected before the shutdown.

The revision illustrates how rapidly airline outlooks can shift when travel disruptions intersect with volatile input costs.

Fuel remains one of the industry’s largest expense lines, and frequent moves in pricing can quickly reshape earnings expectations.

Travel Demand Backdrop

Even with the shutdown disruption, recent passenger flows pointed to continued appetite for travel.

Separate reporting highlighted record U.S. airport throughput after Thanksgiving, raising questions about whether airline shares could find support into 2026. Read more on airport traffic hits and what it could mean for carriers.

LUV Price Action: Southwest Airlines shares were up 3.00% at $36.89 at the time of publication on Friday, according to Benzinga Pro data.

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