Planes line up on the tarmac at LaGuardia Airport on November 10, 2025 in New York.
Spencer Platt | Getty Images
Southwest Airlines on Friday lowered its 2025 profit forecast, citing a drop in demand during the federal government shutdown, the longest on record.
The carrier said it expects earnings before interest and taxes of about $500 million for 2025, down from a previous forecast of $600 million to $800 million, due to lower revenue related to the shutdown and higher fuel prices.
“After the temporary drop in demand related to the shutdown, bookings returned to previous expectations,” Southwest said in a securities filing.
Earlier this week, Delta Airlines said the impasse cost it $200 million, but added that demand looked strong through 2026.
The shutdown disrupted travel as the shortage of air traffic controllers worsened across the country. The controllers were among the federal workers called to work even though they did not receive regular pay during the more than 40-day shutdown.
The Trump administration has asked airlines to reduce schedules and cancel flights, citing increased pressure on air traffic controllers during the shutdown. However, on some days the disruptions exceeded the required reductions.