Planes line up on the tarmac at LaGuardia Airport in New York City on November 10, 2025.
Spencer Pratt | Getty Images
southwest airlines on Friday cut its 2025 revenue forecast, citing a drop in demand due to the longest federal government shutdown in history.
The company said it expects profit before interest and taxes to be approximately $500 million in 2025 due to lower revenue due to the grounding and higher fuel prices, and has revised its forecast downward to $800 million from its previous forecast of $600 million.
“Reservations have returned to previous expectations following a temporary decrease in demand related to the shutdown,” Southwest Airlines said in a securities filing.
Earlier this week, Delta Air Lines said it had suffered a $200 million loss due to the grounding, but that demand looked strong heading into 2026.
The closure disrupted travel as the shortage of air traffic controllers worsened nationwide. Air traffic controllers were among the federal employees required to work during the shutdown, which lasted more than 40 days, even though they did not receive regular paychecks.
The Trump administration asked airlines to adjust schedules and cancel flights, but cancellations and delays exceeded the ordered reductions in some of the final days of the shutdown.
