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News Link • Transportation: Air Travel

Southwest Airlines joins rivals Delta, United in cutting flights, scrapping forecasts

• MSN

Southwest Airlines became the latest US carrier on Wednesday to withdraw its financial forecast as President Trump's trade war has created the biggest uncertainty for the industry since the COVID-19 pandemic.

With little clarity on how consumers will behave in the face of a potentially worsening economy, airlines are struggling to accurately forecast their business.

Travel is a discretionary item for many consumers and businesses. With the trade war raising the prospect of slower economic growth and higher inflation, both tourists and corporations are sitting tight, leading to a pullback in travel spending.

Southwest said it is not able to reaffirm its previous forecast of $1.7 billion in earnings before interest and taxes in 2025 and about $3.8 billion in 2026.


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