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.