Southwest to cut flights this year, pulls guidance, citing 'macroeconomic uncertainty'
Southwest Airlines said Wednesday that it will reduce its capacity in the second half of the year, as more signs point to weaker domestic bookings this year.
Southwest Airlines said Wednesday that it will reduce its capacity in the second half of the year, as more signs point to weaker domestic bookings this year.
The airline said it expects unit revenue to be flat to down as much as 4% in the second quarter from a year earlier. Southwest said it is not reaffirming its guidance for earnings before interest and taxes for 2025 and 2026.
“Amid the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends,” Southwest said in a securities filing.
United Airlines and Delta Air Lines earlier this month announced plans to scale back their domestic capacity in the second half of the year. Delta also pulled its full-year forecast while United provided two forecasts, calling the U.S. economy “impossible” to predict.
The carrier’s first-quarter earnings and revenue beat analysts’ expectations.
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