Southwest Airlines Withdraws Profit Forecast Amid Economic Uncertainty

Southwest Airlines has retracted its profit projection for 2025 and 2026 due to economic uncertainties. Initially, it projected $1.7 billion in 2025 and $3.8 billion in 2026 earnings. The airline attributes the forecast withdrawal to unpredictable booking trends exacerbated by trade conflicts and macroeconomic instability.

Southwest Airlines announced on Wednesday that it has pulled its profit outlook for the years 2025 and 2026. The decision follows macroeconomic uncertainties that have disrupted booking patterns, making reliable forecasting a challenge.

Originally, the Texas-based airline anticipated earnings before interest and taxes of $1.7 billion this year and $3.8 billion for the next. However, these estimates are now being reconsidered as global economic conditions remain unstable.

The company's decision echoes the broader trend within the airline industry, where financial forecasts are increasingly unpredictable amid trade tensions initiated under President Donald Trump's administration.

(With inputs from agencies.)