Southwest Airlines lowered its 2025 earnings before interest and taxes forecast to about US$500 million, citing reduced revenue from the recent government shutdown and higher fuel costs, reports Reuters.

The company had previously projected $600 million to $800 million. Shares fell 2.3 per cent in premarket trading.

The 43-day government shutdown, the longest in US history, disrupted flight operations nationwide. Thousands of aviation staff worked without pay, and the Federal Aviation Administration ordered flight reductions at 40 major airports due to staffing shortages.

Severe winter weather compounded the impact, prompting analysts to cut fourth-quarter profit estimates for US airlines by up to 30 per cent.

JetBlue said shutdown-related cancellations and Hurricane Melissa in Jamaica reduced its available seat mile growth by one point in the fourth quarter.

Delta Air Lines earlier warned of a $200 million hit to its fourth-quarter pre-tax profit from the shutdown.