Southwest Airlines lowered its 2025 earnings forecast, citing reduced revenue from the recent government shutdown and higher fuel costs. The carrier now expects full-year EBIT of about US$500 million, down from its earlier estimate of $600 million to $800 million, reported Reuters.

Shares of Southwest fell 2.3 per cent in premarket trading after the announcement. The 43-day government shutdown, the longest in US history, disrupted flight operations nationwide and forced the Federal Aviation Administration to order reductions at 40 major airports.

Analysts said the shutdown, combined with severe winter weather, has led to profit estimate cuts of up to 30 per cent for US airlines in the fourth quarter.

JetBlue reported shutdown-related cancellations and the impact of Hurricane Melissa in Jamaica. It expects a one point reduction in available seat mile growth and higher non-fuel unit costs.

Delta Air Lines said earlier this week it anticipates a $200 million hit to fourth-quarter pre-tax profit due to the shutdown.