Is the sun setting on the airline industry? Mutliple plane crashes, mechanical failures, and changing policies haven't exactly instilled the best consumer trust. But at least, we can count on an airline to get us to our destination, right? Eh...about that. A major airline announced it was joining its rivals in cutting multiple flights.
This comes amid economic uncertainty for the industry and the country as a whole. Southwest Airlines withdrew its financial forecast for the year. It had forecasted $1.7 billion in earnings before interest and taxes. That was supposed to boom to $3.8 billion in 2026. "Amid the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends," the company said.
It's far from the first airline to do so. Alaska Airlines also pulled its forecast for the year alongside Delta and Frontier. Meanwhile, United Airlines disclosed two different forecasts for the year. Basically, none of these companies know what the year might bring them. With a potential decrease in profits, the airline is joining others in cost saving measures. This includes cutting flights. American Airlines has followed suit recently. The airlines are reducing their flight schedules.
Airlines Makes Changes
"We came off a strong fourth quarter, saw decent business in January, and really domestic leisure travel fell off considerably as we went into the February time frame," American Airlines CEO Robert Isom told CNBC.
Southwest is shaving down its flight schedule for 2025 to save on costs. What this means for people riding the airline or airlines? Less possible flights to needed destinations and most likely, packed flights. If you're planning on traveling, you're going to want to make sure you book your airline ticket in advance. Otherwise, you could be left without options.
The last thing you want to do is not have a flight to your destination.
"With broad economic uncertainty around global trade, growth has largely stalled," Delta CEO Ed Bastian said at the time. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year."
