Southwest Airlines Co (NYSE:LUV), American Airlines Group Inc (NASDAQ:AAL, ETR:A1G) and Alaska Air Group (NYSE:ALK) have joined other major US airline carriers in pulling their 2025 profit outlook amid economic uncertainty and weaker-than-expected travel demand.
Handing down its first quarter earnings on Wednesday evening, Southwest noted difficulties in forecasting due to “short-lived booking trends.”
It has also said it is reducing capacity in the second half of the year but expects full-year 2025 capacity to be up roughly 1% year-over-year.
American Airlines said it intends to provide a full-year outlook “as the economic outlook becomes clearer.”
It expects its adjusted earnings per share (EPS) to be between $0.50 and $1 for Q2, at the midpoint below the consensus of $0.96.
Alaska Air, meanwhile, warned that it expects a revenue hit of about 6 percentage points for the second quarter of 2025 compared to last year.
For Q2, the airline expects adjusted EPS between $1.15 and $1.65, significantly below the consensus of $2.47 per share.
Following their quarterly updates, shares of Southwest traded down 1.6% at $25, American was down 0.4% at $9, and Alaska Air Group plummeted 11.7% to $41.