Government shutdown costs Southwest Airlines USD60 million
Southwest Airlines cut its revenue forecast, revealing it took a $60 million hit from the partial government shutdown.
The announcement saw Southwest shares slide more than 5% in early Wednesday trading.
The airline had previously estimated a revenue loss of just $10-$15 million.
The 35-day government shutdown also pushed back Southwest’s Hawaii flight launch, delaying certification of planes due to furloughed FAA flight safety inspectors.
"The company has continued to experience softness in passenger demand and bookings as a result of the government shutdown," Southwest said in a filing.
Analysts expect the airline to post first quarter revenue of about $5.35 billion.
That could still change as the airline is struggling to get grounded planes in the air after nearly a week of an ‘operational emergency.’
Hundreds of flights have been canceled in the past few days due to more than 40 planes with maintenance issues.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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