Southwest Airlines Cutting Flights Due to Economic Uncertainty

Southwest Airlines has announced that it is cutting some of its flights due to the impending economic uncertainty in the United States.

According to the Associated Press, the discount airline will reduce its flying schedule in the second part of the year due to decreasing demand. The company also stated that it could not renew its earnings before interest and taxes forecasts for 2025 and 2026 due to “current macroeconomic uncertainty.”

Southwest Airlines is also joining American Airlines, Frontier Airlines, Delta Air Lines, Alaska Airlines, and United Airlines in pulling their 2025 economic forecasts.

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Michael Feroli, chief U.S. economist at J.P. Morgan, said in a note that anti-American sentiment may be driving a travel dropoff, with data suggesting that international visitors to the United States are roughly 5% fewer than a year earlier.

“In recent weeks there have been numerous news stories about tourists canceling trips to the U.S. in protest of the perceived heavy-handedness of recent trade policies,” he said. “This points to potentially another channel to consider in assessing the effects of tariffs on economic activity.”

On April 2, Trump proposed sweeping tariffs that sparked panic in financial markets and raised recession worries. This prompted individuals and corporations to reduce spending, including travel. Trump put a temporary 90-day pause on import levies while increasing his already high tariffs against China.

Southwest Airlines Is Firing Nearly 1,800 Employees

This is just the latest bit of bad news to hit the discount carrier. Earlier this month, Southwest Airlines confirmed that it is firing almost 1,800 employees beginning on April 22.

This is the first time the airline has participated in mass firings. The cuts will affect around 15% of the airline’s corporate and leadership workforce and follow a series of cost-cutting moves to alleviate financial strain.

According to former Southwest Airlines spokesperson Ed Stewart, although the 1,750 layoffs account for only around 2.5% of the company’s total workforce, the announcement contradicts the company’s long-standing goal of avoiding involuntary job cuts.

The changes are expected to be permanent and will primarily affect corporate roles at Southwest’s headquarters and maintenance facility on Shorecrest Drive in Dallas.