Southwest Air Drops on $60 Million Hit From U.S. Shutdown
- Demand, bookings remained weak after stalemate ended
- Revised outlook comes amid increased aircraft groundings
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Southwest Airlines Co. slid after warning that the U.S. government shutdown hit sales harder than previously estimated.
The political stalemate that ended last month will reduce first-quarter revenue by $60 million as the aftereffects lingered on, Southwest said in a regulatory filing Wednesday. When the discounter reported earnings late last month, it estimated the impact would be $10 million to $15 million for Jan. 1 through Jan. 23. Uncertainty over whether there would be a second shutdown hurt demand.