Southwest Falls on $1 Billion Profit Cut From Tariff Fallout

Southwest Airlines Co. plunged after the carrier said it expects economic turmoil to wipe out as much as $1 billion of its annual pre-tax profit this year and offered shareholders a much-reduced outlook for the balance of 2025.

Earnings before interest and taxes for the year will be $600 million to $800 million, Southwest said in a statement on Wednesday that also included second-quarter results that fell short of analyst expectations.