Government Shutdown Cost Southwest Airlines $50 Million More Than Estimated

Southwest Airlines now says the government shutdown will cost the company around $60 million in first quarter revenue losses, up from estimates of $10-$15 million previously stated by the company, according to new SEC filings.The company states that the underestimation was due to a continued softness in passenger demand and booking as a result of the shutdown. Based on current trends and the latest information regarding the shutdown's effect, Southwest now predicts its year-over-year growth to increase by three to four percent – down from previous predictions of four to five percent growth.Southwest Airlines' stock was down 4.6 percent Wednesday morning.A clearer view of the shutdown's impact on Southwest comes in the middle of a tough week for the airline. The airline has also found itself at the center of a year-long investigation by the Federal Aviation Administration into how it calculates baggage weight and the impact it could have on how pilots respond to emergencies, according to the Wall Street Journal.  Continue reading...

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