Trump’s US Govt Shutdown Grounds Southwest Airlines as Q1 Revenues Fall $60 Million

Shares of Southwest Airlines fell sharply on Wednesday after the low-cost carrier disclosed that the government shutdown which lasted for 35 days had a larger impact than previously thought.

In a U.S. Securities and Exchange Commission filing, Southwest Airlines indicated that the estimated revenue impact of the shutdown had increased by up to six times. Shares of the low-cost carrier consequently fell by over 5% in early trading to below $55.

Southwest Airlines share price slumped on Wednesday. | Source: TradingView

Southwest Airlines had Expected Negative Revenue Impact, Just not this Big

While reporting earnings last month the low-cost carrier had projected a drop in revenue of between $10 to $15 million. The discount carrier now sees the negative revenue impact of the shutdown rising to around $60 million:

Read the full story on CCN.com.