US airlines in a recession: Southwest CEO
Southwest Airlines CEO Bob Jordan doesn’t particularly care about technical economic definitions. According to him, the US airline industry is in a recession.
The airline said it expects its revenue per seat mile to fall by up to 4% in the second quarter.
“I don’t care if you call it a recession or not — in this industry that’s a recession,” Jordan said in an interview.
Southwest, which reported its earnings after the bell Wednesday and held its earnings call Thursday afternoon, pulled its guidance for full-year 2025 or 2026 adjusted earnings. The company flew 37 million passengers in the quarter, 9.2% fewer than the same period last year.
Rivals Delta Air Lines and American Airlines also pulled their 2025 guidance, while United Airlines opted to offer dual forecasts instead: one for a normal year and one for a recession.
“I don’t care if you call it a recession or not — in this industry that’s a recession,” Jordan said in an interview.
Southwest, which reported its earnings after the bell Wednesday and held its earnings call Thursday afternoon, pulled its guidance for full-year 2025 or 2026 adjusted earnings. The company flew 37 million passengers in the quarter, 9.2% fewer than the same period last year.
Rivals Delta Air Lines and American Airlines also pulled their 2025 guidance, while United Airlines opted to offer dual forecasts instead: one for a normal year and one for a recession.
