Southwest Cuts Capacity Amid Weaker Bookings
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Southwest Airlines announced a reduction in its second-half capacity due to weaker domestic bookings. The airline anticipates flat to 4% lower unit revenue in the second quarter compared to the previous year and has withdrawn its earnings forecast for 2025 and 2026, citing macroeconomic uncertainty and unpredictable booking trends. This follows similar capacity cuts by United and Delta Airlines, reflecting concerns about the US economy.
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