Southwest Airlines announced it will reduce capacity in the second half of 2025, citing weakening domestic bookings and macroeconomic uncertainty, according to CNBC. The airline expects unit revenue to be flat to down 4% and declined to reaffirm its EBIT guidance for 2025 and 2026. The move aligns with similar reductions from United and Delta, which have adjusted forecasts amid unpredictable booking trends. The company is undergoing major strategic shifts, including ending free checked bags, introducing basic economy fares, and phasing out open seating.
