Southwest Airlines Cuts Flights Amid Economic Uncertainty

Major U.S. airlines, including Southwest, American, Delta, and Alaska, are reducing domestic flight schedules and withdrawing financial forecasts for 2025 due to weakening demand and growing economic uncertainty. Southwest, the leading U.S. carrier by passenger volume in 2024, is particularly affected as its core base of budget-conscious, middle-class travelers is pulling back on bookings amid inflation and recession fears. The airline reported a net loss in the first quarter of 2025 and has joined industry peers in cost-cutting measures, including fewer flights and new charges for checked baggage. The shift from Southwest’s longstanding 'two bags fly free' policy, effective for tickets purchased on or after May 28, 2025, marks a significant change in its customer experience. The reduction in flight capacity is expected to result in more crowded flights and higher fares, especially during peak travel seasons, making it more challenging for travelers to secure affordable tickets. While international travel remains strong, domestic leisure travel has notably slowed, signaling a broader industry trend and increased competition for available seats.