America's No 1 airline cuts flights, throws vacations plans into chaos (2025)

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Another airline is dialing back its US flight schedule.

Southwest Airlines, the nation’s most popular carrier in 2024, said it’s reducing domestic flight capacity for the second half of the year, citing weak demand.

The airline didn't initially say how many seats are going away, but the move mirrors similar pullbacks from other major players. Its also the latest sweeping change for the giant company.

For consumers, the industry-wide cuts could throw holiday vacation plans into turbulence:fewer domestic flights and capacity could lead to higher prices as tickets become more competitive.

The cuts arrive as airlines report a slowdown in domestic bookings, even as international travel soars.

High-spending travelers are still flocking to overseas destinations, while budget-conscious fliers are pulling back stateside.

Southwest is feeling the strain.

The airline reported a $149 million loss in the first quarter of 2025 and yanked its financial forecast for the rest of the year, pointing to uncertain economic conditions and the threat of a recession.

Speaking to Bloomberg, Southwest's CEO, Bob Jordan, said the entire airline industry is going through a profit chasm as customers cut back.

'I don’t care if you call it a recession or not, in this industry that’s a recession,' Bob Jordan said.

Southwestis particularly vulnerable to a domestic flights slump.

Its low fares and vacation-heavy routes are designed for middle-class passengers, a group now facing tighter financial limits amid inflation and tariff-related constraints.

The cuts are part of a broader shift for the airline, which has already started phasing out a few fan-favorite perks that once set it apart.

Earlier this year, the company announced it would start charging for checked baggage.

Southwest, which hasn't charged for bags in its 50-year history, drew in millions of customers with its popular'two bags fly free' policy.

But under pressure from activist investors, the company shifted its iconic bag policy, effective for tickets purchased on or after May 28.

The announcement made the stock pop, with Jordan net worth rising on aspectacular eanings day.

Southwest also ended its open-seating programlast year.

Unlike other carriers, Southwest didn't assign seats to passengers. But pressure from activist investors forced the company to make the shifts that raked in billions of dollars for its competitors.

Customers haven't loved the moves.

The baggage and seating policies have set Southwest apart from other American airliners and remained popular with its consumer base.

'Well, I guess it will be more competitive now all airlines are on the same nickel-and-dime to death level,' one customer said on Reddit.

The company declined to comment on this story.

Airline flutters

Multiple airlines have now reported increasing concerns for the domestic industry in 2025.

United Airlines also cut domestic flights from its portfolio after seeing a ticket sales skid.

But the company said it saw international ticket sales spike five percent.

United also made an unusual move while reporting its sales numbers: it gave two separate forecasts.

The company gave a financial projection for if American finances remain on their current pace, and a separate if the economy falls into recession.

Delta Air Lines and Frontier nixed their 2025 forecasts amid broader instability.

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