Southwest Airlines is more negative about its revenue in the current quarter. A big culprit is the so-called shutdown, which lasted until the end of January. Some of the government institutions in the United States remained closed due to a budget conflict in Congress, so fewer Americans booked a flight.
Southwest thinks that the shutdown takes a bite of approximately 60 million dollars from the quarterly turnover. This means that the airline does not achieve its previously issued forecast for revenue growth. In January, the company already announced that the shutdown that month cost $ 10 million to $ 15 million in lost revenue.
Many public services remained closed for 35 days because Trump refused to sign a new financing law that did not include a $ 5.7 billion post for the construction of a wall on the border with Mexico. The Democrats were against it. It was the longest shutdown ever in the US.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email maurice.eisma@economicinform.com
