Southwest Airlines has lost $10 million to $15 million so far this month due the partial government shutdown, the low-cost airline estimated on Thursday.
The estimate comes a week after rival Delta Air Lines said it likely lost about $25 million in January with fewer government employees and contractors working as the shutdown enters its second month.
The amounts are small compared with carriers’ overall revenue. Southwest posted $5.7 billion in revenue in the last three months of the year, slightly above analysts’ expectations.
But the airline industry has been feeling the impact from the shutdown since they need government approvals to start flying new jets and new routes. Southwest has had to delay its plans to start service from California to Hawaii since federal safety approvals are on hold.
“Our remaining work is currently suspended until the government reopens and the FAA is allowed to resume normal certification activities,” Southwest said in its earnings release on Thursday. “We are anxious for the government to resolve this shutdown so we can bring low fares and a boost to Hawaii’s travel and tourism industry.”
Southwest said travel demand remains strong, however. Shares of the airline were up close to 4 percent in premarket trading after it beat analyst’s earnings expectations.
