Southwest Airlines CEO Bob Jordan said Thursday that a recession has effectively begun within the U.S. airline sector, according to Bloomberg. He pointed to a sharp decline in domestic leisure travel demand as evidence. Jordan noted the downturn is worse than anything outside the pandemic, prompting the company to project a six-point drop in second-quarter revenue after a three-point decline in the first quarter. Southwest has pulled its full-year financial guidance, citing economic uncertainty and weakening consumer sentiment. The Dallas-based carrier relies more heavily on domestic leisure travel than its competitors, making it especially vulnerable to shifts in consumer behavior.
