Southwest Airlines Co. $LUV is confronting persistent demand softness in the passenger airline sector, extending a downtrend first noted earlier in 2025. This environment has prompted leading U.S. air carriers to re-evaluate their financial projections for the remainder of the year. During a recent Wolfe Research conference, Southwest’s CFO Tom Doxey reported no visible signs of a sectoral rebound, emphasizing a consistent decline in industry-wide travel demand.