Wall Street investors punished Southwest for chopping its 2025 profit outlook by up to 65%, as the carrier’s executives implement changes driven by its activist investor.

Southwest Airlines Co. plunged after the carrier said it expects economic turmoil to wipe out as much as $1 billion of its annual pre-tax profit this year and offered shareholders a much-reduced outlook for the balance of 2025.

Turning to guidance, Southwest says it will earn at least $600 million this year, not counting interest on its debt and taxes. With this prospect in mind, management thinks its stock a bargain, and announced a $2 billion stock buyback (which will see even more shares retired after today's sell-off).