Core Insights - Southwest Airlines Co. has adopted assigned seating, ending a 54-year open-seating policy, which is expected to enhance profit margins and improve booking behavior [2][4] Financial Performance - In 2024, Southwest Airlines reported a net income decrease of 5.2% to $441 million from $465 million in 2023, while total operating revenues increased by 2.1% to $28.06 billion from $27.48 billion year-on-year [3] - In Q4 2024, net income rose by 23.7% to $323 million from $261 million, with revenues growing by 7.4% to $7.4 billion from $6.9 billion [3] Strategic Initiatives - The company has implemented significant transformations, including the introduction of bag fees, basic economy fares, assigned seating, and extra legroom seating, along with enhancements to the Rapid Rewards program and online distribution [4] - Southwest Airlines returned $2.9 billion to shareholders through share repurchases and dividends, indicating strong financial health and commitment to shareholder value [4]