CNBC reports that Southwest Airlines shares are up about 24% in 2025, even though profit fell 42% in the first nine months of the year compared to 2024.
The shares are the highest rise out of any U.S. airline. Delta Air Lines and United Airlines have both risen 17% this year.
Southwest will transform its model next year to look more like its rivals, with open seating ending on Jan. 27 and being replaced with assigned seats.
According to Southwest, assigned seating could increase pretax earnings by $1 billion in 2026 and $1.5 billion in 2027.
