Southwest Airlines operates a low-cost, point-to-point airline network across the United States, historically differentiated by not charging for checked bags and by flying a single aircraft type, both features that simplified its operations and reduced costs relative to competitors. The company's business model built its reputation on lower fares and a more straightforward, no-frills flying experience compared to traditional legacy carriers with multiple aircraft types and complex fare structures. Southwest has faced increasing competitive pressure from other low-cost carriers and has made changes to some of its historically differentiated policies in recent years as it adapts its strategy to a changing competitive and cost environment. Airlines are a capital-intensive, cyclical business where profitability depends on managing fuel costs, labor expenses and capacity relative to passenger demand, making Southwest's results sensitive to fuel price swings and broader economic conditions affecting travel demand.