Southwest Airlines has decided to start charging some travelers for checked bags after pressure from Elliott Investment Management. This decision comes after the airline ended open seating on flights and cut 15% of its corporate roles.
Key Points
Pressure from Elliott Investment Management led to the decision to charge for checked bags
Southwest Airlines will still offer exceptions for elite frequent flyers and credit card holders
The decision aligns Southwest with rival airlines that generate significant revenue from bag fees
Pros
Potential revenue increase for Southwest Airlines
Cons
Customers who valued free checked bags may be unhappy with the change