Implementing baggage fees to increase revenue and improve profitability.
Southwest Airlines
Basic Economy Fares
Positive
Introducing a basic economy ticket class to offer a lower-priced option and increase revenue.
Switching to assigned seating to increase revenue and potentially improve operational efficiency.
Southwest Airlines
Customer Relations
Negative
Facing criticism from customers for eliminating long-standing perks like free checked bags.
Southwest Airlines
Operational Efficiency
Negative
Expecting longer airport lines and potential customer frustration due to new baggage policies.
Elliott Investment Management
Business Model Changes
Positive
Pressuring Southwest Airlines to implement changes to improve its business model and profitability.
Southwest Customers
Baggage Fees and Other Changes
Negative
Likely to be unhappy about the introduction of baggage fees and other changes that reduce perks.
Southwest Customers
Airport Wait Times
Negative
May experience longer wait times at airports due to new baggage policies.
Bob Jordan (Southwest Airlines CEO)
Revenue Generation
Positive
Believes the policy changes will drive sign-ups for the co-branded credit card and that new ticket sales channels will help the carrier.