Southwest Airlines will charge to check bags for first time — breaking longstanding tradition

Southwest is sunsetting another beloved perk.

The airline on Tuesday said it will end its decades-old free bag check policy – another break from tradition as the company tries to ward off advances from activist investors.

Southwest’s latest major change follows a monthslong campaign from Elliott Investment Management, which took a stake in the airline last year, won five board seats and unsuccessfully fought to oust CEO Bob Jordan.

Last summer, the Dallas, Texas-based airline made a major capitulation when it ended its iconic pick-any-seat policy and implemented a standard assigned seating process.

Now, Southwest is hoping the bag fare will boost its revenues.

The news sent shares in the company soaring 11.9% premarket on Tuesday.

Customers in all but the top-tier class will have to pay to check their bags for tickets purchased starting May 28, according to a press release.

Read Full Article Here