Dallas-based Southwest Airlines announced plans to abandon its free checked bag policy Tuesday. After axing open seating and other perks in 2024, Southwest looks quite different from how it did a year ago.
Many have taken to social media and elsewhere to ask why this is happening, and looking back at a turbulent year of Southwest news can help answer that.
Below is a timeline of The Dallas Morning News' coverage of the airline from early 2024 until now, as Southwest faced financial troubles, fought off an activist investor and remade itself into a new air carrier:
January 2024
The effects of Southwest’s holiday meltdown in 2022 lingered, and the air carrier rung in 2024 by reporting a 2023 fourth-quarter loss of $219 million in January. Then-chief financial officer Tammy Romo said Southwest was “not satisfied” with its current financial performance.
- Jan. 25, 2024: A year after meltdown, Southwest Airlines says it’s not delivering on financial goals
March 2024
However, Southwest continued to face challenges, this time due to issues with its aircraft supplier Boeing. One signature strategy of Southwest is its exclusive use of the Boeing 737, but the plane model has had its own issues, including the January 2024 incident in which the an Alaska Airlines 737 Max 9 blew out a window and a portion of its fuselage.
As Boeing faced regulatory battles amid safety concerns, delays in aircraft delivery rippled through Southwest, causing a host of problems, and Southwest had to decrease flight capacity.
- March 12, 2024: Plane manufacturer Boeing under pressure to get it together from major airlines
- March 12, 2024: ‘Boeing needs to become a better company,’ says Southwest Airlines CEO
- March 12, 2024: Southwest Airlines to cut flight capacity this year as Boeing woes grow
In the meantime, Southwest reached agreements with labor unions, which CEO Bob Jordan cited in his March 12, 2025 presentation as a cost pressure. It also began looking at offering redeye flights.
- March 20, 2024: Southwest Airlines flight attendants reach new deal after rejecting contract in December
- March 21, 2024: Southwest Airlines ground workers vote in new contract with 18% average pay bump
- March 25, 2024: Southwest Airlines flyers could see overnight flights in the next few years
April 2024
Southwest ratified more labor contracts and Boeing woes persisted. This time, citing Boeing-related issues, Southwest left four airport and cut back hiring.
- April 1, 2024: Big new contracts push pilot pay at American and Southwest to soaring altitudes
- April 24, 2025: Southwest Airlines flight attendants land new contract with immediate 22% raise
- April 25, 2024: Southwest Airlines drops four airports and will cut hiring, citing Boeing delay woes
- April 29, 2024: Southwest Airlines is leaving four airports. Here’s what to know about them
April was also the first time Southwest hinted at what would become of its open seating policy.
May 2024
Southwest announced its foray into third-party online platforms, analytics from which Jordan referenced when describing the rationale for cutting free checked bags.
June 2024
Enter Elliott Investment Management. The activist investor spat that would end up remaking Southwest began with an investment last June.
The investment firm reached an 11% stake in Southwest and immediately put leadership on notice. A letter signed by Elliott leaders criticized the airline for “poor execution” and a leadership with a “stubborn unwillingness” to evolve the airline’s strategy.
Plus, new pretzels.
- June 10, 2024: Southwest Airlines leadership under fire as activist investor takes $1.9 billion stake
- June 12, 2024: Southwest Airlines CEO Bob Jordan says he won’t resign after pressure from Elliott
- June 13, 2024: What’s going on between Southwest Airlines and activist investor Elliott Management?
- June 26, 2024: Southwest Airlines lowers financial expectations as activist investor pressure intensifies
- June 27, 2024: Southwest Airlines brings a twist to travelers: new pretzel snacks on flights
July 2024
Southwest took measures to fight off Elliott amid continued pressure from the investor, including adopting a “poison pill” plan that would disincentive Elliott from increasing its stake in the company.
- July 3, 2024: Southwest Airlines adopts ‘poison pill’ plan after pressure from investor Elliott
- July 8, 2024: Elliott doubles down on Southwest Airlines, says board is ‘out of touch’ with shareholders
- July 8, 2024: Southwest Airlines puts former US Airways CEO on board of directors amid activist pressure
Later that month, the air carrier took its first big swing at the business model it had followed for so long: it would end open seating. Southwest also announced the beginning of red-eye flights.
- July 25, 2024: Southwest Airlines is getting rid of open seating model, launches red-eye flights
- July 25, 2024: ‘I will still fly with Southwest’: Travelers react to airline ending open seating policy
- July 30, 2024: Southwest Airlines is kicking off red-eye flights, but not at Dallas Love Field
August 2024
The battle with Elliott heated up, culminating with Elliott upping its stake in Southwest at the end of the month. Elliott did not yet have enough stake in the company to call a special meeting, but nominated 10 board of its choosing out of Southwest’s 15-person board.
- Aug. 6, 2024: Elliott discloses 7% voting stake in Southwest as it edges closer to forcing meeting
- Aug. 13, 2024: Elliott readies proxy fight with Southwest Airlines, calls for 10 new directors
- Aug. 24, 2024: What’s next for Southwest Airlines and shareholders like Elliott Investment Management?
- Aug. 24, 2024: Has the LUV run out for Dallas-based Southwest Airlines?
- Aug. 26, 2024: Elliott ups its stake in Southwest as it nears threshold to call shareholder meeting
- Aug. 26, 2024: Southwest asked union leaders to sign NDA for a meeting about Elliott. They declined
As that played out, Southwest also added another online platform to its belt. In the wake of axing open seating, it took a look at free checked bags, setting off alarm bells that another change might come.
- Aug. 6, 2024: First Southwest Airlines ed Google Flights. Now it’s on Kayak
- Aug. 22, 2024: Here’s what some Southwest Airlines engers say about the new changes to seating
- Aug. 23, 2024: Southwest Airlines surveys customers on ‘bags fly free’ policy
September 2024
Southwest vs. Elliott hit a critical point as Elliott reached the threshold to call meetings. The airline’s board was the first casualty, but financial cracks began to show, as Southwest cut routes and unveiled a “transformational plan.”
- Sept. 3, 2024: Elliott reaches 10% stake in Southwest Airlines, enough to call shareholder meeting
- Sept. 10, 2024: Southwest Airlines agrees to board overhaul amid activist investor pressure
- Sept. 10, 2024: Who is leaving Southwest Airlines’ board of directors and who can get a spot?
- Sept. 12, 2024: Southwest Airlines is experiencing one of the biggest shakeups in its 53-year history
- Sept. 18, 2024: Elliott still wants Southwest Airlines CEO Bob Jordan out, union says
- Sept. 21, 2024: Southwest Airlines warns of ‘difficult decisions’ to restore profits
- Sept. 24, 2024: Southwest Airlines hits deadline to replace leaders or face proxy fight from Elliott
- Sept. 24, 2024: When Elliott Management calls, CEOs and boards listen. Southwest Airlines’ line is ringing
- Sept. 25, 2024: Southwest Airlines cutting routes, moving workers from key base amid activist battle
- Sept. 26, 2024: Southwest Airlines shrinking legroom to make space for enger seating
- Sept. 26, 2024: Southwest Airlines details plans to fight off activist investor Elliott Management
- Sept. 27, 2024: 5 takeaways from Southwest’s transformational plan like seating, new global partner, more
November 2024
After unveiling the transformational plan, Jordan denied that the changes were due to Elliott. However, as Southwest prioritized cost-savings, it began offering buyouts, a signal of things to come.
- Nov. 11, 2024: Southwest Airlines’ activist investor concerns won’t disappear after the deal with Elliott
- Nov. 11, 2024: Southwest Airlines offering buyouts amid aircraft delivery woes
- Nov. 12, 2024: Southwest Airlines’ major changes were not because of Elliott, CEO says
January 2025
Continuing its cost-savings measures, Southwest halted corporate hiring and shifted pilots out of certain hubs. It also canceled employee rallies, large parties that featured entertainment, games and more. “Every single dollar matters,” Jordan said in a memo then.
- Jan. 14, 2025: Southwest halts corporate hiring, employee rallies in ‘cost discipline’ move
- Jan. 22, 2025: Southwest Airlines to shift pilots out of Denver, Atlanta
February 2025
Elliott completed its shake-up of the Southwest board and received the go-ahead to buy more shares.
Southwest also announced it would lay off 1,750 corporate employees. For over 50 years, the airline prided itself on never laying off or furloughing employees.
- Feb. 7, 2025: Two more Southwest Airlines board step down, completing Elliott makeover
- Feb. 17, 2025: Southwest Airlines laying off 1,750 corporate workers in cost-saving effort
- Feb. 19, 2025: Southwest to let activist investor Elliott buy more shares
March 2025
When Southwest announced its transformational plan in September, it highlighted free checked bags as a perk that would remain. But amid further pressure to improve financials, the company dropped “bags fly free” on March 11.
- March 4, 2025: Southwest Airlines cuts flight attendant bases in Texas, Florida
- March 11, 2025: Southwest Airlines abandons famous free checked bags policy
- March 11, 2025: ‘I wish they didn’t do that’: Southwest flyers unhappy airline dropping free bag policy
- March 11, 2025: Why Southwest reneged on free checked bags, its ‘most important feature’
