Last week, Southwest Airlines announced that it will change its decades-long free checked bags policy and start charging them, with some exceptions, this summer. There have been several major policy changes in recent times, particularly after Elliot Investment Management took a $1.9 billion stake in Southwest. Increasing pressure from the stakeholders calls for drastic changes, as the company focuses on increasing its profitability. While US airlines take over $5 billion a year in baggage fees, Southwest decides to take a small share in it.
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