Southwest's latest major change follows a monthslong campaign from an activist investor.
Southwest Airlines (LUV) soared this morning after announcing it will charge checked bags for the first time. However, as Jenny Horne notes, the industry has to overcome guidance headwinds.
Southwest Airlines plans to end its decades-old policy of allowing free checked bags. The carrier also will launch a basic economy ticket that doesn't allow for free changes.
Southwest Airlines on Tuesday announced plans to start charging passengers for checking in their baggage in a bid to boost revenue, ending a long-running free baggage policy that served as a core part of the low-cost carrier's identity.
CNBC's Phil LeBeau joins 'Squawk Box' with the latest news.
Southwest Airlines said Tuesday it will charge for checked bags for the first time in its more than half-century of flying. The carrier is under increasing pressure from Elliott Investment Management, which has called for drastic changes to the company's business model.
The airline is closing bases in two major cities. Transcript: Loren Torres: On the heels of its first mass-layoff in company history, Southwest Airlines has announced another cost-cutting measure.
Southwest plans to close crew bases in Fort Lauderdale, Florida, and Austin, Texas. The company has been slashing unprofitable flights, reducing crews in some cities.
Southwest is undergoing an ambitious turnaround plan under the watchful eye of activist investor Elliott Management.
Southwest Airlines has been known for its affordable flights and fun personality since 1971. The airline laid off 15% of its headquarters staff in February, the first mass layoff in company history.
A Southwest Airlines jet was forced to abort a landing at Chicago Midway on Tuesday after a business jet entered the runway without authorization, the Federal Aviation Administration said.
Southwest Airlines' first company-wide layoffs in its nearly 54-year history are aimed at shoring up profits, but they run the risk of undermining a company culture of putting employees first that made it stand out from rivals and cultivated a loyal fan base.