The moves away from Southwest’s simple business model and quirky traditions come as airline management faces pressure from activist investor Elliott Investment Management. The hedge fund blames management for Southwest’s recent underperformance compared with its closest rivals, and wants to replace Jordan and most of the Southwest board.

Elliott Investment Management told shareholders Tuesday it is ready to go to a proxy fight with Southwest Airlines.

Elliott Investment Management, a hedge fund urging Southwest Airlines to dump its CEO and chairman, said Tuesday it has acquired enough of the company’s stock to call a special meeting of shareholders.

Under assault from activist hedge fund Elliott Capital Management, the carrier's executives told a shareholder meeting that bags will still fly free, but much else will change for passengers of the budget airline.

Assigned seats could be coming to Southwest Airlines as soon as next year. The carrier said it expects to start selling tickets with seat assignments in the second half of 2025, with the first of those flights operating in the first half of 2026,