Southwest Airlines pitched a new vision at the company’s investor day on Thursday morning as part of a bid to placate the activist hedge fund Elliott Management, which has been demanding change at the troubled airline. The new pitch, which presented plans for a three-year overhaul, appeared to pay off. Shareholders liked what they heard and sent the stock soaring 10%.
The airline has already announced it will replace its famous open-seating policy and charge for premium seating, which has become a major source of revenue for its rivals, while also reiterating that it aims to offer red-eye flights starting in February. Southwest will remain the only U.S. carrier, however, not to charge for two checked bags.
