In many ways, Southwest Airlines is unlike any other. The Dallas-based carrier has been doing things its own way ever since it launched in 1971 to connect Texas’s three largest cities.

But this week, one of its largest shareholders, hedge fund Elliott Management, announced it no longer believes Southwest to be a “best-in-class airline,” calling for an overhaul and the replacement of both the company’s CEO and chair.

“A lot of times when activists come in, they want to see very quick changes. They want to see policy changes, strategy changes, and things like that. And that’s what we’re trying to figure out. How quickly can Southwest move and will they move to make some of these changes that Elliott is suggesting?” said CNBC airline reporter Leslie Josephs.

Josephs said in recent months, CEO Bob Jordan had signaled possible changes like adding premium classes to planes and assigning seats.

Elliott called to take things further. Among the requests was eliminating the airline’s rare two-free checked bag policy. It’s something travelers at Love Field said was part of the draw when asked Thursday.

“We just love the fact that, even coming in from Grand Prairie to Dallas, we get the luggage for free and the prices are best,” said Linda Kindt.

After Jordan responded to Elliott’s requests at an industry event Wednesday, Southwest released a statement.

“Southwest is focused on building on its strong heritage of innovation and change, and we welcome feedback from all Shareholders. The Board is comprised of directors with complementary skills and expertise and includes seven new directors appointed during the past three years. The Board is confident in the ability of our CEO and Leadership Team to evolve the business and drive long-term value for all stakeholders.”

After the airline struggled with weaker margins than some of its competitors and suffered a delayed rebound from the 2022 holiday meltdown, Josephs said some change is inevitable.

“Things have changed with the airline and the way Bob Jordan cast it earlier this week, he said, Southwest had the first generation flying these short hops. They started out in Texas, then they expanded. Now they’re in this kind of third generation of Southwest. That’s how he’s put it. And now they’re looking for new ways to maybe change the business, but they don’t want to change it so much that they’re going to alienate the customers that are very loyal to the carrier,” she said.

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