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,

Southwest Airlines presented a thorough transformation plan, but failed to impress main shareholder and most vocal critic of current management

Representatives with Elliott Investment Management, the Florida-based hedge fund that has accumulated a 11% stake in Southwest Airlines and pushed for leadership changes, said the plan shared with shareholders represented "another promise of a better tomorrow from the same people who have created the problems we face today.