And just like that, Elliot Management, the investor group that forced all the changes, has begun to sell their shares and exit from Southwest:
An Activist Investor Forced Southwest to Add Bag and Seat Fees—Now They're Cashing Out And Giving Up Control - View from the Wing
Southwest Airlines didn’t stumble into bag fees, basic economy, and paid seat assignments by accident—those changes were pushed by an activist investor demanding short‑term financial moves. Now that the damage is done and the stock has popped, that same investor is cashing out and giving up...viewfromthewing.com
Not sure if that was the plan all along or if they decided to bail out while the getting was good.
That is a question with an obvious answer. Their primary goal is to maximize returns. SW stocks may have gone up for now but their changes and prices seem to place them at the same level or worse compared to legacy carriers. Will they changes lead to decreased profit and decline of the company?
