Southwest Airlines' Free Bag Policy Under Pressure After Elliott's $1.9B Stake
Southwest Airlines' Free Bag Policy Under Pressure After Elliott's $1.9B Stake
Southwest Airlines Co. (NYSE:LUV) faces pivotal decisions regarding its distinctive "bags fly free" policy as Elliott Investment Management, having recently acquired a $1.9 billion stake, advocates for strategic changes.
西南航空公司（NYSE:LUV）面臨關鍵決策，艾略特投資管理公司最近收購了19億美元的股份，並主張進行戰略性變革。
The said policy allows passengers to check two bags free of charge, a unique offer among U.S. airlines.
該政策允許乘客免費託運兩件行李，這是美國航空公司中獨特的優惠。
The debate on whether to introduce fees for checked bags is intensifying, especially as the airline contemplates other modifications to its business model, such as assigned seating or premium services, reported Bloomberg.
據彭博社報道，關於是否引入托運行李費的辯論越來越激烈，尤其是當這家航空公司正在考慮對其業務模式進行其他修改，比如指定座位或提供高端服務。
On Monday, Elliott sent a letter to Southwest's Board of Directors criticizing the company's outdated strategies.
週一，艾略特投資公司致信西南航空公司董事會，批評該公司過時的戰略。
While other carriers have embraced additional revenue streams like baggage fees, Southwest has remained an outlier, sacrificing potential earnings for customer loyalty.
雖然其他航空公司已經接受了行李費等額外收入的來源，但西南航空公司一直保持着與衆不同的特點，爲了顧客忠誠度而犧牲了潛在的盈利。
The report cited industry experts that carriers collected $33.3 billion globally from baggage fees last year, a significant increase from the previous year, highlighting the financial impact of such charges.
該報道引用行業專家的數據稱，去年全球航空公司從行李費中收取了333億美元，從前一年到現在有了大幅度的增長，突顯了這些費用的財務影響。
However, altering this policy could risk alienating Southwest's loyal customer base, which values the airline's baggage policy.
然而，修改這一政策可能會冒險疏遠西南航空公司的忠實顧客基礎，他們看重航空公司的行李政策。
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Despite not charging for the first two bags, Southwest levies fees for additional, oversized, or overweight baggage, generating $73 million last year.
儘管西南航空公司不收取前兩件行李的費用，但對額外、超大或超重的行李收取費用，去年創造了7300萬美元的收入。
In contrast, competitors like American Airlines Group Inc. (NASDAQ:AAL) and United Airlines Holdings Inc. (NASDAQ:UAL) earned substantially more from baggage fees.
相比之下，競爭對手美國航空集團公司（NASDAQ:AAL）和聯合大陸航空控股（NASDAQ:UAL）從行李費中獲得的收入要多得多。
Southwest's CEO, Bob Jordan, reinforced the company's commitment to no bag fees in a recent earnings call, citing a survey that found a significant portion of customers choose Southwest for this reason.
西南航空公司的CEO Bob Jordan在最近的業績會上強調了該公司取消行李費的承諾，並引用了一項調查結果，稱有很大一部分顧客選擇西南航空公司就是因爲這個原因。
This sentiment was echoed in the company's statement, which referred to the free bag policy as a core aspect of its value proposition.
這種情緒在該公司的聲明中得到了回應，該聲明將免費行李政策稱爲其價值主張的核心方面。
The pressure from Elliott might lead to compromises, such as reducing the number of free bags or tying them to other purchases like premium seats.
艾略特的壓力可能會導致妥協，例如減少免費行李的數量或將其與其他購買（比如高級座位）掛鉤。
Related: Southwest Airlines May Ditch 'Open Seating' To Make More Money From 'Premium Seating' Options
相關西南航空公司可能會放棄“開放式座位”以從“高級座位”選項中獲得更多收益
Price Action: LUV shares are trading higher by 0.53% at $28.20 premarket at the last check Wednesday.
股票價格：截至上週三的盤前交易，LUV股價以0.53％的漲幅在28.20美元。
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
免責聲明: 此內容部分使用人工智能工具生成，並由Benzinga編輯審查和發佈。
Image by Around the World Photos via Shutterstock
由Shutterstock提供的Around the World Photos影像。
譯文內容由第三人軟體翻譯。