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.

Southwest Airlines executives on Thursday outlined for Wall Street their vision to boost profits: extra legroom seats starting in 2026, assigned seating, international partnerships and overnight flights.

Southwest Airlines plans to start using assigned seating on planes in the first half of 2026 — one of many upcoming changes the company will roll out in attempt to improve the customer experience and profits,