FILE: A Homeland Security Real ID message at Miami International Airport.

In this week’s air travel news, Southwest Airlines announced plans for some big changes in its top management, but it looks like they might not be enough to satisfy the activist hedge fund that is buying up its stock and demanding major revisions in the carrier’s business model; a new consumer survey finds broad support among air travelers for the Transportation Security Administration’s ongoing deployment of facial recognition technology to verify passengers’ identities; TSA has set a final deadline of May 7 for enforcement of the federal government’s Real ID mandate but with some flexibility for noncompliant travelers; an industry group warns of a growing threat from the lithium-ion batteries carried onboard aircraft by most travelers; JetBlue’s new carry-on bag policy for purchasers of its basic economy fares takes effect; Cathay Pacific is set to increase service to the West Coast; international route news comes from Starlux, Delta/SAS and United; Avelo Airlines expands its “Wine Travels Free” program in the western U.S.; and United Airlines announced that it will overhaul its in-flight Wi-Fi service by switching to the Starlink satellite network.

Southwest Airlines Executive Chairman Gary Kelly walked into a meeting this week with representatives of Elliott Investment Management — the activist hedge fund that is demanding big changes at the airline — and he walked out without a job. The tense meeting was the latest chapter in an ongoing boardroom drama that remains largely unresolved, despite Southwest management’s efforts this week to satisfy more of Elliott’s concerns. Those efforts included not only Kelly’s agreement to retire from the airline next year but also the decision by six additional members of Southwest’s board to step down in November. The airline also said that its board will be reduced from the current 15 members to 13 in November and to 12 in 2025 and that it expects to name four new independent directors “in the near future.”

FILE: Southwest Airlines Chairman of the Board Gary Kelly speaks during an aviation conference on April 3, 2014, in Washington, D.C.

Elliott has accumulated more than 10% of Southwest’s voting stock, which gives it the authority to call a special meeting of all shareholders where it can seek approval of the changes it wants to see at the airline to boost its profitability (and its share price). The hedge fund recently put out a list of 10 individuals it wants to join the Southwest board, which would give it a clear majority of votes. Southwest said as it seeks out those four new directors it mentioned, it will consider Elliott’s preferred candidates but will also use an executive search firm to recommend others. Elliott is getting its wish that Kelly be removed from Southwest’s top management, but it also wants another C-suite head to roll — that of CEO Bob Jordan. And that’s where the company drew the line this week: “Southwest Airlines’ board is confident that there is no better leader than Bob Jordan to successfully execute Southwest Airlines’ robust strategy to evolve the airline and enhance sustainable shareholder value,” the company said.

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Jordan and Southwest management had already announced some major changes coming to the airline’s business model in the months ahead, including the introduction of a premium seating category and assigned seating for all passengers. It did not mention another big change that Elliott has pushed for: the end of Southwest’s longstanding policy of allowing two free checked bags for everyone. The company’s management is expected to announce more details of its planned operational changes at an Investor Day scheduled for Sept. 26.

A Southwest Airlines plane takes off from Hollywood Burbank Airport above other Southwest planes on July 25, 2024.

But it looks like Elliott may not be satisfied with these latest concessions from Southwest’s management and board. Responding to the airline’s announcement, the hedge fund said it is “pleased that........

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