The policy change is likely to disappoint travelers but it's had the opposite effect on investors as the shares surged Tuesday.

Southwest Airlines just dropped a bombshell, signaling a major shift in its strategy. The airline is scrapping its long-standing fuel hedging programonce a billion-dollar safety n

"Bags fly free" was a staple slogan for the Dallas-based airline, which trademarked the phrase in 2012. Members of Southwest's top-tier A-List Preferred rewards status and Business Select fliers will still be able to check two bags for free, and A-List members can check one.