well said.
WN's root issue is that they are flying too many seats and not doing as good of a job in filling them as other airlines - in part because they have been unable to fly the MAX 7 that they ordered a decade ago.
WN mgmt - forced by Elliott - is now realizing that the MAX 7 is not coming and WN will have to just retire their -700s when they run out of time and run a larger gauge airline.
The answer to filling more seats is not to keep giving away revenue that doesn't generate a profit. and that includes the companion pass.
DL made a pivot almost 2 decades ago; UA has done it within the last decade. Large airlines can successfully walk away from major parts of their former identity.
WN was once the most consistently profitable airlines in the world; they want at least to have industry-comparable levels of profitability and have set goals to be far more profitable than what AA and most of the LCC and ULCC game thinks they can accomplish.
WN has deep pockets (a very strong balance sheet) and will successfully pivot. If companion passes and free baggage make sense, they will be given to the people that can turn them into revenue and profits.