See https://en.wikipedia.org/wiki/Baudot_code#ITA_2_and_US-TTY
There was a time before ASCII, you know...
* News wires are large old distributed networks. There may still be old equipment attached to it that natively uses this encoding; or modern software may still be using the compatible encoding because it was never practical or cost-effective to have a "flag day" to switch over.
* Even if the technical limitation has been lifted, the convention may live on as part of the folklore of the field.
https://iptc.org/standards/iptc-7901/
Perhaps the convention of a limited character set dates back to the telegraph era
I'm not convinced they would be compressing it. When you have the bandwidth for a full article, size is probably not going to be the problem, and when you don't have the bandwidth, compression is probably counterproductive.
Even a static huffman tree would help, and has no overhead. An entropy encoder would do very well and only cost a few bits to flush.
And I bet you can get more reliability out of compressing and then adding error correction bits.