From CNBC: 2024-06-10 11:15:45

Activist hedge fund Elliott Management has invested $1.9 billion in Southwest Airlines, seeking leadership changes due to the airline falling behind competitors. Elliott plans to replace CEO Bob Jordan and Chairman Gary Kelly with outside candidates, criticizing Southwest’s underperformance. Southwest is in talks with shareholders about enhancing shareholder value, as Elliott pushes for immediate leadership transitions.

Southwest shares have dropped over 50% in the past three years, contrasting with Delta Air Lines and United Airlines. Elliott’s significant stake in Southwest positions them as one of the largest shareholders. Southwest faces challenges with revenue generation amid evolving consumer preferences and post-pandemic shifts in travel demand.

Elliott’s aggressive strategies at other companies include pushing for leadership changes at Crown Castle and Sensata. The activist’s recent investments in Texas Instruments, SoftBank, and Anglo American highlight their focus on driving change in diverse industries. Southwest’s response to Elliott’s demands could shape the airline’s future strategic direction in a competitive market.



Read more at CNBC: Southwest Airlines faces activist challenge from Elliott