Southwest Airlines faces activist challenge from Elliott

An activist hedge fund called Elliott Management has invested $1.9 billion in Southwest Airlines and is pushing for leadership changes at the company. They want to replace the current CEO and chair with outside candidates, as they believe Southwest has gone from being a top airline to one of the worst performers. Elliott has spoken with former employees and surveyed flyers to understand why people choose Southwest over other airlines. Southwest has faced challenges with delays in receiving new planes from Boeing, changing travel patterns post-pandemic, and a recent holiday meltdown that cost the company over $1 billion. Elliott’s campaigns at other companies have focused on changing leadership as well. Southwest’s shares have dropped significantly in the past few years, while competitors like Delta and United have seen more stability in their stock prices. Elliott has also made significant investments in other companies recently. Stay tuned for updates on this developing story.


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