Elliott Investment Management blames 'poor execution and leadership’s stubborn unwillingness to evolve' for carrier's troubles.
DALLAS — Activist shareholder Elliott Investment Management has bought a $1.9 billion stake in Southwest Airlines and is seeking to force out the CEO of the airline, which has struggled with operational and financial problems. Shares in the airline rose 7% Monday, their second-best day since 2020. In a letter to Southwest ’s board, the investment firm complained that Southwest ’s stock price has dropped more than 50% in the past three years.
Southwest starts offering $75 vouchers for flight disruptions. It stems from 2022 system meltdown. “Poor execution and leadership’s stubborn unwillingness to evolve the Company’s strategy have led to deeply disappointing results for shareholders, employees and customers alike,” the investment firm said in the letter, dated Monday. It was first reported by the Wall Street Journal.
Southwest Airlines reaches $140 million settlement over holiday flight-canceling meltdown last year “The Southwest Board of Directors is confident in our CEO and management’s ability to execute against the company’s strategic plan to drive long-term value for all shareholders, safely and reliably serve our customers and deliver on our commitments to all of our stakeholders,” a spokesperson said in a statement.
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