An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

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Activist shareholder Elliott Investment Management has taken a $1.9 billion stake in Southwest Airlines and wants to get rid of the CEO.

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.

“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. “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.

Savanthi Syth, an airline analyst for Raymond James Financial, said Elliott was likely attracted by Southwest's well-known brand, leading position at many airports and strong balance sheet, among other attributes. She suggested that necessary changes shouldn't be that hard to achieve.

 

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Investment firm takes $1.9 billion stake in Southwest Airlines and wants to oust the CEOActivist 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.
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