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Hedge fund Elliott Investment Management steps up pressure on Southwest Airlines' management

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A hedge fund that's been urging Southwest Airlines to dump its CEO and chairman says it has acquired enough of the company's stock to call a special meeting of shareholders.

FILE - A Southwest Airlines plane prepares to land at Midway International Airport while another taxis on the ground, Feb. 12, 2023, in Chicago. The move gives Elliott, the Paul Singer-led investment fund, more leverage in its proxy fight heading into a meeting with Southwest officials next Monday.Elliott said in a regulatory filing that it owns more than 61 million shares, at least 10% of Southwest, the nation’s fourth-largest airline.

“We remain prepared to meet with Elliott next week and look forward to sharing details on our continued transformation at our Investor Day on Sept. 26,” a Southwest spokesperson said in a statement. Elliott announced in June its plan to shake up Southwest, which has seen its shares lose more than half their value in the past three years. The hedge fund says Southwest’s leadership has failed to evolve with the airline business, and it wants to replace CEO Robert Jordan and Chairman Gary Kelly, the previous CEO.and begin assigning passengers to seats. Southwest also plans to charge extra for premium seats with more legroom. Both moves will make Southwest more like its closest rivals.

 

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Hedge fund Elliott Investment Management steps up pressure on Southwest Airlines' managementA hedge fund that's been urging Southwest Airlines to dump its CEO and chairman says it has acquired enough of the company's stock to call a special meeting of shareholders. The move gives Elliott Investment Management more leverage in its proxy fight heading into a meeting with Southwest officials next week.
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