Activist investor takes $1.9 billion stake in Southwest Airlines, calls for leadership changes

Chris Isidore
By Chris Isidore, CNN
3 minute read • Updated 2:29 PM EDT, Mon June 10, 2024

Elliott Investment Management announced Monday it has taken a $1.9 billion stake in Southwest Airlines and said there needs to be new leadership at the Dallas-based carrier.

“Southwest’s 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,” said the statement from the firm. “Southwest’s rigid commitment to a decades-old approach has inhibited its ability to compete in the modern airline industry.”

The letter pointed out that Southwest’s share price is down more than 50% from early 2021 and now trades at a price lower than its pre-pandemic price in 2020. Southwest (LUV) stock gained more than 6% in trading Monday on the news of Elliott’s letter to the Southwest Board.

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