On Monday, Elliott Investment Management bought an 11% stake in the company for $1.9 billion. In a letter to the company board, Elliott called on the airline to make leadership changes and replace CEO Bob Jordan and executive chairman Gary Kelly.
An activist investor group bought a nearly $2 billion stake in Dallas -based Southwest Airlines . The investors are demanding changes at the top, including the ouster of the airline's CEO.Since the pandemic, Southwest has struggled to regain profits compared to other airlines. An activist investor group believes that’s due to poor management, and they want to make changes. Southwest says it's confident in its CEO and leadership but is open to discussions on their perspectives.
"I don’t think they have a big enough stake to force out the directors, but it’s a very serious moment for Southwest," he said.The news of the activist shareholder investment comes after Southwest reported a $231 million loss in the first three months of the year. Davis notes that some things are out of the company’s control. "Southwest has also been the victim of bad luck. They’re entirely dependent on Boeing to supply new airplanes," he said.
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