Elliott Investment Management acquired a $1.9 billion stake in Southwest Airlines and is pushing to replace the company’s CEO as the airline battles operational and financial challenges.
Southwest has been struggling with lower earnings and profits compared to its rivals due to increased expenses from recent labor agreements.
Additionally, delays in receiving new planes from Boeing and their certifications following the Alaska Airlines flight accident in January have hindered Southwest’s expansion efforts. Out of the previously expected 79 new aircraft, the airline now foresees only 20 new Boeing deliveries this year.
In a letter to Southwest’s board, the investment firm complained the airline’s stock value has declined by more than 50% in the past three years. The investment firm criticized its failure to innovate, which has hindered its competitiveness in the
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