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

Elliott Investment Management revealed a sizable investment in Southwest Airlines and called for new leadership at the airline, citing its poor execution and reluctance to adapt to a changing industry. Southwest’s stock price has dropped more than 50% since early 2021 and is now below its pre-pandemic level. The airline has faced challenges with delayed Boeing 737 deliveries and operational issues, resulting in significant flight cancellations and financial losses. Elliott’s letter highlighted the need for increased customer choice, improved cost execution, and updated IT systems. Southwest has not yet commented on the statement.