Elliott Investment Management , Takes $1.9 Billion Stake in Southwest Airlines.
The firm made the announcement on June 10, CNN reports.
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It also said Southwest needs new leadership.
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, Elliott Investment Management, via statement.
Southwest’s rigid commitment to a decades-old approach has inhibited its ability to compete in the modern airline industry, Elliott Investment Management, via statement.
The airline's stock increased over 6% following the news on June 10.
While Elliott didn't give specific details about the changes it would like to implement, .
It did say that it wants to provide "increased customer choice, improved cost execution and updating outdated IT systems, among other opportunities.".
Southwest, which was only contacted by the firm on June 9, said it is looking "forward to better understanding their views on our company.".
The Southwest board of directors is confident in our CEO and management’s ability to execute against the company’s strategic plan.., Southwest Airlines, via statement.
... to drive long-term value for all shareholders, safely and reliably serve our customers and deliver on our commitments to all of our stakeholders, Southwest Airlines, via statement.
Elliot Investment Management was founded in 1977 and is based in Florida.
According to its website, the firm was managing approximately $65.5 billion in assets by the end of 2023
