Skift Take
As Elliott continues to press its case for new leadership at Southwest, the carrier unveiled a slate of changes ranging from assigned seats to airline partnerships at its investor day on Thursday.
It hasn’t been an easy year for Southwest Airlines.
Boeing delivery delays, along with sustained demand for premium and international travel, and expensive labor contracts have eaten into its profits. And now, it has an activist investor that has been demanding for a leadership change.
But Southwest hopes it can restore its profitability and fend off Elliott Investment Management. At its investor day in Dallas on Thursday, Southwest executives rolled out a set of changes to the carrier’s business model and made a case for the current leadership team to shareholders.
Changes include assigned and premium seating, airline partnerships, red-eye flights and cutting capacity in unprofitable areas. Southwest also appointed a new member to its board, Robert Fornaro, a former CEO of Spirit Airlines and AirTran.
It announced a $2.5 billion share buyback program Thursday morning, hoping to appease shareholders.
The changes haven’t persuaded Elliott. The hedge fund said competitors have been able to implement similar changes in a quicker ti