Elliott Management calls for overhaul at Southwest Airlines

Elliott Management, the second-largest shareholder of Southwest Airlines, called for an extraordinary shareholders' meeting on Monday. The aim is to vote on the election of eight new directors who would form the majority on the board of the struggling airline. The hedge fund, led by billionaire Paul Singer, has been criticizing Southwest for months and pushing for changes in the company's leadership style and a comprehensive realignment of its strategy. Although Southwest has made some adjustments, this is not enough for the fund. Elliott, which recently acquired an 11% stake in Southwest, plans for the meeting to be held on December 10. A change in the board from 15 to 12 members was already decided in September and will take effect immediately after the 2025 annual general meeting. Since the beginning of the year, Southwest has improved its operations and has a cancellation rate slightly below the industry average. However, a series of incidents raises safety concerns, including a near-crash over the Pacific Ocean. Since then, the FAA has increased oversight of Southwest. At the end of last month, Southwest presented its vision for "Southwest 2.0," including personalized seat assignments and new fee options. Furthermore, the airline plans partnerships, starting with Icelandair, to strengthen its loyalty program. With these changes, Southwest Airlines aims for the most significant innovations in its history. Originally founded as a low-cost airline, Southwest has faced economic challenges in recent years, particularly after the pandemic.