Southwest Airlines shares jumped on Monday after activist investor Elliott Investment Management took a $2 billion stake in the carrier.
Elliott, in a letter sent to Southwest's board on Monday, called on the airline to make leadership changes and take other actions, arguing the carrier needed to improve its financial performance.
In the letter, Elliott executives said Southwest should remake its board with "new, truly independent directors" and hire new leadership from outside the company. It also urged the carrier to form a committee to "evaluate all available opportunities to rapidly restore the Company’s performance to best-in-class standards."
A general view of a Southwest Airlines jet photographed at LaGuardia Airport on Feb. 4, 2024, in the Queens borough of New York City. ((Photo by Bruce Bennett/Getty Images) / Getty Images)
The airline’s shares posted a nearly 7% increase in the morning as investors reacted to Elliott’s investment. The activist investor’s stake was first reported by The Wall Street Journal.
FOX Business reached out to Southwest for comment.