Activist Elliott Management has a $1.9 billion stake in Southwest Airlines and plans to push for leadership changes at the struggling company.Southwest has struggled with challenges including Boeing's 737 Max delivery delays.Elliott is seeking to replace Southwest CEO Bob Jordan and chair Gary Kelly, the activist said in a letter Monday.
The size of Elliott's stake makes the activist one of Southwest’s largest shareholders, according to FactSet. Shares of Southwest were up roughly 7% in premarket trading Monday. The company had a market capitalization of $16.6 billion as of Friday's close. Elliott said it spoke with numerous former Southwest employees during an 18-month research period, according to a presentation. The activist also said it spoke with shareholders and surveyed more than 2,000 flyers to understand why consumers chose Southwest over other airlines, according to that same presentation., the newest models of the plane which the carrier exclusively flies, as well as shifting travel demand patterns after the pandemic.
Southwest shares are down by more than 50% from three years ago when travel demand, led by domestic trips, was starting to come back. In contrast,India's aviation growth still strong but external risks linger, Vistara CEO says
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »