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An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

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Southwest Airlines Co. News

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Activist shareholder Elliott Investment Management has taken a $1.9 billion stake in Southwest Airlines and wants to get rid of the CEO. The investment firm said Monday that Southwest failed to keep up with other airlines and suffers from outdated technology and operations.

DALLAS — Activist shareholder Elliott Investment Management has bought a $1.9 billion stake in Southwest Airlines and is seeking to force out the CEO of the airline, which has struggled with operational and financial problems.In a letter to Southwest’s board, the investment firm complained that Southwest’s stock price has dropped more than 50% in the last three years.

“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,” the investment firm said in the letter, dated Monday.

 

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