Stronger Southwest
Delivering a Stronger Southwest Airlines for Customers, Employees and Shareholders
Elliott Investment Management, one of Southwest Airline’s largest shareholders, believes that Southwest represents the most compelling airline turnaround opportunity in the last two decades. Our goal is to restore Southwest’s status as an industry-leading airline.
The Stronger Southwest plan calls for clear steps to improve performance for the benefit of customers, employees and shareholders, including:
- Restoring the efficiency required to continue offering low fares
- Modernizing the product offering to align with today’s customer preferences and expectations
- Strengthening management capabilities to ensure strong operational performance
- Facilitating investment in technology and new assets to run the reliable operation that passengers and employees deserve
As one of the Company’s largest investors, we look forward to collaborating with Southwest to restore best-in-class performance.
I would rate them as the worst-performing management team in airlines. This was a Company that has destroyed more value based on their own inaction than anyone else in the industry. They need to go.
Top Ten Active Shareholder
We plan to nominate ten independent, highly qualified candidates for Southwest’s Board.
These candidates were selected through a months-long global search for the best individuals with the optimal mix of backgrounds and expertise to address Southwest’s current challenges and deliver on the company’s potential.
The final group of candidates includes four former airline CEOs and Deputy CEOs and six candidates with complementary expertise in technology, hospitality, consumer-focused businesses, labor relations and regulatory oversight, including experience leading organizational change in these areas.
Sarah FeinbergFormer Transportation Regulator and Administrator of the Federal Railroad Administration
Hon. Joshua “Josh” GotbaumSeasoned Advisor to Companies and Labor Groups and Former Hawaiian Airlines Trustee
Southwest’s Response Shows the Need for New Leadership
Since we released our materials on June 10, 2024, Southwest’s leadership has:
- Reduced second quarter revenue guidance – representing the eighth guidance cut in 18 months
- Adopted a shareholder-unfriendly “poison pill” to prevent Elliott from increasing its ownership above 12.5%
- Added a hand-picked new director in a clear effort to entrench the current Board and management
- Initiated disappointing third-quarter guidance continuing the trend of deteriorating performance
Southwest’s response demonstrates how profoundly out of touch the Board and management are with shareholder sentiment and the reality of the situation.
The CEO is a headwind to a turnaround. Firing him is the tailwind.
Top Ten Active Shareholder
About Elliott
Founded in 1977, Elliott Investment Management L.P. (together with its affiliates, “Elliott”) is one of the oldest investment managers of its kind under continuous management. Elliott manages multi-strategy investment funds with approximately $69.7 billion of assets as of June 30, 2024. Our investors include pension funds, private endowments, charitable foundations, family offices and employees of the firm, and our offices are located in Florida, Connecticut, New York, California and London.
