Southwest Airlines Braces for Proxy Fight with Elliott

Southwest Airlines CEO Bob Jordan is rallying support from investors, employees, and union leaders as he braces for a proxy fight with activist hedge fund Elliott Investment Management. Elliott, which disclosed a significant stake in the airline in June, aims to replace Jordan and two-thirds of the board, citing Southwest's underperformance and outdated business practices. Despite Elliott’s push for leadership changes and a comprehensive business review to boost the company's stock price by 86%, Jordan insists on maintaining the current direction and has labeled the hedge fund's approach as predatory. Southwest has struggled post-pandemic, with rising operating costs and declining margins, and has introduced measures like assigned seating and overnight flights to improve profitability. The outcome of this boardroom battle remains uncertain, with both sides preparing for a contentious showdown.