Southwest Airlines is facing significant pressure from its second-largest shareholder, Elliott Management, which is calling for a special meeting of shareholders to vote on a slate of eight new directors. This move would represent a majority of the struggling airline's board. Elliott Management, led by billionaire investor Paul Singer, has been critical of Southwest in recent months and is advocating for leadership changes and a strategic overhaul.
Elliott Management, which now holds an 11% stake in Southwest, has expressed dissatisfaction with the company's response to their concerns. The hedge fund has been pushing for a more substantial reconstitution of the board, citing the need for a shift in strategy to unlock the airline's potential.
