FX.co ★ Southwest Airlines Reiterates Willingness To Meet With Elliott

Southwest Airlines Co. (LUV) has responded to a letter from Elliott Investment Management L.P., reaffirming its openness to engage with Elliott to discuss strategies for enhancing shareholder value. Southwest stated that it is thoroughly reviewing Elliott's communication and presentation and looks forward to further discussions to gain a deeper understanding of Elliott's perspective on the company.

Southwest Airlines expressed its confidence in its current strategy, planning, and team, emphasizing its commitment to driving long-term shareholder value. The airline is focused on restoring its industry-leading financial performance, successfully implementing its multi-faceted Tactical Action Plan to improve operational performance—initiated in the first quarter of 2023—alongside recent technology investments and operational resiliency programs, which resulted in the operation of 99% of scheduled flights in the first quarter of 2024. The company is eager to share more details about its plan at Investor Day in September.

Earlier today, Elliott announced that it had acquired a $1.9 billion stake in Southwest Airlines.

In its letter, Elliott highlighted issues such as the company’s poor financial performance, which it attributed to outdated business software, a flawed monetization strategy, poor leadership, and a lack of accountability.