Hedge fund Elliott Management has taken a $1.9 billion stake in major airline Southwest Airlines, making it one of the company's largest shareholders. Elliott is known as an activist investor and will likely push for changes at Southwest since it sees potential for improved strategy and performance. The company, which exclusively operates Boeing 737s, has been adversely affected by delivery delays and issues, resulting in the reduction of routes to some airports. The hedge fund criticized Southwest's leadership in a letter, saying CEO Bob Jordan and executive chairman Gary Kelly have overseen poor stock and operational performance.
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00:00It's Benzinga, and here's what's on the block.
00:02Hedge fund Elliott Management has taken a sizable $1.9 billion stake in major airline
00:07Southwest Airlines, making it one of the company's largest shareholders.
00:11Elliott is known as an activist investor and will likely push for changes at Southwest
00:16since it sees potential for improved strategy and performance.
00:19The company, which exclusively operates Boeing 737s, has been adversely affected by delivery
00:25delays and issues resulting in the reduction of routes to some airports.
00:29The hedge fund criticized Southwest's leadership in a letter saying CEO Bob Jordan and Executive
00:33Chairman Gary Kelly have overseen poor stock and operational performance.
00:37For all things money, visit Benzinga.com.