Southwest Airlines nominates five Elliott-appointed directors for re-election

Elliott Investment Management holds a 9.4% stake in Southwest Airlines, part of a group of six entities owning more than 5% of the airline's shares. The Vanguard Group owns 11.4%.

Southwest Airlines faced a $140 million fine from the Department of Transportation in December 2023 for operational issues during the previous holiday season, which affected many passengers. The airline is in the process of compensating those affected and has rolled out new customer compensation policies for flight disruptions.

Rakesh Gangwal, who took over as Chair of the Board from Gary Kelly in July 2024, emphasized that the airline is under transformation partly due to rising operational costs. He highlighted recent engagements with shareholders focusing on changing the management culture to adapt to evolving industry demands.

Recent changes, such as the phasing out of free bags and introducing a basic economy product, mirror offerings from competitors like United Airlines. According to United's CEO, Scott Kirby, Southwest's new policies might pressure low-end customers to switch to other airlines, potentially affecting margins.