Elliott Investment Management bought a $1.9 billion stake in financially struggling Southwest Airlines, calling for the ouster of CEO Robert Jordan and other leadership changes.
The fund’s executives sent a letter to Southwest’s board on Monday describing Jordan’s performance as a disappointment for shareholders, employees, and customers. Southwest’s stock price has dropped more than 50% in the last three years.
The investment company said Southwest needed to update its operational and technological systems and said the current executive team is “not up to the task of modernizing Southwest.”
Southwest shares rose 7% Monday, its second-best day since 2020.