Wednesday, June 26, 2024 Elliott Investment Management L.P. (“Elliott”) has issued a statement today on behalf of Partner John Pike and Portfolio Manager Bobby Xu regarding Southwest Airlines Co.
(NYSE: LUV) and its recent announcement about reducing revenue guidance. Today’s announcement signifies Southwest Airlines’ eighth reduction in guidance over the past 18 months. The company now anticipates a 4% to 4.
5% decline in RASM (revenue per available seat mile) for the second quarter, a sharp decrease compared to the guidance provided just two months ago. Despite management’s assurances of improvement and their recent pledge to focus on “delivering operational excellence,” Southwest continues to lag behind in revenue performance compared to its industry peers. Southwest’s leadership appears unable to effectively navigate the challenges of the modern airline industry.
The company’s statement acknowledges difficulties in adapting to the current environment, complexities that its competitors seem better equipped to handle. This latest development underscores the pressing need for significant leadership changes within Southwest Airlines. Elliott remains committed to advocating for the necessary changes to ensure the company’s future success.
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