Southwest Airlines shares jumped on Monday after activist investor Elliott Investment Management took a $2 billion stake in the carrier.
Elliott, in a letter sent to Southwest's board on Monday, called on the airline to make leadership changes and take other actions, arguing the carrier needed to improve its financial performance.
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In the letter, Elliott executives said Southwest should remake its board with "new, truly independent directors" and hire new leadership from outside the company. It also urged the carrier to form a committee to "evaluate all available opportunities to rapidly restore the Company’s performance to best-in-class standards."
The airline’s shares posted a nearly 7% increase in the morning as investors reacted to Elliott’s investment. The activist investor’s stake was first reported by The Wall Street Journal.
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FOX Business reached out to Southwest for comment.
