On July 25, 2024, Southwest Airlines announced sweeping changes including plans to end open seating, as it faces investor pressure to improve results and shore up its share price. The Company stated that earnings have been under pressure in recent quarters, partly because of delays in plane deliveries from Boeing, which have hit revenue and worsened cost pressures. The Company also stated that it is facing pricing pressure as an industry-wide overcapacity in the domestic market has dampened airfares.

The Company added that Elliott Investment Management is pushing for leadership changes, saying the Company needs fresh perspectives to compete in the modern airline industry and has warned of a proxy fight. The Company stated that its CEO, Bob Jordan, said that Elliott Investment Management has not shown willingness to engage in any meaningful conversations, adding that the airline is taking steps to transform itself and hit its financial goals. The Company stated that it currently doesn’t offer these products but said that it now plans on offering seats with extra legroom on its airplanes.

The Company said that adding premium seats will require little investment, and it did not quantify the boost to its earnings and revenue, either. The Company added that Elliott Investment Management reiterated its call for a new leadership at the carrier.

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