Investing.com — Southwest Airlines (NYSE:) and Elliott Investment Management are closing in on a settlement that would avoid the carrier’s first proxy fight since 2017, according to Bloomberg News.

Citing people familiar with the matter, Bloomberg said the airline and Elliott are negotiating a framework that would result in the activist investor taking less than a majority of seats on Southwest’s board.

A settlement could be announced as soon as Thursday, although nothing has been finalized yet and the deal could still fall through or change, Bloomberg reported. It was also unclear what a settlement would mean for the future of Southwest Chief Executive Officer Bob Jordan, the news service added.

Representatives from Southwest and Elliott both declined to comment, Bloomberg said.

In response to what it has described as “disappointing” financial returns, Elliott has previously nominated eight directors to Southwest’s board and has called for a special shareholders meeting in December. Southwest, however, has yet to set a date for the meeting.

Jordan is now under particular pressure to restore the firm’s long-term profitability. Southwest, which once posted 47 consecutive years of profit, has struggled to recover from the COVID-19 pandemic despite the broader airline industry seeing recently solid demand from travellers. The company has continued to support Jordan, saying he is the right leader to oversee a “significant transformation” of the business.

In a presentation in September, Southwest said its initiatives to drive growth in income are “well underway,” adding that about these efforts are projected to contribute roughly $4 billion to cumulative earnings before interest and taxes in 2027.

Dallas-based Southwest’s passenger volumes have remained below pre-pandemic levels, while aircraft delivery delays from Boeing (NYSE:) have also weighed on performance. It has also downgraded its outlook at least eight times over the past 20 months.

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