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Southwest shares jump after activist Elliott buys $2B stake

Southwest Airlines shares soared on Monday after activist investor Elliott Investment Management acquired $2 billion worth of stock in the airline.

In a letter sent Monday to Southwest’s board of directors, Elliott argued the airline needs to improve its financial performance and called for management changes and other measures.

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In their letter, Elliott executives said Southwest should restructure its board with “new truly independent directors” and hire new outside executives. They also urged the airline to create a committee “to evaluate all available opportunities to rapidly restore the company’s performance to peak levels.”

A bird's-eye view of a Southwest Airlines jet at LaGuardia Airport in Queens, New York City on February 4, 2024.

A bird’s-eye view of a Southwest Airlines jet at LaGuardia Airport in Queens, New York City on February 4, 2024. (Photo: Bruce Bennett/Getty Images) / Getty Images

The airline’s shares rose about 7% in the morning as investors reacted to Elliott’s investment, which was first reported by The Wall Street Journal.

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FOX Business has reached out to Southwest Airlines for comment.

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