(Reuters) – Southwest Airlines has warned employees it will soon make tough decisions as part of a strategy to restore profits and fend off demands from activist investor Elliott Investment Management, Bloomberg News reported on Saturday.
The airline is considering changes to its flight routes and schedules to boost revenue, the report said, citing a transcript of a video message from Chief Operating Officer Andrew Watterson to employees.
“I apologize in advance if this causes you any inconvenience as an individual,” Watterson said, according to the report, adding that he would not provide details about the upcoming moves.
Southwest did not immediately respond to a Reuters request for comment.
The airline has struggled to get back on its feet after the COVID-19 pandemic, partly due to delays in aircraft deliveries from Boeing and overcapacity in the domestic market across the industry.
It plans to offer assigned and extra legroom seats to attract premium travellers and launch night flights, with details to be presented to investors on September 26.
Earlier this week, Reuters reported that Elliott, which owns 10% of Southwest common stock, had told one of the company's key unions that it still wants to replace CEO Robert Jordan, even after the airline promised to shake up its board.
(Reporting by Surbhi Misra in Bengaluru; Editing by Paul Simao)
