Sept 21 (Reuters) - Southwest Airlines ( LUV ) has
warned employees that it will soon make tough decisions as part
of a strategy to restore profits and counter demands from
activist investor Elliott Investment Management, Bloomberg News
reported on Saturday.
The airline is considering making changes to its flight
routes and schedules to increase revenue, the report added,
citing the transcript of a video message to employees by Chief
Operating Officer Andrew Watterson.
"I apologize in advance if you as an individual are affected
by it," Watterson said, according to the report, adding that he
didn't offer any details on the pending moves.
Southwest ( LUV ) did not immediately respond to a Reuters request
for comment.
The airline has been struggling to find its footing after
the COVID-19 pandemic, in part due to Boeing's ( BA ) aircraft
delivery delays and industry-wide overcapacity in the domestic
market.
It plans to offer assigned and extra-legroom seats to
attract premium travelers and start overnight flights. It will
present the details to investors on Sept. 26.
Earlier this week, Reuters reported that Elliott, which owns
10% of Southwest's ( LUV ) common shares, told one of the company's top
unions it still wants to replace CEO Robert Jordan, even after
the carrier pledged to shake up its board.