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Southwest Airlines warns staff of 'tough decisions' ahead, Bloomberg reports
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Southwest Airlines warns staff of 'tough decisions' ahead, Bloomberg reports
Sep 21, 2024 8:51 PM

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.

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