Southwest Airlines CEO Andrew Watterson warned employees of upcoming 'difficult decisions' as the airline faces pressure from activist investor Elliott Investment Management to boost profits. The Dallas-based carrier plans to modify its route and flight network, with Watterson indicating 'bigger changes for some cities.' The airline is seeking to improve its financial performance by focusing on revenue growth rather than cost-cutting measures.
Southwest Airlines warned employees of looming "difficult decisions" as the carrier faces pressure from activist investor Elliott Investment Management to boost profits. The Dallas-based carrier's chief operating officer, Andrew Watterson, said in a Sept. 19 video to workers that the airline’s soon-to-be-announced strategy will include route and flight network modifications, Bloomberg reported, citing a transcript.
We’re trying to get more out of what we already have, but getting our costs under control is not going to be enough, because we’re not going to do this on the back of employees or customers. Therefore, it has to be on the revenue side that we make the traction to get our profitability and equation balanced," he said, the outlet reported. FOX Business reached out to Southwest for comment.
The airline generated $7.35 billion in operating revenues in the second quarter, marking a year-over-year increase of 4.5%. Its quarterly net income fell 46% year over year to $367 million. It flew over 137 million passengers last year. GET FOX BUSINESS ON THE GO BY CLICKING HERE FOX Business' Daniella Genovese contributed to this report.
Southwest Airlines Activist Investor Elliott Investment Management Profits Route Network Modifications
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