Activist Investor Slams Southwest’s Outlook, Says Airline is ‘Unable to Adapt’
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Elliott Investment Management, which has a $2 billion activist stake in Southwest, was highly critical of the airline’s revenue forecast cut for the second quarter.
Activist investor Elliott Investment Management slammed Southwest on its weaker second-quarter financial outlook on Wednesday.
“Southwest is led by a team that has proven unable to adapt to the modern airline industry,” the hedge fund said, “the Company’s release today seems to admit as much by stating that the revenue guidance reduction was the result of ‘complexities in adapting’ to the current environment — complexities that Southwest’s peers seem able to adapt to.”
The airline expects to see record quarterly operating revenues for the second quarter.
“The Company remains intensely focused on improvi
