(Reuters) – Southwest Airlines has warned employees it will soon face 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 making changes to its flight routes and schedules to boost 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 did not provide any details about the ongoing moves.
Southwest did not immediately respond to a Reuters request for comment.
The airline has struggled to find its footing following the Covid-19 pandemic, in part due to Boeing’s delivery delays and industry-wide overcapacity in its domestic market.
It plans to offer assigned seats and extra legroom to attract premium travelers and start overnight flights. It will present the details to investors on September 26.
Earlier this week, Reuters reported that Elliott, which owns 10% of Southwest’s common stock, told one of the company’s top unions that it still wants to replace CEO Robert Jordan, even after the carrier promised to shake up its board.
(Reporting by Surbhi Misra in Bengaluru; Editing by Paul Simao)