Southwest Airlines Amends Agreement With Elliott For Increased Economic Exposure, Announces Departure Of Key Executive
The amendment allows Elliott to increase its economic exposure in Southwest Airlines from 14.9% to 19.9%. It also extends the restriction on Elliott to acquire more than the maximum beneficial ownership of 12.49% of the outstanding common stock of Southwest Airlines.
FollowSouthwest Airlines Co. (LUV) said in an exchange filing on Wednesday that it has entered into an amendment to the cooperation agreement with activist investor Elliott Investment Management that increases Elliott's maximum aggregate economic exposure in the airline.
The amendment allows Elliott to increase its economic exposure in Southwest Airlines from 14.9% to 19.9%. It also extends the restriction on Elliott to acquire more than the maximum beneficial ownership of 12.49% of the outstanding common stock of Southwest Airlines.
Funds managed by the activist investor are believed to own an 11% stake in the company currently.
Meanwhile, Southwest Airlines also said its Executive Vice President and Chief Transformation Officer, Ryan Green, has informed the company about his decision to step down effective April 1.
Southwest Airlines has been in the news after the company said it would lay off 15% of its corporate workforce as part of a restructuring plan.
The job cuts would affect about 1,750 employees, almost entirely in corporate overhead and leadership positions. The airline company would also lay off 11 employees in senior leadership positions, including vice presidents and above. The layoffs are expected to be completed by the end of the second quarter, the company said.
Recently, the airline announced Tom Doxey as Executive Vice President and Chief Financial Officer, effective March 10.
Prior to this, Doxey served as President of Breeze Airways, leading the airline through a transformation from a startup to profitability in under two years.
On Stocktwits, retail sentiment continued to trend in the ‘extremely bullish’ territory (85/100), accompanied by significant retail chatter.
LUV’s Sentiment Meter and Message Volume as of 9:39 a.m. ET on Feb. 19, 2025 | Source: Stocktwits
Southwest Airlines shares traded marginally in the green on Wednesday morning. The stock has lost over 10% in 2025 and is down 11% over the past year.
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