Elliott Statement on Southwest Airlines' Investor Day

Core Viewpoint - Elliott Investment Management expresses skepticism regarding Southwest Airlines' leadership and their ability to implement promised improvements, citing a history of unmet financial goals and ineffective management under CEO Bob Jordan [1][2]. Group 1: Leadership and Management Concerns - The current leadership, particularly CEO Bob Jordan, is criticized for delivering poor financial results and being unfit to lead transformative changes at Southwest Airlines [2]. - Elliott highlights that previous promises of profitability enhancements in 2021 and 2022 have not materialized, resulting in significant financial deterioration [1][2]. - The announcement of long-term initiatives, such as assigned seating and premium products, is viewed as a sign of Jordan's inability to execute effectively, especially when competitors have implemented similar changes more rapidly [2]. Group 2: Shareholder Engagement and Actions - Elliott plans to call a special meeting to allow shareholders to voice their opinions and push for the election of a new, independent Board of Directors [3]. - The firm encourages shareholders to reclaim their shares in preparation for this meeting, aiming to secure a stronger future for Southwest Airlines [3]. Group 3: Investment Position - As of the current date, Elliott holds approximately 11.0% of Southwest Airlines' common stock, equating to 61,116,500 shares, along with derivative agreements covering an additional 4,808,000 shares [7][8]. Group 4: Company Background - Elliott Investment Management manages approximately $69.7 billion in assets as of June 30, 2024, and has a long history in the investment management industry, founded in 1977 [9].