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Southwest Airlines has warned employees that it will have to make “difficult decisions” ahead to boost profits as the carrier faces pressure from activist Elliott Investment Management, which has sought leadership changes at the company. Southwest over the summer announced a host of major changes to its more than 50-year-old business model to drum up revenue. It plans to ditch open seating for assigned seats, offer seats with more legroom that fetch a higher fare and start red-eye flights. We also have to change our network,” Watterson said in the video, a transcript of which was seen by CNBC. Southwest did not immediately comment on the staff message.
Persons: Andrew Watterson, , ” Watterson, Elliott, Gary Kelly Organizations: Southwest Airlines, Elliott Investment Management, Google, CNBC, JetBlue, Southwest, Wing Locations: It’s, Dallas
Washington CNN —Southwest Airlines said it is testing software fixes that the company developed after its Christmas travel meltdown, as the airline faces multiple federal investigations. The software fixes are an “upgrade,” rather than a replacement of the crew scheduling system, Southwest executives said on a conference call with reporters Thursday. The company decided to keep the underlying software system because it “generally worked as designed” even during the meltdown, CEO Bob Jordan said. “We haven’t even talked cost, so I don’t know if it’s going to cost us anything or not,” said Southwest Chief Operations Officer Andrew Watterson. That external report should be delivered in the coming weeks and “we will attack it with a sense of urgency,” Jordan said.
Why Southwest is still melting down
  + stars: | 2022-12-29 | by ( David Goldman | ) edition.cnn.com   time to read: +6 min
Still, Southwest canceled another 2,300 flights today, long after its rivals had resumed normal service. Here’s why is Southwest taking so long to get its operations back on track: Southwest got unlucky with the location of the storm and its timing. And outdated scheduling technology left Southwest scrambling to match crew with planes. Bad luckThe storm hit Chicago and Denver hard, where Southwest has two of its biggest hubs – Chicago Midway airport and Denver International airport. Although Southwest says it was fully staffed for the holiday weekend, illness makes adjusting to increased system stress difficult.
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