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