Activist investor Elliott Investment Management has taken a large stake in Southwest Airlines Co. and intends to push for changes, the Wall Street Journal reported late Sunday.
Citing sources familiar with the matter, the Journal reported Elliott has built a stake worth nearly $2 billion, making it one of the airline’s largest shareholders.
Elliott plans to speak with Southwest’s management about potential changes, according to the Journal, though no specific changes were mentioned.
Neither Southwest nor Elliott immediately responded when asked for comment.
Southwest shares LUV, -0.36% have sunk more than 50% over the past three years, and are down about 4% year to date.
Southwest posted quarterly earnings in April that missed expectations, and announced cost cuts, including dropping some routes, as part of a plan to return to profitability. It also said it may end its hallmark open-seating policy in an effort to improve performance.