(Reuters) – Southwest Airlines has warned employees that it will soon make tough decisions as part of a strategy to restore profits and counter demands from activist investor Elliott Investment Management, Bloomberg News reported on Saturday.
The airline is considering making changes to its flight routes and schedules to increase revenue, the report said, citing the transcript of a video message to employees by Chief Operating Officer Andrew Watterson.
“I apologize in advance if this has affected you as an individual,” Watterson said, according to the report, adding that he did not provide details on the upcoming steps.
Southwest did not immediately respond to a Reuters request for comment.
The airline has struggled to find its footing in the wake of the COVID-19 pandemic, partly due to aircraft delivery delays from Boeing and industry-wide overcapacity in the domestic market.
It plans to offer assigned and extra legroom seats to attract premium travelers and launch night flights. It will present the details to investors on September 26.
Earlier this week, Reuters reported that Elliott, who owns 10% of Southwest’s common stock, told one of the company’s top unions that he still wants to replace CEO Robert Jordan, even after the airline vowed to dissolve the board shake.
(Reporting by Surbhi Misra in Bengaluru; Editing by Paul Simao)