(Reuters) – Southwest Airlines has warned employees it will soon make tough decisions as part of a strategy to restore profits and counter lawsuits from activist investor Elliott Investment Management, Bloomberg News reported on Saturday.
The airline is considering changes to its routes and flight schedules to boost revenue, the report added, citing a transcript of a video message to employees from Chief Operating Officer Andrew Watterson.
“I apologize in advance if you as an individual are affected by this,” Watterson was quoted as saying, adding that he did not offer any details about pending moves.
Southwest did not immediately respond to a Reuters request for comment.
The airline has been struggling to find its footing following the COVID-19 pandemic, in part due to delays in Boeing aircraft deliveries and industry-wide overcapacity in the domestic market.
The company plans to offer assigned seating and extra legroom to attract premium-class travelers and to begin operating overnight flights. It will present details to investors on Sept. 26.
Earlier this week, Reuters reported that Elliott, who owns 10% of Southwest’s common stock, told one of the company’s main unions that he still wants to replace CEO Robert Jordan, even after the airline pledged to restructure its board of directors.
(Reporting by Surbhi Misra in Bengaluru; editing by Paul Simao)