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Southwest Airlines is facing pressure from activist investor Elliott Investment Management, prompting the airline to warn employees of upcoming “difficult decisions” to increase profits. Over the summer, Southwest announced significant changes to its business model, including the introduction of assigned seating, premium seating options, and red-eye flights. The airline is also adjusting its network to drive profitability, which may involve reducing its footprint in certain cities. While Southwest is not planning furloughs, staff may need to transfer to different locations as part of cost-cutting measures. Other carriers, like JetBlue, have also made route cuts to focus on revenue-generating flights. Southwest will provide more details on its initiatives and route changes at an investor day in Dallas. Elliott has been advocating for leadership changes at Southwest, leading to the announcement that executive chairman Gary Kelly will step down next year. The airline did not immediately respond to requests for comment on the employee message.

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