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Southwest Airlines warns staff of ‘tough decisions’ ahead

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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.

The airline is considering making changes to its flight routes and schedules to increase revenue, the report added, citing the transcript of a video message to employees by Chief Operating Officer Andrew Watterson.

“I apologize in advance if you as an individual are affected by it,” Watterson said, according to the report, adding that he didn’t offer any details on the pending moves.

The airline has been struggling to find its footing after the COVID-19 pandemic, in part due to Boeing’s aircraft delivery delays and industry-wide overcapacity in the domestic market.

It plans to offer assigned and extra-legroom seats to attract premium travelers and start overnight flights. It will present the details to investors on Sept. 26.

 

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