Elliott Management, the activist investor that pushed Southwest to enact significant and sometimes controversial changes, appears to be stepping back from the Dallas-based carrier.
Southwest announced Tuesday that directors David Cush and Gregg Saretsky will depart its board on Feb. 23. Reuters reported that Cush and Saretsky represent Elliott.
With their exit, the board will shrink from 13 seats to 11. Three Elliott-appointed members will remain, at least for the time being.
The change in board membership comes as Elliott reduces its financial stake in Southwest. WFAA-TV reported this week that the company sold millions of shares between mid-December and mid-January. It now owns about 9% of Southwest, down from 16% at the peak of its investment.
Florida-based Elliott took a $1.9 billion position in Southwest in 2024. It immediately began pushing for changes, arguing that the airline’s leadership had not done enough to adapt to the times and was failing shareholders.
Under pressure from Elliott, Southwest moved away from its longtime low-price strategy. Last year, it began charging for checked bags, and in January assigned seating began. Under the new seating structure, customers can pay more for larger seats with more legroom.
Southwest customers upset by the changes have frequently aimed their criticism at Elliott, arguing that the investment management company destroyed the features that made Southwest unique and appealing to certain travelers.
It was also during the Elliott era that Southwest carried out its first ever mass layoffs. In April 2025, the carrier cut around 1,750 employees, about 15% of its corporate workforce.
At the same time, Southwest’ profitability has increased, and the airline’s stock price is considerably higher than it was in 2024.
