Bloomberg reports: Southwest Airlines warns employees of “difficult decisions”

(Reuters) – Southwest Airlines has warned its employees that the company will soon make tough decisions as part of its strategy to restore profits and meet the demands of 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 added, citing a transcript of a video message from Chief Operating Officer Andrew Watterson to employees.

“I apologize in advance if this affects you as an individual,” Watterson said, according to the report, adding that he did not want to provide details about the upcoming measures.

Southwest did not immediately respond to Reuters’ request for comment.

The airline has struggled to get back on its feet following the COVID-19 pandemic, partly due to delays in Boeing aircraft deliveries and industry-wide overcapacity in the domestic market.

The company plans to offer fixed and extra legroom seats to attract premium travelers and introduce night flights. Details will be presented to investors on September 26.

Earlier this week, Reuters reported that Elliott, which owns 10 percent of Southwest’s common stock, told one of the company’s main unions that it still wanted to replace CEO Robert Jordan, even though the airline announced it would restructure its board.

(Reporting by Surbhi Misra in Bengaluru; Editing by Paul Simao)