Southwest Airlines (LUV) has announced plans to reduce its service to Atlanta, Georgia starting in 2025 and eliminate more than 300 pilots and flight attendants as it looks to save money.
The changes were announced a day before the airline holds its annual investor day and provides a corporate update.
The cost reductions also come as Southwest faces growing pressure from activist investor Elliott Management.
Southwest has told its employee unions that it plans to eliminate 200 flight attendant positions and 140 pilots starting in spring 2025.
The carrier is reducing its number of flights to-and-from Atlanta, the world’s busiest airport. The moves come as Elliott Management ratchets up pressure on Southwest’s leadership team.
The activist investor has taken a big stake in the airline and is demanding changes, including a new CEO.
In August, Elliott Management outlined plans to nominate 10 new directors to Southwest’s 15-person board, including former Air Canada (AC) chief executive officer (CEO) Robert Milton.
Elliott has also called for current Southwest CEO Robert Jordan and Executive Chairman Gary Kelly to be replaced.
In July, Southwest announced that it is getting rid of open seating and will offer extra legroom on its airplanes, the biggest changes at the carrier in its 50-year history.
The stock of Southwest Airline’s has declined 48% over the last five years and currently trades at $28.39 U.S. per share.
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