(Reuters) – Southwest Airlines Co warned its employees it will soon make tough decisions as part of a strategy to restore profits and face demands from activist investor Elliott Investment Management Inc, Bloomberg News reported on Saturday.
The airline is considering making changes to its flight routes and schedules to boost revenue, the reports added, citing a video message to employees by Chief Operating Officer Andrew Waterson.
“I apologize in advance if you as an individual are affected by this,” Waterson said, according to the report, adding that he did not provide any details on the pending moves.
Southwest did not immediately respond to Reuters’ request for comment.
The airline has struggled to find its footing after the COVID-19 pandemic, partly due to Boeing (NYSE:BA) aircraft delivery delays and industry-wide overcapacity in the domestic market.
The company plans to offer dedicated seats and extra legroom to attract premium travelers and start operating overnight flights. The company will present details to investors on September 26.
Earlier this week, Reuters reported that Elliott, which owns 10% of Southwest’s common stock, told one of the company’s major labor unions that it still wanted to replace CEO Robert Jordan, even after the company pledged to make changes to its board of directors.