Activist Investor Elliott Criticizes Southwest Again After Airline Announces Changes [Video]

The friction between Elliott Investment Management and the leadership of Southwest Airlines (LUV) intensified after the private equity firm blasted the airline’s management for acting too late to initiate financial reforms.

On Thursday, Southwest announced a series of steps to boost revenue, including ending its long-held practice of open seating and offering premium seating. It also plans to begin operating on a 24-hour schedule with overnight flights.

In a statement on behalf of Partner John Pike and Portfolio Manager Bobby Xu, Elliott said that the moves come “more than a decade late, and after a 50% decline in its share price over the past three years.” It added that the actions were made by “the same leadership team that has presided over a series of failed measures to improve performance, repeated operational missteps and poor financial results.”

Elliott went on to say that management was “simply not doing its job” by failing to recognize that …