An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

FILE – A Southwest Airlines jetliner waits on a runway for departure from Denver International Airport Friday, Sept. 1, 2023, in Denver. Activist shareholder Elliott Investment Management has taken a $1.9 billion stake in Southwest Airlines. The investment firm said Monday, June 10, 2024, that Southwest failed to keep up with other airlines and suffers from outdated technology and operations. (AP Photo/David Zalubowski, File)

UPDATED: June 10, 2024 at 4:40 p.m.

Activist shareholder Elliott Investment Management has taken a $1.9 billion stake in Southwest Airlines and wants to get rid of the CEO. The investment firm alleged that Southwest failed to keep up with other airlines and suffers from outdated technology and operations. In a letter to Southwest’s board, the firm said that Southwest's “stubborn unwillingness to evolve” is causing deeply disappointing financial results. The airline's shares have lost more than 50% in the last three years. Southwest says it's confident that CEO Robert Jordan and Executive Chairman Gary Kelly can carry out plans to improve returns for shareholders. Shares in the airline rose 7% on Monday.