Elliott Boosts Stake in Southwest Air, Advancing Overhaul Push

Elliott Investment Management has increased its equity stake in Southwest Airlines Co. to 9.7%, nearing the amount needed to call a special shareholder meeting at which the activist hopes to replace most of the carrier’s board.

The larger holding, up from about 8% previously, was disclosed in a regulatory filing on Monday, just after Elliott renewed its call for sweeping leadership and operational changes at Southwest in a letter to shareholders. The activist needs a 10% stake in order to call a special gathering for Southwest investors to vote on its director nominees.

The latest volleys advance Elliott’s campaign to ...