Elliott Targets Southwest CEO in $1.9 Billion Activist Push (1)

Elliott Investment Management called for new leadership at Southwest Airlines Co. and an overhaul of its business strategy after revealing a $1.9 billion stake in the US carrier.

The activist firm disclosed the investment Monday in a letter criticizing “Southwest’s poor execution and leadership’s stubborn unwillingness to evolve the company’s strategy.” Elliott specifically called out Southwest Chief Executive Officer Bob Jordan and Executive Chairman Gary Kelly for missteps that the firm said have hurt shareholders.

“Southwest’s executive chairman and its CEO, who have spent a combined 74 years at the company, have presided over a period of severe underperformance, and ...