Activist investor Elliott Management has built a nearly $2 billion stake in Southwest Airlines, according to a report by the Wall Street Journal. Elliott plans to push for significant changes aimed at reversing the airline's underperformance. The hedge fund has called for upgraded leadership, including the ousting of the CEO and Executive Chairman, and a comprehensive business review. Elliott disclosed a $1.9 billion position and believes that Southwest's stock can achieve a target price of $49 per share, representing a 77% return. Following the news, Southwest Airlines' shares surged, rising about 7% in premarket trading.
