Southwest Airlines Co. - LUV STOCK NEWS

Southwest Airlines (NYSE: LUV) has announced that its Flight Simulator Technicians, represented by the International Brotherhood of Teamsters (IBT) Local 19, have voted to approve a new contract. This marks the successful ratification of all labor contracts for the airline's union-represented workgroups, which account for approximately 83% of Southwest's employees.

The new contract for Flight Simulator Technicians includes increased pay rates, a new Simulation Engineer classification, and maternity and parental leave benefits. It will remain in effect until September 2028. This achievement follows a two-year period during which all 12 union-represented workgroups ratified new contracts, demonstrating Southwest's commitment to its employee-first culture and providing competitive pay and benefits.

Elliott Investment Management L.P. has released a statement regarding Southwest Airlines Co. (NYSE: LUV) following the resignation of seven directors. This unprecedented move comes after shareholder feedback, with Elliott expressing satisfaction that the board is recognizing the need for change. The investment firm, which holds a combined economic exposure of approximately 11.0% in Southwest Airlines, hopes to engage with remaining directors to align on further necessary changes.

Elliott emphasizes the urgent need for thoughtful, deliberate change at Southwest and believes their proposed nominees are qualified to stabilize the board and set a new direction for the airline. The firm intends to file a proxy statement with the SEC to solicit proxies for electing their slate of director candidates and other proposals at the next shareholder meeting.

Southwest Airlines (NYSE: LUV) announced significant board refreshment and governance changes. Key points include:

1. Six directors will retire in November 2024, and Executive Chairman Gary Kelly will retire after the 2025 annual meeting.

2. The board plans to appoint four new independent directors, potentially including candidates proposed by Elliott Investment Management.

3. The Executive Committee structure has been eliminated, and a new Finance Committee created.

4. The board reiterates support for CEO Bob Jordan and commits to holding management accountable for results.

5. These changes aim to enhance shareholder value and address concerns raised by Elliott Investment Management.

Southwest Airlines Co. (NYSE: LUV) has reached a Tentative Agreement with the International Brotherhood of Teamsters (IBT) Local 19 for a new collective bargaining agreement for its Flight Simulator Technicians. This group, comprising over 50 employees, provides important maintenance and engineering support for the company's flight training equipment. The agreement marks a significant milestone, as 11 out of Southwest's 12 union-represented workgroups have ratified new agreements since October 2022.

Southwest Airlines, known for its employee-first culture and no-layoff policy, operates across 117 airports in 11 countries. The airline carried over 137 million customers in 2023 and has maintained 47 consecutive years of profitability for shareholders. Southwest is also committed to achieving net zero carbon emissions by 2050, focusing on a three-pillar strategy to meet its environmental goals.

Southwest Airlines (NYSE: LUV) reported a strong operational performance for the summer 2024 travel season. The airline achieved a 100% completion factor on Labor Day, with zero cancellations. For the entire summer period, Southwest carried a record 54 million customers across more than 414,000 flights, improving on-time performance by two percentage points compared to 2023. The airline maintained a 99.3% completion factor throughout the summer. During the Labor Day weekend alone, Southwest connected 1.8 million customers on over 14,500 scheduled flights, achieving a 99.9% completion factor. CEO Bob Jordan expressed pride in the employees' focus on safety and operational excellence, noting continued strong travel demand in the third quarter.

Southwest Airlines (NYSE: LUV) has announced the return of its popular Companion Pass promotion. Rapid Rewards Members who register and purchase a qualifying flight between Sept. 3-5, 2024, and travel by Nov. 20, 2024, can earn a promotional Companion Pass valid from Jan. 6 to March 6, 2025. This pass allows a designated companion to fly for free (excluding taxes and fees) on flights purchased by the Member.

For the first time, Members can use Rapid Rewards points, a combination of cash and points, or other eligible forms of payment for qualifying flights. The promotion aims to showcase the benefits of Southwest's Rapid Rewards program, which offers no blackout dates and non-expiring points. This -time offer provides an opportunity for Members to experience one of the airline's most valued perks.

Southwest Airlines (NYSE: LUV) has announced the return of its -time tier acceleration promotion for Rapid Rewards Members. The promotion offers four ways to earn A-List or A-List Preferred tier status faster through Dec. 31, 2025:

• Double tier qualifying points on flights through Nov. 30, 2024
• Reward travel counts towards tier status
• Earn with Southwest Rapid Rewards Credit Cards from Chase
• Earn with Rapid Rewards partners (new feature)

The promotion aims to provide members with faster access to benefits such as earlier boarding, boosted points, free same-day standby, and same-day change. A-List Preferred members also enjoy free WiFi and premium drinks.

Elliott Investment Management sent an open letter to Southwest Airlines shareholders on August 26, 2024, advocating for comprehensive changes due to inadequate leadership. Elliott, holding an 11% economic interest in Southwest, criticized CEO Bob Jordan and Executive Chairman Gary Kelly for years of mismanagement, causing a 50% decline in shareholder value over the past three years.

The letter emphasized the need for a transparent and credible process to revive Southwest's performance. Elliott highlighted the failure of the current leadership, noting their use of entrenchment tactics like "poison pills" and unilateral Board changes. Elliott plans to meet with Southwest's Board on September 9 and hopes for a willingness to address leadership issues.

Elliott's proposed solution includes nominating ten independent directors and forming a board-level committee to drive transformational change and ensure long-term performance improvements. The letter condemns the current leadership's short-term strategies and insists on the necessity for new executive leadership.

Southwest Airlines (NYSE: LUV) has extended its flight schedule through April 7, 2025, offering new international and domestic routes. The airline is adding nonstop service from Nashville to Cabo San Lucas and Punta Cana, and from Sacramento to Puerto Vallarta, starting March 8, 2025. New domestic routes include Austin to Milwaukee and Reno, Nashville to Indianapolis, and Sacramento to Tucson.

Southwest is also increasing flights for fall football matchups, supporting SEC fans and adding service for a major rodeo event in Las Vegas. The airline is expanding its redeye flight options from Denver, San Diego, and Sacramento beginning March 6, 2025. These additions aim to meet customer demand and offer more flexibility for travelers.