Transportation
Southwest Air Shares Jump on Turnaround Plan, Stock Buyback
- Carrier details policy changes, raises outlook at investor day
- Activist Elliott is seeking board overhaul, business review
This article is for subscribers only.
Southwest Airlines Co.’s shares surged the most in almost four years after the carrier unveiled a stock buyback plan and detailed major policy changes, part of a plan to revitalize its operations and fend off an activist investor.
The airline will begin selling assigned seats late next year and introduce a premium fare option offering extra leg room, according to a statement Thursday. The changes break from tenets that helped set Southwest apart for decades, after the carrier was slow to embrace the industry’s push to capture growing demand for premium flying options.