Southwest Airlines is warning staff about “tough decisions” ahead, Bloomberg reports

(Reuters) – Southwest Airlines has warned employees that it will soon make tough decisions as part of a strategy to restore profits and counter demands from activist investor Elliott Investment Management, Bloomberg News reported on Saturday.

The airline is considering tweaking its routes and flight schedules to boost revenue, the report added, citing the transcript of a video message to employees by chief operating officer Andrew Watterson.

“I apologize in advance if you, as an individual, are affected by this,” Watterson said, according to the report, adding that he did not elaborate on the pending moves.

Southwest did not immediately respond to a Reuters request for comment.

The airline has struggled to find its footing following the COVID-19 pandemic, in part due to delays in the delivery of Boeing jets and industry-wide overcapacity in the domestic market.

It plans to offer assigned seating and extra legroom to attract premium travelers and start overnight flights. It will present the details to investors on September 26.

Earlier this week, Reuters reported that Elliott, which owns 10 percent of Southwest’s common stock, told one of the company’s top unions that it still wants to replace CEO Robert Jordan even after the carrier committed to changing its board of directors.

(Reporting by Surbhi Misra in Bengaluru; Editing by Paul Simao)