Southwest Airlines: Elliott Had Easier Options


  • Elliott Investment Management made a large investment in Southwest Airlines Co. due to underperformance, calling for a leadership upgrade and predicting a 77% upside potential.
  • The airline faces revenue and cost performance issues, needing a vast operating improvement to justify the current price compared to legacy airlines.
  • Legacy airlines like Delta and United are better deals, trading at lower P/E ratios and not requiring strategic turnarounds to perform well.

Boeing 737 Southwest Airlines takes off from McCarran International Airport


Elliott Investment Management made a large investment in Southwest Airlines Co. (NYSE:LUV) due to huge underperformance by the airline. The ironic part is that the better performing airline stocks are incredible bargains and don’t require strategic

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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