Elliott Management's $1.9 billion investment in Southwest Airlines caused a 9% surge in the airline's stock price, reaching $29.66.

The hedge fund is advocating for the removal of CEO Robert Jordan due to financial struggles and outdated software issues causing flight cancellations.

Elliott's push for leadership changes led to an 8% stock price increase, indicating investor optimism.

Southwest Airlines defends its current leadership and strategic direction, expressing confidence in long-term value creation.

Analysts believe necessary changes are achievable at Southwest despite current challenges.

In December 2022, Southwest faced a major meltdown due to outdated crew-scheduling systems, leading to widespread flight cancellations.

The industry is watching to see if Elliott Management's intervention can drive long-term growth and improve stock performance.

Shares rose over 7% after Elliott's stake was revealed, with the firm believing in Southwest's potential for a significant turnaround with new leadership.

Southwest has not yet responded to Elliott Management's recommendations, which were first reported by The Wall Street Journal.

Elliott Management has a history of activist investments in companies like Texas Instruments, Anglo American, and Match Group.