Southwest Air cuts revenue outlook as CEO fends off activist

Southwest Airlines Co. reduced its estimate for unit revenue in the second quarter, a sign of ongoing challenges at the carrier as it fends off an activist push for a management overhaul. The company expects revenue per available seat mile to fall as much as 4.5% in the current quarter, Southwest said Wednesday in a regulatory filing. It had previously expected a decline of no more than 3.5%. Southwest attributed the pared outlook to “complexities in adapting its revenue management to current booking patterns,” according to the filing. The reduction is an unwelcome development for Southwest CEO Bob Jordan as he faces demands for new leadership by some investors including activist Elliott Investment Management, which disclosed a $1.9b stake in Southwest earlier this month. Elliott issued a statement Wednesday blasting Southwest for the cut, calling it the eighth guidance reduction in the past 18 months. The investor reiterated its demand for new leadership after the current team has “proven unable to adapt to the modern airline industry.” Southwest representatives didn’t immediately respond to a request for comment. <br/>