They say time flies when you’re having fun, but it speeds up even more when activist investors get involved. Since hedge fund Elliott Management took out an 11% stake in Southwest ($LUV) in June, America’s largest airline has been racing to revamp its business model, cut costs, and overhaul its leadership — an effort to prevent a hostile takeover of the 53-year-old airline. On Thursday, they revealed plans to align more closely with competitors like Delta ($DAL), United ($UAL), and American ($AAL).

• Southwest announced it will introduce seat assignments and premium seating with extra legroom by the first half of 2026, giving loyalty members priority access to the new preferred seating.
• The airline will also start offering red-eye flights, flexible vacation packages, and a partnership with Icelandair as part of its renewal effort.

Landing the jet: While Southwest shared these updates with customers via an email blast, they had a different message for investors: a $2.5B share buyback and an improved earnings outlook for the third quarter. Investors responded positively, pushingLUV

stock up by as much as 10% during the day. These gains follow plans to cut hiring and operations at underperforming airports. However, after a rapid profit decline last quarter, Elliott is calling for a vote to oust CEO Bob Jordan and replace the board, with a special meeting potentially happening as soon as Q4.