Activist investment firm Elliott Investment Management has escalated its battle with Southwest Airlines by calling for a special meeting to vote on new board members after nominating eight new candidates who could potentially reshape the airline’s strategy, according to a report by Bloomberg.

The hedge fund's request follows months of campaigning for changes that, in its view, Southwest has failed to deliver.

Elliot, which manages around $70bn in assets and holds a 10% stake in Southwest, has formally requested a special meeting on 10 December at which it will propose replacing eight directors allowing it to taking control of the board. Southwest, which has a market capitalisation of $18.45bn, acknowledged the request, and has said it will review the proposal and work "constructively" with Elliott on setting up the meeting.

Elliott has been vocal for months about the need for a shake-up at the top, urging the removal of CEO Bob Jordan, a strategic overhaul, and a refreshed board to address the company’s underperformance. The hedge fund believes the current leadership has not done enough to enhance financial performance or boost the stock price, which has fallen 42% over the past five years, despite an 8% gain in 2024.

In a statement, John Pike, a partner at Elliott, and portfolio manager Bobby Xu said: "Absent a thorough reconstitution of its board, the story of Southwest will remain one of empty promises and unfulfilled potential."

Southwest has dismissed Elliott’s demands as "extreme," and has pointed out that it has plans to reduce its board size to 12 members next year and had also signaled openness to appointing three directors with Elliott’s input. However, it accused Elliott of blocking the company from interviewing its proposed candidates.

Among Elliots proposed new directors are Michael Cawley, former deputy CEO of Ryanair, and David Cush, former CEO of Virgin America.