Southwest Settles Proxy Battle with Board Changes

Southwest Airlines has settled a proxy battle with Elliott Investment Management by agreeing to revamp its board, adding five Elliott-backed candidates and a former Chevron executive, despite not ceding majority control. The airline reported a third-quarter profit of $67 million, a significant drop from the previous year, but it exceeded Wall Street expectations due to improved pricing and demand, including rebookings after a summer cyber outage. Southwest's revenue for the quarter rose to $6.87 billion, and adjusted earnings per share were 15 cents, surpassing analyst forecasts. Meanwhile, American Airlines reported a third-quarter loss of $149 million, but raised its full-year earnings guidance, indicating efforts to win back corporate clients. American's sales increased to $13.65 billion, aligning with Wall Street's expectations. Both airlines are focusing on cost management and strategic initiatives to improve financial performance amid industry challenges.