Southwest Airlines raises summer revenue forecast, authorizes $2.5 billion in share buybacks.
Southwest said the measures would help produce at least a 10% operating margin, 15% return on its invested capital and more than $1 billion in free cash flow by 2027. It also announced a new $2.5 billion share buyback program.
Its passenger volumes are running below pre-pandemic levels and shares have lost about 40% of their value in the past three years. It has downgraded its outlook at least eight times in the past 20 months despite booming travel demand and analysts expect profit in 2024 to plunge about 83% from a year ago.

Activist investor Elliott Investment Management has launched a campaign to oust CEO Bob Jordan and replace two-thirds of Southwest’s board of directors, blaming them for the airline’s underperformance. Elliott plans to request a special shareholder meeting as soon as next week to force the changes.

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