Southwest Airlines has informed employees that tough choices lie ahead as it seeks to increase profitability, facing pressure from Elliott Investment Management. Despite rolling out new revenue-generating changes—like assigned seating, premium seats, and red-eye flights—COO Andrew Watterson told staff that additional measures are needed to improve its financial outlook.

jetblue airways
Similar to Southwest, jetBlue has also started to introduce cost-cutting measures to its operations.

While the airline doesn’t plan furloughs, Southwest may cut its presence in some cities, allowing staff transfers instead. Other airlines, such as JetBlue, have similarly reduced routes this year. More details will be shared at Southwest’s upcoming investor day, while leadership changes loom as executive chairman Gary Kelly prepares to step down next year.