Investing.com – Shares of Southwest Airlines (NYSE:) rose more than 6% in U.S. pre-market trading on Monday after the Wall Street Journal reported that Elliott Investment Management had amassed nearly $2 billion in shares in the carrier and plans to escalate by making changes to reverse recent impoverished performance.

The activist investor is now one of Southwest’s largest shareholders, WSJ added, citing people familiar with the matter.

The report comes as Southwest shares are down almost 4% so far in 2024 and are hovering below their levels seen in March 2020, when the Covid-19 pandemic triggered travel restrictions that took a ponderous toll on the entire airline industry.

In addition to the effects of the pandemic, Southwest, which once posted profits for 47 straight years, has been hit by higher costs from up-to-date labor contracts and delivery delays from crisis-ridden planemaker Boeing (NYSE:).

“The potential involvement of activists in Southwest could be a breath of fresh air,” Barclays analysts said in a note to clients after the report was released.

Amber Warrick contributed to this report.