Southwest Airlines Co (NYSE:LUV) shares are bouncing around in early trading Monday after Elliott Investment Management called for a special meeting of shareholders.

What Happened: Activist Elliott Investment Management has asked for a special meeting of Southwest shareholders and nominated eight directors to the airline's board.

The activist investor is pushing for changes at Southwest as the company has struggled with profitability in the wake of the COVID-19 pandemic.

Elliott disclosed a roughly $2 billion stake in Southwest in June and has since made several attempts to persuade Southwest to implement what it sees as "necessary" governance changes. The activist said it currently maintains an 11% stake in the airline.

"We are taking this step today because the need for improved oversight at Southwest has never been more urgent. Following Elliott's public push for changes, Southwest has responded with a series of long-overdue strategic and corporate-governance initiatives, promising that better performance will follow," the activist investor said.

"However, Southwest's shareholders have heard these sorts of promises before, and what they need today, at the outset of this attempted turnaround, is an experienced, highly qualified Board to oversee the changes and ensure successful execution. Southwest's shareholders cannot afford to see – yet again – today's new initiatives turn into tomorrow's broken promises."

Last month, Southwest introduced its "Southwest. Even Better" transformational plan at its Investor Day. The three-year plan is focused on transforming the customer experience to drive revenue growth and improve profitability.

Elliott Management responded to the announcement, noting that the turnaround won't work without new management.

"Today's Investor Day will have a familiar ring for many shareholders: Another promise of a better tomorrow from the same people who have created the problems we face today. Without credible leadership that can execute, this plan – filled with long-dated promises of better performance – risks becoming the latest in Southwest's long series of failed improvement initiatives," the activist said in September.

LUV Price Action: Southwest Airline shares got a lift in early trading Monday, moving up to around $31 before pulling back. The stock was down 1.14% at $30.27 at the time of publication, according to Benzinga Pro.

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