$LUV Labor-driven pivot could lift Southwest 20–30%

Southwest ($LUV): Elliott’s Labor Edge Powers 20–30% Upside

Shock Factor: Nine insiders, including Elliott Management’s David Hess (up 47.9% with a $199K bet), poured $1.2M into Southwest Airlines ($LUV) from April to May 2025, right before bag fees (starting May 28), premium seats, and a $2.5B buyback. The market’s missing a $1.1B labor unlock.

At the closing bell, June 23, 2025, $LUV was up 1.5% on the day, but this labor-driven pivot could lift it 20–30% to $34–$36 in 12–18 months, with $40 by 2026.

Here’s why it’s a Buy.

Southwest, a 54-year icon, is rapidly transforming under Elliott Management’s 11% stake and five board seats, where their proven labor efficiency strategy (e.g., 20% returns at Hess Corp) hinges on workforce changes.