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STORY: Southwest Airlines announced profit-boosting plans on Thursday, including partnerships and vacation packages.

However, activist investor and critic Elliott Management dismissed the plan.

At Southwest’s public investor meeting on Thursday, CEO Bob Jordan said the airline wants to avoid a fight with Elliott, but the hedge fund isn’t interested in cooperating.

Jordan called the new changes the carrier's 'most transformational plan.'

Other moves include assigned seats, extra-legroom options, overnight flights, and keeping the 'bags fly free' policy.

Southwest expects these measures to boost margins and add $4 billion in earnings by 2027.

But Elliott said it was just empty promises, and called for 'credible leadership,' accusing Jordan of playing with investors’ money.

The fund renewed its call to remove him, and is seeking a shareholder meeting to agree leadership changes.

In response, the airline has offered concessions, but refused to ditch Jordan.

It has struggled to boost revenues in line with soaring costs, leaving its profit margins all-but wiped out.

Passenger volumes remain below pre-pandemic levels, and its shares have dropped about 40% over the past three years.

Southwest has downgraded its outlook at least eight times in the last 20 months, despite strong travel demand.

Jordan acknowledged the need for a response, saying, 'our model is not broken, but it needs ongoing improvements.'

On Thursday, Southwest increased its third-quarter revenue forecast and announced a $2.5 billion share buyback plan.