Southwest Airlines on Thursday unveiled a slew of measures including partnerships with international carriers, vacation packages, and sale-and-leaseback transactions of aircraft to turn around its business and boost profit margins.

The initiatives came as the U.S. carrier faces pressure from an activist investor to shake up its management.

Southwest said the measures would help produce at least a 10% operating margin, 15% return on its invested capital and more than $1 billion in free cash flow by 2027. It also announced a new $2.5 billion share buyback program.

The pioneering low-cost airline once boasted a record 47 consecutive years of profit before the COVID-19 pandemic. But aircraft delivery delays by planemaker Boeing's, excess capacity in the domestic airline industry and post-pandemic travel patterns have all combined to depress earnings.

Its passenger volumes are running below pre-pandemic levels and shares have lost about 40% of their value in the past three years. It has downgraded its outlook at least eight times in the past 20 months despite booming travel demand and analysts expect profit in 2024 to plunge about 83% from a year ago.

As investors and analysts gather in Dallas on Thursday for Southwest's first public investor meeting since 2022, they want a credible strategy and timeline to restore its long-term profitability.

The stakes are high. Activist investor Elliott Investment Management has launched a campaign to oust CEO Bob Jordan and replace two-thirds of Southwest's board of directors, blaming them for the airline's underperformance. Elliott plans to request a special shareholder meeting as soon as next week to force the changes.

While Southwest has offered the hedge fund some concessions, it has repeatedly backed Jordan, calling him the "right leader" to execute a "significant transformation" of its business and improve financial results.