Southwest Airlines Chairman Gary Kelly to retire, board to be overhauled

(Photo by Mario Tama/Getty Images)
BURBANK, CALIFORNIA - JULY 25: A Southwest Airlines plane taxis at Hollywood Burbank Airport on July 25, 2024 in Burbank, California. Southwest Airlines has announced it will discontinue its 50-year policy of open seating, instead opting for assigned seating that will include premium seating in an effort to broaden its appeal. (Photo by Mario Tama/Getty Images) Photo credit (Photo by Mario Tama/Getty Images)

Southwest Airlines announced on Tuesday that Chairman Gary Kelly will retire immediately following the company’s 2025 annual meeting. The U.S. budget carrier also reaffirmed its support for CEO Bob Jordan.

The airline’s board plans to appoint four new directors, potentially including candidates proposed by Elliott Investment Management. Elliott has been advocating for a board overhaul and the removal of top executives to enhance the airline’s performance. In June, Jordan stated that Southwest has a “great plan” in place and that he has no intention of resigning.

Since the COVID-19 pandemic, Southwest Airlines has faced profitability challenges and has implemented several measures to facilitate a turnaround. These include adding seats with more legroom and transitioning from its open seating system to assigned seats.

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Featured Image Photo Credit: (Photo by Mario Tama/Getty Images)