(Reuters) – Southwest Airlines said on Tuesday that Chairman Gary Kelly will retire immediately after the company’s 2025 annual meeting, as the U.S. budget carrier reiterated its support for Chief Executive Officer Bob Jordan.
The airline’s board also intends to appoint four new directors, which could include candidates proposed by Elliott Investment Management in the near term.
Elliott has pushed for a reorganization of the airline’s board and ousting of top executives to improve the company’s performance. Jordan said in June that Southwest had a “great plan” that management would implement, and that he had no intention of resigning.
Southwest Airlines has struggled to remain profitable since the COVID-19 pandemic and has taken steps to help with a turnaround, including adding seats with more legroom and ditching its marquee seating system in favor of assigned seating.
The company has also been hit hard by delays in Boeing’s aircraft deliveries and is suffering from high operating expenses, including high labor and aircraft maintenance costs.
Six current Southwest board directors have also indicated their intention to resign after the airline’s board meeting scheduled for November.
Last month, Elliott nominated 10 director candidates to Southwest’s 15-person board, including former Virgin America CEO David Cush and former Air Canada CEO Robert Milton.
The airline said Tuesday it intends to continue its constructive engagement with Elliott with a view to a collaborative resolution in the near term.
Elliott did not immediately respond to a Reuters request for comment.
(Reporting by Shivansh Tiwary in Bangalore; Editing by Shilpi Majumdar)
