Southwest Chairman Gary Kelly to Retire, Under Pressure From Activist Elliott

Southwest Airlines Co. Chairman Gary Kelly plans to retire, bowing to pressure from activist investor Elliott Management Corp., which has been pushing for changes at the carrier.

Kelly, 66, will step down as chairman and as a director on Feb. 28, the company said in a statement Tuesday. He will be replaced as chairman by Robert Jordan, the company’s former chief financial officer.

Elliott, which owns about 4% of Southwest shares, has been critical of the company's performance and has pushed for changes, including the ouster of Kelly. In a letter to the company last year, Elliott said that Southwest had "lost its way" and needed to make changes to improve its financial performance.

Kelly's retirement comes as Southwest faces a number of challenges, including rising costs, competition from low-cost carriers, and labor unrest. The company has also been criticized for its handling of the COVID-19 pandemic, which has led to a sharp decline in air travel.

In a statement, Kelly said that he was "honored to have served Southwest Airlines for more than 50 years." He said that he was "proud of what we have accomplished together" and that he was "confident that Southwest will continue to be a successful company."

Jordan, who will take over as chairman, said that he was "honored to be elected chairman" and that he was "committed to working with the board and management team to continue to build on Southwest's legacy of success."

Elliott, in a statement, said that it was "pleased that Southwest has taken the important step of replacing its chairman." The firm said that it was "confident that this change will lead to improved performance at Southwest."