After a tumultuous few months, Southwest Airlines is hoping to close 2024 out on a high note after reporting an unexpected profit for the third quarter on Thursday.
The low-cost carrier also agreed with investor Elliott Management to restructure its board.
David Cush, Sarah Feinberg, Dave Grissen, Gregg Saretsky and Patricia Watson have been appointed independent directors of the board. They are joined by Pierre Breber, former CFO of Chevron, with the additions effective November 1.
As part of the deal, Executive Chairman Gary Kelly will accelerate his retirement, stepping down on November 1. Southwest President and CEO Bob Jordan will retain his role.
The news comes the same day that Southwest reported record third-quarter operating revenues of $6.9 billion and a net income of $67 million in the wake of a dramatic transformation announcement that will feature an added focus on premium and assigned seating.
Meanwhile, the new-look board will appoint a new independent Chairman and be reduced to 13 members as of Southwest's 2025 Annual Shareholder Meeting.
"We are pleased to have reached a collaborative resolution with Elliott, continuing our board refreshment with the addition of new directors who bring complementary skills and experience," said Kelly. "I am confident this board will continue to hold the leadership team accountable for executing its transformational plan and delivering financial performance."
"It has been the honor of my lifetime to work with our people and serve our customers in making Southwest the leader it is today," he added. "I believe Southwest's best days lie ahead under the vision and leadership of Bob Jordan and the oversight of this reconstituted board."
In a statement accompanying the airline's Q3 financial results, Jordan called it an "exciting time" for Southwest and said the carrier is "laser-focused on delivering the robust set of tactical and strategic initiatives included in our plan and returning to the strong financial performance we expect."
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