Southwest Airlines is undergoing significant changes in its leadership structure, prompted by pressure from activist investor Elliott Investment Management, which has acquired a 10% stake in the airline. Executive Chairman Gary Kelly will not seek reelection and plans to retire after the 2025 annual meeting, while six board members will step down in November. Despite Elliott's push to replace CEO Robert Jordan, he will remain in his position as the airline aims to implement a board refresh and governance restructuring, including the formation of a new Finance Committee. Elliott has criticized Southwest's management for a steep decline in stock price and operational issues, including a major flight cancellation crisis in December 2022 that cost the airline over $1 billion. The airline's operational performance has shown improvement, with a cancellation rate lower than industry competitors since the start of 2023. Southwest's stock saw a slight increase following the announcement of these board changes.