Southwest Airlines Chairman Gary Kelly will retire after the company's 2025 annual meeting, following pressure from activist investor Elliott Investment Management. Elliott, which holds an 11% stake in the airline, has criticized Southwest's management for poor financial performance and urged for significant changes, including the departure of CEO Bob Jordan and several board members. Despite Kelly's retirement, Jordan will remain as CEO with the board's support. Southwest plans to appoint four new independent directors, potentially including Elliott's candidates, and will overhaul its business model by introducing assigned seating. The airline aims to address high operational costs and modernize to improve profitability post-pandemic.