Southwest Airlines and Elliott Management Reach Settlement

Southwest Airlines has reached a settlement with activist investor Elliott Investment Management, ending a contentious months-long battle for board control. As part of the agreement, Gary Kelly, the longtime Executive Chairman, will retire earlier than planned, and six new independent directors, including former Chevron CFO Pierre Breber and former Virgin America CEO David Cush, will join the board. Elliott agreed to provisions such as voting and confidentiality, withdrawing its push for a special shareholder meeting. The deal allows CEO Bob Jordan to retain his position and comes as Southwest reports a surprise third-quarter profit, despite facing challenges such as elevated costs and Boeing's delivery delays. The new board, reduced to 13 members by 2025, aims to enhance financial performance and customer experience through strategic initiatives.