Southwest Airlines Restructures Board After Settlement

Southwest Airlines has reached a settlement with Elliott Investment Management, leading to a significant restructuring of its board. Chairman Gary Kelly and six other directors will retire on November 1, making way for five Elliott-backed candidates and former Chevron CFO Pierre Breber. This board overhaul aims to address disappointing financial results, as Southwest reported a 65% drop in profits for the third quarter, despite a slight increase in revenue. CEO Bob Jordan remains in his position, with Elliott focusing on enhancing board expertise to improve the company's performance and stock value. The airline plans further strategic changes, including a reduction in flight schedules and a shift to more premium seating options, to boost revenue. The settlement helps avoid a proxy fight that Elliott had threatened to initiate.