Southwest Airlines Executives Purchase 3.7 Million Shares

Southwest Airlines (WN), based at Dallas Love Field, has seen significant insider buying as CEO Robert ‘Bob’ Jordan, Executive Chairman Gary Kelly, and Board Director Rakesh Gangwal acquire over 3.7 million shares, according to recent SEC filings. Gangwal, co-founder of India’s IndiGo Airlines (6E), purchased nearly 3.6 million shares, while Jordan acquired 97,872 shares at USD 29.63 per share through his retirement savings plan. Additionally, Kelly transferred 84,212 shares from a family limited partnership to a family trust and bought 33,921 shares at an average price of USD 29.51.

Despite the substantial value of Gangwal’s acquisition, which exceeds USD 100 million, he still holds less than 1% of Southwest’s stock. The airline has issued nearly 600 million shares overall. Notably, activist investor Elliott Management holds approximately 11% of Southwest, valued at around USD 1.9 billion.

In July, Southwest appointed Gangwal to the board amid pressure from Elliott to revamp the airline’s management, including a potential ousting of CEO Bob Jordan. Elliott Management views Southwest as having the “most compelling airline turnaround opportunity in the last two decades.”

In September, Kelly announced his impending retirement, alongside six other directors from the 15-member board. The airline is implementing changes to its business model, including assigned seating, extra legroom options, updates to the boarding process, red-eye flights, and partnerships with international carriers—most notably Icelandair, its first partner.

Gangwal expressed concerns about further changes at the executive level, stating that additional shifts in the board structure and top leadership could negatively impact shareholders. “I believe changing the board structure and top leadership beyond what has been already announced would be counterproductive and not in the best interest of shareholders,” he told Reuters. This insider buying reflects confidence in the airline’s future amid ongoing strategic changes.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com