Southwest Airlines CEO Bob Jordan Firm on Staying Amid Suggestions from Elliott Investment Management

Southwest Airlines CEO Bob Jordan has affirmed he has no intentions of resigning amidst pressures from activist investor Elliott Investment Management, which recently disclosed a $1.9 billion stake in the airline. Addressing reporters in Washington, Jordan emphasized the airline’s openness to constructive dialogue with Elliott, stating, “We want to understand what their ideas are, they may have great ideas. At the end of the day, we are going to treat Elliott like any other investor. We’ll sit down and listen to them…. Southwest is a great company. We have a great plan and will execute.”

Elliotti’s call for leadership and board changes comes as it seeks to infuse new perspectives to enhance competitiveness in the evolving aviation landscape. Jordan, a 36-year veteran at Southwest, responded robustly to these suggestions, underscoring his commitment to the airline’s strategic direction and operational excellence.

Further complicating the scenario, Jordan highlighted ongoing challenges with Boeing, noting that instead of the anticipated 80 airplanes, Southwest now expects only 20 this year. He also projected delays in the integration of the smaller MAX 7 aircraft into the fleet, now postponed until 2026. “We support Boeing doing the work to get better… Because a better Boeing is good for us for decades. We need Boeing to be very solid,” Jordan remarked, expressing dissatisfaction with the current delays.

Jordan’s commentary also touched on potential strategic shifts at Southwest, such as reconsidering its open-seating policy and possibly introducing premium seating options, indicating flexibility to evolving customer preferences while maintaining the core values of the airline. He assured that while open to changes, the fundamental aspects of Southwest’s business model and customer-centric policies, like the no-bag fee policy which draws nearly 50% of its customers, would not be compromised.

Looking ahead, Southwest plans to unveil a comprehensive plan at an investor day scheduled for September, which will likely address these considerations and outline the future trajectory for the airline under Jordan’s continued leadership.