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Southwest Airlines<\/a> will revamp its board and its chairman will retire next year, but it intends to keep CEO Robert Jordan after a meeting with hedge fund\u00a0Elliott Investment Management<\/a>, which has sought a leadership shakeup at the airline including Jordan\u2019s ouster.<\/p>\n Southwest said<\/a> Tuesday that six directors will leave the board in November and it plans to appoint four new ones, who could include candidates put forward by Elliott.<\/p>\n Elliott, the fund led by billionaire investor Paul Singer<\/a>, has built a 10% stake in recent weeks and advocated changes it says will improve Southwest\u2019s financial performance and stock price. The two sides met Monday.<\/p>\n Elliott blames Southwest\u2019s management for the airline\u2019s stock price dropping by more than half over three years. The hedge fund has wanted to\u00a0replace Jordan<\/a>\u00a0, who has been CEO since early 2022, and Chairman\u00a0Gary Kelly<\/a>, the airline\u2019s previous chief executive. Southwest said Tuesday that Kelly has agreed to retire after the company\u2019s annual meeting next year.<\/p>\n Elliott argues that Southwest leaders haven\u2019t adapted to changes in customers\u2019 preferences and failed to modernize Southwest\u2019s technology, contributing to massive flight cancellations in December 2022. That breakdown cost the airline more than $1 billion.<\/p>\n Shares of Southwest Airlines Co. rose slightly before the opening bell Tuesday.<\/p>\n<\/div>\n\nStay on top of the tech world with these Fortune newsletters:<\/strong>
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