Longtime Southwest CEO will step down next year – KIRO 7 News Seattle

DALLAS – (AP) – Southwest Airlines said Wednesday that long-time CEO Gary Kelly will step down in February and be replaced by another veteran at the country’s fourth largest airline.

The new CEO will be Robert Jordan, Executive Vice President of Corporate Services. Southwest said Kelly, 66, plans to remain executive chairman at least until 2026.

Speculation about Kelly’s successor had sometimes centered on Tom Nealon, who was named president in January 2017, and Mike Van de Ven, the chief operating officer.

Jordan, 60, was a programmer and financial analyst for computer manufacturer Hewlett-Packard before joining Southwest in 1988. He had jobs in accounting and technology oversight. However, in recent years he has taken on a more strategic role at Southwest.

Jordan ran AirTran Airways after Southwest bought the rival low-cost airline in 2011 and led projects to build the airline’s website and frequent flyer program, a key source of income.

During the pandemic, when air traffic plummeted to levels not reached during the jet era, Jordan played a key role in designing programs to encourage employees to take voluntary vacations or take-overs when Southwest took immediate measures to cut costs .

The Dallas airline has had few CEOs in its 50-year history. It was run for many years by Herb Kelleher, a brightly colored, chain-smoking lawyer who helped found the airline 50 years ago against fierce opposition from existing airlines. Kelleher resigned in March 2001, but his successor Jim Parker had a strained relationship with the labor groups of the heavily unionized airline and was replaced by Kelly in 2004.

Kelly, who grew up in Texas, graduated from the University of Texas with a degree in accounting, joined Southwest as a controller and held several other finance positions including chief financial officer.

As CEO, Kelly led the $ 1.4 billion acquisition of AirTran Airways, which eliminated a rival low-cost airline. With Kelleher and Kelly both involved, Southwest received Congressional approval to lift restrictions on its Dallas operations.

Kelly extended the airline’s streak of profitable years to 47 until it ended last year when the pandemic devastated air travel. Kelly likes to quote the airline’s claim that it has never laid off an employee in its 50-year history.

Southwest Airlines Co. shares fell 1% on Wednesday, with almost all major airlines pulling back in early trading.

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