#United States #West Palm Beach #Southwest Airlines #Elliott Management #Rakesh Gangwal

Elliott Investment Management's Statement on Southwest Airlines Leadership Change

On July 31, 2025, Elliott Investment Management L.P., a prominent investment management firm, released an official statement regarding the recent governance changes at Southwest Airlines Co. With Partner John Pike and Portfolio Manager Bobby Xu representing the firm, the statement emphasizes gratitude towards Rakesh Gangwal, who has decided to step down from his role as Chair of the airline.

Mr. Gangwal has played an essential role in leading Southwest Airlines during a pivotal phase for the company. His leadership helped navigate through significant transformations, and Elliott acknowledges his contributions that have prepared the airline for the future. The firm expressed appreciation for Mr. Gangwal's commitment as he will remain on the Board of Directors, continuing to influence the company despite stepping back from the Chair position.

Elliott Investment Management has a solid track record of managing assets and influencing corporate governance positively. As of December 31, 2024, Elliott managed approximately $72.7 billion in assets, which encompassed investments from various institutional sources like pension funds, sovereign wealth funds, and high-net-worth individuals. Founded in 1977, it stands as one of the oldest funds under continuous management.

The investment firm remains optimistic about the future trajectory of Southwest Airlines. Elliott believes that the changes in leadership will foster long-term value creation and is keen to maintain constructive engagement with the airline as it executes its strategies moving forward. The firm is committed to being a proactive partner in Southwest's journey, aligning their investment strategies with the company's goals.

Elliott's focus on corporate governance and sustainable growth has proven beneficial for its portfolio companies, and this situation with Southwest Airlines appears to be no different. By praising Mr. Gangwal's leadership while expressing confidence in the company's future, Elliott is poised to support the airline as it navigates subsequent phases of development.

Looking ahead, the involvement of Elliott Investment Management signals a continued interest in ensuring that Southwest Airlines not only remains competitive within a rapidly changing industry but also adheres to best practices in corporate governance and value creation. This alignment will be crucial as the airline seeks to recover from past challenges and fully leverage its robust operational capabilities in the years to come.

In conclusion, Elliott Investment Management's statement serves as a reminder of the critical role that effective leadership plays in steering successful organizations through change. As Southwest Airlines embarks on this new chapter, the partnership with Elliott presents a promising outlook for stakeholders, including passengers, employees, and investors alike. Both parties share a commitment to excellence, which suggests that the airline's future remains bright under the stewardship of a united and collaborative governance framework.