Southwest Airlines CEO Gary Kelly to step down
Southwest Airlines chief Gary Kelly will step down as CEO early next year.
Kelly, 66, will be succeeded by Bob Jordan, currently Southwest's executive vice president of corporate services.
"Bob and I have worked side by side for more than 30 years," Kelly said in a Wednesday statement announcing the transition.
"He is a gifted and experienced executive and well-prepared to take on this important role," Kelly continued. "Working closely with President Tom Nealon and Chief Operating Officer Mike Van de Ven, we will begin developing transition plans in the coming weeks and months. These three top-notch Leaders make for a powerful team to lead us forward."
Jordan, 60, first joined Southwest in 1988.
Kelly began his career at Southwest as a financial controller in 1986, and was appointed chief financial officer three years later, eventually working his way up to CEO in 2004. Kelly replaced James Parker, who succeeded Herb Kelleher, Southwest's legendary co-founder as CEO in 2001.
Under Kelly, Southwest saw transformation and growth, acquiring former rival AirTran Airways, adding dozens of cities to an increasingly wide and dense network map, and flying internationally for the first time in its 50-year history, which the carrier celebrated last week. Also under Kelly's watch, Southwest began flying to Hawaii in March 2019 — adding a destination he said had become a top request of its frequent flyer members.
In more recent years, Kelly also led the airline through some of the biggest crises in the history of commercial aviation.
The nearly two-year Boeing 737 Max grounding, from early-2019 through late-2020, hit Southwest harder than any other airline.
The carrier, which operates a fleet that consists entirely of various variations of Boeing's 737, had 41 Max aircraft unable to fly during the grounding, out of a fleet of 718 aircraft as of the end of 2020. Southwest is the largest Max customer, and was forced to strike scores of flights from its schedule as it worked to adapt around the unexpectedly lengthy grounding.
Kelly also stewarded the airline through the COVID-19 crisis, helping the airline shore up its liquidity and overall finances, avoid furloughing employees, and position itself to take advantage the current resurgence of travel demand, even as air travel came to a near stand-still across the globe earlier in 2020.
"I am most proud, especially after a pandemic, that we have never had a layoff, a furlough," Kelly said at an employee event celebrating the airline's 50th anniversary in Houston last week. "No other airline can say that."
"I'm grateful that I joined Southwest in 1986 when I had the chance. I'm grateful that I'm still a part of this great cause of leading Southwest Airlines. I'm grateful that the worst is behind us," Kelly added at the event. "And of course I am very grateful for my Southwest family."
When asked what he thinks the airline will look like in the next 50 years — and in the post-pandemic era — Kelly grew nostalgic in comments to TPG (TPG was not aware of the planned retirement announcement).
"I wish I was going to be around to see what it looks like, because it'll be different. But as long as we continue to offer great service at a low price and continue to innovate, we'll be good."
More: Southwest unveils new 'freedom' livery, gives workers 50,000 points for 50th anniversary
Among the challenges in the coming years and decades, which Kelly's successors will manage, he sees a few areas of focus, including air pollution, use of new technologies, and, likely, an eventual move away from the 737 platform as the next generation of aircraft are developed.
"Air travel's important. I would say we'll still be laser-focused on air travel," he said. "I think our DNA is to try and be as productive and efficient as we can. I think we'll be a world leader in air travel."
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.