In an “unprecedented” move, Southwest is retiring its chairman and making room on its board for candidates of its activist investor’s choosing—thus likely avoiding an expensive proxy battle.

Southwest Airlines is changing its board of directors as the Dallas-based airline faces pressure from an activist investor and the need to be profitable for its shareholders. On Monday, Southwest announced its executive chairman Gary Kelly would not run for reelection in 2025 and six board members would resign after a quarterly board meeting in November.

DALLAS – Southwest Airlines will revamp its board of directors, and longtime Chairman Gary Kelly will retire next year, the company announced Tuesday morning.