Southwest Airlines Ousts CEO Bob Jordan Amid FAA Investigation

Southwest Airlines Fires CEO Bob Jordan Amid Mounting Pressure

Dallas, TX — April 26, 2025 — In a stunning move that sent shockwaves through the aviation industry, Southwest Airlines announced today the immediate termination of CEO Bob Jordan. The decision comes after months of internal turmoil, declining market share, and mounting pressure from activist investors demanding leadership changes at the Dallas-based carrier.

In a press release issued early this morning, Southwest Airlines stated:

> “After careful consideration, the Board of Directors has decided to part ways with Bob Jordan, effective immediately. We are grateful for Bob’s decades of service to Southwest and wish him the best in his future endeavors.”

The airline has appointed Chief Operating Officer (COO) Tammy Romo as interim CEO while a search for a permanent replacement begins.

A Tumultuous Tenure

Bob Jordan, who took over the helm in February 2022, had a long history with Southwest, having joined the company as a programmer in 1988. Over the years, he climbed the ranks, earning a reputation for loyalty and operational expertise. Yet his transition to CEO came during one of the most challenging periods in the airline’s history.

Jordan’s tenure was marked by several high-profile setbacks. The most significant was the December 2022 operational meltdown, when severe winter storms exposed Southwest’s aging scheduling technology, resulting in over 16,000 canceled flights and hundreds of thousands of stranded passengers. The debacle cost the airline nearly $800 million and tarnished its once-sterling reputation for reliability.

Although Jordan pledged sweeping reforms — including investments in technology, staffing, and operations — progress was slow. In late 2023 and throughout 2024, operational improvements failed to materialize at the pace investors and customers demanded.

Moreover, strategic missteps, such as hesitancy to introduce new seating models and premium fare options, allowed competitors like Delta and United to steal market share, especially among business travelers.

Activist Pressure Reaches a Boiling Point

The final blow came earlier this year when Elliott Investment Management, a powerful hedge fund, disclosed an 11% stake in Southwest Airlines and publicly called for Jordan’s removal. In an open letter to shareholders, Elliott accused Southwest leadership of “clinging to outdated strategies” and “failing to adapt to the modern aviation marketplace.”

In response, Jordan unveiled a transformation plan, including tentative steps toward assigned seating, expanded international routes, and premium cabin offerings. But analysts said the proposals were “too little, too late.”

According to sources familiar with the matter, private meetings between the board and Elliott representatives accelerated over the past month. Facing the likelihood of a protracted proxy fight and further erosion of shareholder value, the board concluded that a leadership change was unavoidable.

“The writing was on the wall,” said Ava Morales, a transportation analyst with Avitas Consulting. “Bob Jordan is a good man and a loyal executive, but Southwest needed a bold, visionary leader willing to make painful changes.”

Employee Reaction: Mixed Emotions

Among Southwest’s famously tight-knit workforce — often referred to as the “Southwest family” — the news of Jordan’s firing elicited a mixture of sadness, relief, and cautious optimism.

In a memo sent to employees, Jordan wrote:

> “It has been the honor of my lifetime to serve Southwest Airlines. I leave knowing that our greatest strength remains our People — the heart and soul of this company. I will always be Southwest’s biggest fan.”

Some employees expressed concern that new leadership could dilute the company’s unique corporate culture, long built on humor, hospitality, and employee empowerment.

“Bob understood the Southwest spirit,” said Linda Garza, a 20-year flight attendant. “I just hope whoever comes next doesn’t turn us into another cold, corporate airline.”

Yet others acknowledged that fresh leadership might be necessary to secure the company’s future.

“We can’t survive on goodwill alone,” said Darius Nguyen, a Dallas-based pilot. “We need real innovation — and fast.”

A Critical Crossroads

Southwest now faces a critical inflection point. Founded in 1967 by Herb Kelleher, the airline revolutionized domestic air travel with its low-cost model, free checked bags, and no-frills service. However, the playbook that once made Southwest an industry darling now seems dated amid changing traveler expectations and fierce competition.

The airline’s financial performance has suffered accordingly. In the latest earnings report, Southwest posted a net loss of $152 million for the first quarter of 2025, citing weaker-than-expected demand, rising labor costs, and sluggish adoption of new services.

Adding to the complexity, the airline must also navigate labor negotiations with pilots and flight attendants, who are seeking significant pay increases following similar wins at rival airlines.

Interim CEO Tammy Romo, a 30-year Southwest veteran and former CFO, faces an uphill battle to stabilize operations and rebuild investor confidence while preserving the company’s treasured culture.

“Our mission remains the same: to connect People to what’s important in their lives through friendly, reliable, and low-cost air travel,” Romo said in a brief statement. “I am committed to leading Southwest through this transition with focus, transparency, and urgency.”

What’s Next?

Industry insiders speculate that Southwest’s board will look outside the company for its next permanent CEO — a rarity for an airline known for promoting from within. Several names are reportedly under consideration, including:

Scott Kirby, CEO of United Airlines (unlikely but mentioned by analysts as an aspirational target)

Andrew Watterson, Southwest’s current Chief Commercial Officer

Christina Foerster, former COO of Lufthansa

Joanna Geraghty, CEO of JetBlue

Whoever takes the job will face enormous pressure to reimagine Southwest’s future without alienating its loyal workforce and customer base.

“This is a pivotal moment,” said Morales. “Southwest has to decide what it wants to be for the next generation. The old Southwest magic isn’t enough anymore.”

For now, the company’s employees, customers, and shareholders are holding their breath — hopeful that a new chapter can revive the airline’s fortunes before it’s too late.