In response to pressure from activist investor Elliott Investment Management, Southwest Airlines CEO Bob Jordan firmly stated on Wednesday that he has no plans to resign from his position. Jordan's remarks came after Elliott called for leadership and board changes at Southwest, citing the need for fresh perspectives to compete in the modern airline industry.

During a press conference in Washington, Jordan expressed the airline's willingness to listen to Elliott's ideas, stating, "We want to understand what their ideas are, they may have great ideas." However, he emphasized that Southwest would treat Elliott like any other investor and considered their proposed changes alongside the company's strategic plan. "Southwest is a great company," Jordan affirmed. "We have a great plan and will execute."

Elliott Investment Management recently revealed a stake worth approximately $1.9 billion in Southwest Airlines. The firm's involvement prompted speculation about potential amendments to Southwest's open-seating policy and other changes. Responding to these rumors, Jordan hinted at an upcoming investor day in September where the airline plans to unveil a "very broad plan."

In addition to the pressure from Elliott, Southwest Airlines has also been dealing with ongoing issues related to its partnership with Boeing. Jordan disclosed that the airline anticipated receiving 80 airplanes from Boeing this year but now expects to receive only 20. Furthermore, the certification of the smaller MAX 7, which Southwest had planned to use, has been postponed until 2026. Jordan emphasized the importance of a strong Boeing and expressed dissatisfaction with the delays.

On the topic of potential changes to Southwest's business model, Jordan stated that the Elliott plan was "fairly light" on proposed modifications. He revealed that there were rumors of Elliott potentially proposing bag fees, but Southwest's customer data indicated that nearly 50% of its customers choose the airline specifically because of its no-bag fee policy. Jordan emphasized that any changes affecting Southwest's business model must be approached with careful consideration.

Southwest Airlines, known for its values of treating people right and executing operations effectively, is open to evolving its policies in response to customer preferences. Jordan acknowledged that Southwest is currently reviewing potential changes to its open seating policy and considering the introduction of premium seating or extra legroom seats.

Concluding his remarks, Jordan reiterated Southwest's commitment to its values while remaining open to change. "If customer preference tells us we need to evolve, we will evolve. You cannot be stubborn about change," he emphasized.

Southwest Airlines plans to provide more details about its strategic direction and potential changes at the upcoming investor day in September. As the airline faces pressure from activist investors and navigates the challenges with Boeing, all eyes will be on Southwest's plans for the future.