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Southwest (LUV) Picks Veteran Jordan to Succeed Kelly as CEO

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Southwest Airlines Co. (LUV - Free Report) picked company veteran Robert Jordan to succeed Gary Kelly as its new chief executive officer, once the latter steps down in February 2022. Kelly, however, plans to serve as the company’s executive chairman through 2026. This top-management leadership transition comes at a time when airline companies are preparing to recover from the pandemic-led woes.

Kelly, a 35-year Southwest veteran, has been serving as the company’s chief executive officer since 2004. He joined the company as controller and has served as chief financial officer and executive vice president prior to being promoted as chief executive. It was during his tenure that Southwest launched international operations for the first time. Kelly has led the company in major initiatives, such as the acquisition of AirTran Airways and the introduction of the Boeing 737 MAX 8 into the airline's fleet.

Jordan joined Southwest in 1988 and currently serves as the executive vice president, corporate services. He has played a crucial role in several transformational measures taken by the company. He was involved in the company’s efforts to reduce labor costs by offering employees voluntary leaves and buyout programs last year amid the pandemic-led suppressed air-travel demand.
 
It remains to be seen how Jordan leads Southwest’s recovery from the pandemic-induced disruptions.

Zacks Rank & Key Picks

Southwest carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Covenant Logistics Group (CVLG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and Covenant Logistics have rallied more than 22%, 71% and 60% in a year’s time, respectively.

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