Southwest Airlines’ longtime chief financial officer (CFO) Tammy Romo will retire from the company on 1 April, a move coming as the Dallas-based airline progresses with revamping its business following several years of lagging profits.
The airline’s chief administration officer Linda Rutherford will also step down the same day, Southwest said on 9 January.
The carrier says both executives are retiring and that each made the decision themselves.
“Tammy and Linda are both respected, long-term executives at Southwest who have made their own personal decisions to retire,” Southwest says. “We are thankful for their many contributions, which will continue to shape our future, and wish them well in their retirements.”
Southwest says it has started searching for a successor to Romo, who has been the airline’s CFO since 2012. Romo joined Southwest in 1991, and Rutherford joined in 1992.
The pending departures mark further upheaval among Southwest’s executive ranks.
In October last year, Southwest said it was populating its board with six new directors and that Gary Kelly, Southwest’s former chief executive, would depart his post as board chair earlier than planned, on 1 November.
The executive shifts have come as Southwest implements strategic changes its executives have pitched as means to help recapture the enviable financial results for which Southwest had been known for years.
The low-cost airline’s profits have slipped significantly in the post-Covid-19 environment, with Southwest reporting a $204 million profit in the first nine months of 2024. By comparison, Southwest turned a $2.3 billion profit in 2019.
Competing US ultra-low-cost airlines have also struggled financially in recent years. The sector has been hammered factors including aircraft delivery delays, engine-maintenance problems and too many seats for too few travellers.
Southwest embarked on its restructuring last year amid intense pressure from minority shareholder Elliott Investment Management.
The overhaul plan calls for Southwest this year to begin eliminating open seating in favour of assigned seats, and to implement other policies that will shift it away from the egalitarian-like travel experience for which Southwest was known since its inception.
Notably, Southwest will soon start selling “premium” coach seats, though it says it will continue letting passengers check bags for free. Southwest also plans to launch new codeshare relationships with other airlines.
