Dive Brief:

• Southwest Airlines tapped Tom Doxey, an alum of Breeze Airways, to serve as its next finance chief, succeeding CFO Tammy Romo, the airline said in a securities filing and press release Monday. Doxey will assume the role on March 10, at which point Romo will step down from the position she has held since September 2012, the company said.
• The appointment comes approximately a month after the Dallas, Texas-based airline announced Romo, a three-decade veteran of the airline, would be retiring from her role, in a January filing with the Securities and Exchange Commission.
• Doxey will take the top financial seat as the airline looks to execute a multi-year turnaround plan aimed at improving operational efficiency announced in September. As part of the initiative, the airline is aiming to achieve a run-rate of $500 million in cost savings in 2027.

Dive Insight:

Doxey, 45, most recently served as a senior advisor for Breeze Airways, according to his LinkedIn profile. His previous roles in the airline industry include five years at United Airlines, where he served in positions including SVP, technical operations and CFO, operations, as well as roles at airlines Allegiant and US Airways, now American Airlines.  

As CFO, Doxey will receive an annual base salary of $575,000 and will be eligible for a short-term incentive compensation opportunity of $776,250, prorated for 2025, according to the filing. He will also receive restricted stock units with a grant date value of $1.2 million, as well as performance-based RSUs, also with a grant date value of $1.2 million, per the filing.

Doxey will assume the CFO seat as Southwest looks to bolster flagging profitability — the traditionally budget-friendly airline has lost ground to competitors in recent years as fliers following the COVID-19 pandemic became more willing to spend on airline amenities such as seat choice. As part of its turnaround plan, Southwest announced it would be offering an assigned seating model, among other shifts aimed at improving its customer experience.

The airline is also “urgently working” towards its $500 million cost savings goal, CFO Romo said during the company’s Q4 and full-year 2024 earnings call in late January. The airline is looking to achieve those savings through actions including reducing hiring and “capitalizing on supply chain opportunities,” according to its September plan. As it moves forward with its goal, Southwest is also taking a “hard look” at its cost structure, CEO, President and Vice Chair Bob Jordan said during the call.

“Our cost performance, including in the first quarter, is not where we want it to be,” Jordan said. “We are taking immediate actions to accelerate as much of the $500 million of targeted cost savings into 2025 as possible, and we will report on our progress as we go.”

The airline reported record revenue both for its Q4 and full-year, with operating revenue reaching $6.9 billion for the quarter ended Dec. 31 and $27.5 billion for the year, according to its earnings report.

Southwest continues to face inflationary pressures in 2025. The airline has also reduced its expectations on the future capacity of its fleet. The airline views its “fleet monetization strategy as incremental to the base business improvement,” Romo said during the earnings call, but is facing capacity challenges from airline manufacturers, primarily Boeing.

Southwest reported conservative delivery estimate of 38 aircraft from Boeing in 2025, which falls short of the contractual number of 136 aircraft for the year, executives said. That follows after Boeing failed to deliver an expected 79 aircraft to Southwest in 2024, delivering 22 instead, Romo said.

Southwest declined to comment beyond the details included in its press release.