Southwest Airlines has given in to demands from Elliott Investment Management after months of an ongoing battle and agreed to restructure board leadership in a new settlement.

Southwest Airlines Thursday reached an agreement with activist investor Elliot Investment Management to head off a proxy battle.

The carrier’s concessions will avert a proxy fight in exchange for naming six new directors. Notably, Southwest CEO Bob Jordan will keep his job.

Kelly's retirement and Southwest's appointment of six new board members follow mounting pressure from hedge fund Elliot Investment Management.

Southwest Airlines (LUV) reached a settlement with activist investor Elliott Investment Management, ceding six board seats to the firm seeking control over the struggling airline.

Elliott Investment Management and Southwest Airlines are close to reaching a settlement that would avert a proxy battle for control of the airline's board, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Southwest Airlines struck a truce with Elliott Investment Management, giving the activist a significant presence on its board but not the majority control the hedge fund initially sought.The settlement announced Thursday deflects a potentially rancorous proxy fight and ends the acrimonious four-month battle over whether Southwest’s management is capable of pulling the airline out of a funk.

Southwest Airlines Co. has agreed to allow Elliott Investment Management to nominate five directors to its board, as the carrier seeks to address the activist’s push for changes and salvage the job of its chief executive officer.

The settlement deflects a potentially rancorous proxy fight.