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 announced a resolution to its discussions with activist investor Elliott Investment Management and reported better-than-expected earnings.

Six new directors will join the Southwest board, including five of Elliot's nominees; chairman and former CEO will step down earlier than scheduled.