"When you increase fares, that means that fewer people will be able to fly," he said. "As far as I'm concerned, that's not a good outcome for the people, but it may be absolutely necessary under these circumstances."
A board member since the airline's inception (except for a brief period in 1975-76), Kelleher took over as executive chairman in March 1978 after Lamar Muse, who had run the airline since before it took off in 1971, lost a boardroom showdown with King. The airline brought in United Airlines Inc. executive Howard Putnam as president and chief executive.
In September 1981, Putnam abruptly left to take over Braniff International, and the board named Kelleher to be interim president and CEO as well as chairman. In February 1982, the board removed the "interim" label and Kelleher had the jobs on a permanent basis.
He kept all three titles until 2001, when - to reduce his workload and begin a leadership transition - longtime assistant and executive Colleen Barrett moved into the president's job, and general counsel Jim Parker became chief executive.
In 2004, chief financial officer Gary Kelly replaced Parker as CEO.
Last year, Southwest announced that Kelleher and Barrett would step down from the board after the annual meeting, and that Barrett would leave the president's job in July. The board named Kelly chairman, and he will assume the president's title when Barrett leaves.
At yesterday's annual meeting, Kelly said he expects Southwest to remain profitable, as it has in every quarter since early 1991, but not as profitable as in the second, third and fourth quarters of last year.
"I would love for Southwest to grow modestly next year and in 2010, but at this point we're not making any announcements," he added. And as for Kelleher?
"Well, I'll still be here at Southwest Airlines," Kelleher said. "I'll be working a normal, full-time schedule. Basically for the last 40 years, I have worked seven-day weeks, at least 12 hours a day. Hopefully, when we make this transition ... I'll have a few weekends off."
He says he expects to be deployed on assignments like his most recent battle to change the Wright amendment, a federal law that restricted flights from Dallas Love Field, as well as on matters involving the Federal Aviation Administration.
"I think Gary will continue to include me in special projects like that," he said, adding with his trademark laugh: "And I'm looking forward to maybe being able to go to the drugstore on Saturdays. Hah, hah, hah, HAH, HAH!"
The Associated Press contributed to this article.
