02-27-2014
12:40 PM
Hi Janet ... I'm so glad to learn that our wonderful Flight Crew kick started your vacation with a fun and entertaining flight! I will certainly share your kudos with their Leaders so that they know how much you enjoyed your time with our awesome Employees. Happy travels and we can't wait to see you again soon!
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At the end of 2013 we launched Mobile Boarding Pass for single passengers traveling on nonstop and direct Southwest Airlines-operated flights originating out of Austin, TX (AUS) as part of a pilot program. We are excited to announce that we are moving forward and rolling this program out to two more cities, Dallas (DAL—Love Field) and Houston (HOU—Hobby) beginning today!
What this means for YOU?
Update your Southwest Airlines App and you can check-in, move through security, and board your flight using your mobile device when traveling from or connecting through AUS, DAL or HOU. For more information, please visit www.southwest.com/mobile.
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You may have seen coverage in the news this week regarding Arizona’s Senate Bill 1062, which would allow business owners to refuse service for religious reasons. The bill, which cleared the Arizona legislature last week, is now on the desk of Governor Jan Brewer, who can veto or accept it. Many companies, including Southwest, American Airlines, Apple, and AT&T are joining the opposition to the bill and are urging Governor Brewer to veto it.
To read Southwest’s letter to the Governor, please click here.
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02-25-2014
05:22 PM
02-25-2014
05:22 PM
Hi Matt! I have forwarded your question to our Community Relations Team and they will reach out to you. Thanks for reading!
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It's the LUV month and at the LUV airline, our dear friend Cupid has shot more than a few arrows into the hearts of our Employees. Here’s a look at a few of the more than 1,400 amazing LUV Couples (Southwest Employees who are married to another Southwest Employee) who have dedicated themselves not only to Southwest but also to each other.
Craig & Amy Henrichsen
Years Married: Two years
Children: Craig has two daughters, who are both married: Stephanie (27) and Emily (25). Amy has one daughter in college—McKenzie (20).
When did you meet: We met in 2001 during Pilot interviews. I was a Recruiter and Craig was interviewing new Pilots.
Your first thought when you saw him: Oh great, another Pilot who probably wants to train me on how to interview Pilots.
Your first thought when you saw her: Oh great, another new Recruiter we have to train on how to interview Pilots.
The best part of working with your spouse: This might sound a little cheesy, but we both came up with it immediately so it was our gut reaction. The best is what we are able to learn from each other about different aspects of the business. One of us gets insight into the Operations side, and the other learns about the Headquarters perspective. We believe this makes us better Employees for the Company we LUV!
Thomas & Brooke Johnson
Years Married: Ten years on Feb 14, 2014!
Children: We have eight-year-old twins: Kailey and Kole. In fact, we spent our second wedding anniversary in the hospital waiting for them to come. We also have two furry babies—mini schnauzers, Yogi and Guinness.
When did you meet: October 1998 at Gate 15 in Portland, Ore.
Your first thought when you saw him: Slacker! He was wearing sweat pants & headphones at work. Who does that?!
Your first thought when you saw her: She was so bubbly and happy spirited.
The best part of working with your spouse: Knowing that we understand the other person’s job and can support one another. We also have so much FUN together.
Courtney & Julie McGrath
Years married: Two years, but we’ve been together for almost 12. That counts, right?
Children: We have two four-legged kids—Lucy and Linus—who rescued us.
When did you meet: We met on a blind date in March 2002 in Austin. We were set up by a Coworker.
Your first thought when you saw him: The first time I saw him was in a photo that he sent to me. Of all the pictures he could have used, he sent me one with him standing with the band members of Creed. I was stumped on which guy he was. I had to call a Coworker who was an avid fan of the band to see if she could pick him out. Finally after she did I thought, ‘Hmm, he's pretty dang good lookin’!’
Your first thought when you saw her: I also first saw her in a picture. From what I could tell she looked cute, but I remember thinking ‘Why is this picture taken from so far away and why is she hiding behind those ski goggles?’ I later found out that was all done on purpose until she evaluated my picture.
The best part of working with your spouse: Although it's rare, it's nice to have a coffee or lunch together, not to mention catching a ride to work together every now and then. It's also great that both of us are familiar enough with the operation to take full advantage of our route network when traveling.
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At Southwest, we are known for referring to our Coworkers as Family and for treating each other with the same care and respect you would show your family members at home. It’s part of what makes Southwest a great place to work and an airline our Customers love to fly. For some Southwest Employees, Family is not just a figure of speech. It may surprise you to learn that Southwest is not afraid to hire someone’s brother, sister, aunt, uncle —it’s yet another unique aspect of our airline. Here are a few families who have made working for Southwest a family tradition.
The Kim and Fernando Ramirez Family
Ground Ops Senior Manager of Administration Kim Ramirez joined Southwest in 1986, followed by her husband, Dallas Provisioning Agent Fernando in 1989. After growing up as Southwest kids, Kim and Fernando’s three children also became part of the Southwest Family. Marketing Assistant Manager Kristina Snyder began her Southwest career in 2006, followed by her brothers, Flight Operations Scheduling Analyst Jeremy in 2010 and Revenue Management Market Strategy Analyst Robbie in 2013. Later in 2013, their cousin, Caroline Snavely, joined Southwest as a Cargo Marketing Communication Specialist.
Jeremy, Caroline, Kristina, Fernando, Kim, and Robert
“Most people are surprised when they find out we all work here—but why wouldn’t they want to work here? It’s a great Company! Some people probably think we shouldn’t put all of our eggs in one basket, but we feel fortunate to all have great jobs. We feel very secure.”—Kim
“At one point in our careers, my wife and I both worked at the Dallas Station. I worked on the Ramp and she was in Customer Service, but we didn’t see each other very much. Many times we were working opposite shifts. After working there for several years, we were at the wedding of one of our Coworkers. One of my friends came up to me and said, ‘I didn’t know you were dating that girl.’ I said ‘Dating? That’s my wife!’”—Fernando
“I’ve always wanted to work at Southwest. I feel like I pretty much grew up at Dallas Love Field because we were there so often! When we were young, my parents worked opposite schedules so that one of them could always be home with us. We’d go up to the airport so they could ‘trade off,’ as one of them got off their shift to take us home and the other was beginning their shift. I have great memories of Jeremy and me playing and running around the older section of Love Field. It’s kind of interesting that my mom and I started almost exactly 20 years apart (she started in August 1986 and I started in September 2006), AND our Employee Numbers are almost the same. Very strange!”— Kristina
“As a kid, I thought it was normal for everybody to like their jobs and Company the way my parents did. When I got older, I learned that was not the case. I thought it was really cool that my parents always came home with funny work stories and had developed so many great friendships over the years with Coworkers. After working for companies that didn’t have the culture, reputation, benefits, and bright future like Southwest, I finally realized why my parents chose the career path they did, and I wanted the same.”—Jeremy
“My first day as an Intern, I had no idea that my aunt and I were going to be working in the same department. So, when I met my Manager after orientation and Kim was with her I was so surprised! Come to find out that Kim’s office is about 20 feet from my cube. Now, I get to see her all the time!”—Caroline
“While I’m still new and don’t have a ton of funny stories, I do have one about Caroline. One day I was walking across the street to the DART station just as Caroline was driving by with her Coworker. Before she realized it was me, she had told her Coworker that I was ‘hot’ out loud.”—Robert
“Just for the record, Robbie’s story is not completely true. The real reason I didn’t recognize him that day was because I had forgotten my glasses.”—Caroline
The Latronica Family
Chicago-Midway GSE Technician/Ground Equipment Mechanic Gary Latronica started at Southwest in 2005, and his son Nick joined him in 2007 as a Chicago-Midway Ramp Agent. Now a Ramp Supervisor, Nick still enjoys working alongside his dad.
Gary and Nick Latronica
“Nick and I used to work quite a few years together at my previous job in a family business. I would bring him with me to work when he was only about five years old, so he grew up learning good work ethics. Now my current shift position as a GSE Tech at Chicago has me flying out to other cities in the Chicago Region every day to repair and/or maintain all of our equipment in those cities, and Nick works on the Chicago ramp. There are times when we contact each other to work together to resolve issues that he or I may have regarding flights, shipments, one of us needing help, etc. It's also fun talking to other Southwest Employees who may not know that we are related, and then are happily surprised to find out that we are. However, I think we probably see each other more often when volunteering for different Company-related events such as WWII veteran Honor Flights that are organized at Midway.”—Gary
“I graduated from Illinois State University in December 2005 with a degree in Criminal Justice, and began to pursue a career as a Chicago Police Officer. I passed all the tests to become an officer and was put on their waiting list. While I was waiting, my dad told me that Southwest was hiring Ramp Agents at Midway, and that I should apply, because the wait for the CPD position might take years. I applied, was hired as a Ramp Agent, and soon became a Ramp Supervisor. After a while, they called me for the CPD position, but I passed on it because I was enjoying working at Southwest so much!”—Nick
The Pyles/O’Teter Family
Ben Pyles joined the Southwest Family in 2001 as a Ramp Agent and eventually moved to HDQ as a Ground Ops Analyst. Executive Assistant Chelsea O’Teter started in Customer Relations in 2009, and her sister Mallory joined as a Ground Operations Culture Ambassador in 2010. Ben and Mallory met when she helped choreograph the Ground Ops Halloween skit in 2012, as he was the funny guy who danced like a maniac and made her me laugh. They married a year later.
Chelsea, Mallory, and Ben
“From the time I was a senior in high school my plan was to work at Walt Disney World, although I had a few interesting Southwest-related interactions during college. During my senior year of college I toured Southwest Headquarters with one of my business classes. At that time I already had a job lined up with Disney after graduation, but I told someone that if I ever didn’t work at Disney that I think I’d like to work at Southwest. Two-and-a-half years later I was ready to move back to Texas and tried to find a job in the jobless market of 2009, and I applied for a Customer Relations position that was posted for less than a day. I didn’t hear anything for a while and really forgot I had even applied; however, I was so certain that this was the right time to move, even without having a job, that I gave a month notice with Disney and made plans to move. The week that I moved I got an interview for the CR position on Tuesday, drove from Orlando to Dallas on Friday, and was offered the position on Monday!”—Chelsea
“Since we are no longer roommates, it's so nice to be able to catch up with Chelsea at work. Sometimes I even sit in her lap and have 'sister moments.' But shhh, don't tell anyone how much we like each other. Working with Ben is super FUN too, because we have a great time getting involved with the Southwest Culture together, and also because no matter how hard the day might have been, as we walk to our car at the end of it, we get to hold hands—and that's just nice.”—Mallory
“I love working with Mallory and Chelsea! It’s great to be able to pop right over and kiss your wife on the cheek and bug your sister-in-law.”—Ben
Dee Sleight & Dory Smith
Dee started at Southwest as a Fort Lauderdale Customer Service Agent in 2010, and immediately fell in LUV with the Company. She was so happy, that she kept talking to her sister Dory about moving to South Florida and joining the Southwest Family too. Dory did just that and became a Fort Lauderdale Customer Service Agent in 2012.
“It is so nice to work together! We are able to help each other out: I babysit Dory’s dog when I’m at work, and Dory will pick up some of my shifts so that I can spend more time with my family.” –Dee
“It is funny to us that people call us each other’s names, AND we respond! Also we compete against each other for Customer Commendations—our goal is to be in the top 10 together. Dee's been winning so far, but the competition continues!” –Dory
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02-10-2014
03:45 PM
02-10-2014
03:45 PM
Glad we could take you back to such a fun memory Karen. It looks like it was a hoot!
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02-10-2014
11:39 AM
02-10-2014
11:39 AM
Hi Greg ... I remember the first time I flew in and out of MDW in the late 1990s. I was taken aback by the drab, cold cinder block walls, lack of windows, and that you had to climb stairs to get get to the jet bridge sine the terminal was ground level. The remodeled MDW is so nice--you should check it out!
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02-10-2014
11:31 AM
02-10-2014
11:31 AM
Hi Katie ... as a former marketing intern for a minor league hockey team, I would highly recommend that you go to a game sometime. It is so much fun!
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At Southwest, we are known for our unique Culture and Fun-LUVing Employees. And believe me when I say that they are as interesting off the clock as they are when they are working! In fact, we often spotlight Employees and their hobbies in our Employee magazine, LUVLines. Here's one just in time for tonight's opening ceremony in Sochi.
Casey Goodwin
Tech Ops Maintenance Inspector
As an Arkansan, I didn’t learn about hockey until I enlisted in the Air Force. There we a bunch of guys from “up north” who loved the sport and it eventually rubbed off on me. As my skills improved, I graduated from street hockey to ice hockey in my early 30s. Some of my Fellow Mechanics played in recreational leagues and I would join them for practice after my shift. Eventually, I felt strong enough to join a team and have been playing ever since!
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02-03-2014
06:25 PM
02-03-2014
06:25 PM
Congratulations to Denver for winning this contest! Visit http://www.blogsouthwest.com/big-game-station-competition-results/ for all the news.
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Post Wright Amendment Offerings from Dallas Love Field Available Oct. 13, 2014
DALLAS—Feb. 3, 2014—Southwest Airlines (NYSE: LUV) today announced the airline will offer new nonstop service to domestic destinations from Dallas Love Field following the repeal of flight restrictions imposed in 1979 limiting the reach of Dallas’ most convenient airport.
Southwest will begin serving five new nonstop destinations on Oct. 13, followed by ten additional new nonstop destinations on Nov. 2. The addition of these 15 new nonstop destinations will bring Southwest to a total of 31 nonstop destinations from Love Field.
“The official repeal of Wright Amendment federal flight restrictions signifies a turning point for the Southwest brand not just in Dallas, but from coast-to-coast,” said Gary Kelly, Southwest Airlines Chairman, President, and CEO. “We are pleased to offer this new service to the Customers of our home airport, who have waited 34 long years, and we thank the many, many folks who made this opportunity a reality. Goodbye, Wright Amendment. Hello, America!”
Beginning Oct. 13, 2014, Southwest Airlines will launch nonstop service from Dallas Love Field to:
Baltimore/Washington (BWI)
Denver
Las Vegas
Orlando
Chicago Midway
Beginning Nov. 2, 2014, Southwest Airlines will launch nonstop service from Dallas Love Field to:
Atlanta
Nashville
Washington, D.C. (Reagan National)
Ft. Lauderdale/Hollywood
Los Angeles (LAX)
New York (LaGuardia)
Phoenix
San Diego
Orange County/Santa Ana
Tampa
Dallas Mayor Mike Rawlings and former U.S. Senator Kay Bailey Hutchison today joined Kelly and Southwest Employees at a news conference to celebrate the momentous occasion.
The Wright Amendment, and its subsequent revisions, limit Southwest Airlines’ current nonstop all jet service from Dallas Love Field to nine states including Texas. The repeal of the federal law rewrites the map by allowing Southwest to potentially serve an additional 41 states and the District of Columbia (Reagan National airport) from Love Field.
In May, the airline will announce the specific flight schedules and fares for the sale of the new service, giving Southwest’s Customers the first opportunity to book these flights via southwest.com.
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It is with great anticipation that Southwest announces our newest onboard beverage partner—New Belgium Brewing! Along with our other great beverage offerings, you can now request this Colorado-grown delight while flying the skies with Southwest and AirTran!
This is Southwest’s first craft beer experience and we couldn’t be more excited than to share it with the New Belgium Brewing Company. New Belgium has a unique culture, which is not foreign to those loyal to Southwest Airlines. Both companies have had years of profitability, are recognized as eco-friendly and have been awarded best places to work—only a few reasons why this marriage is sure to be a success!
So while on your next flight, be sure to sit back, relax, and enjoy a taste of Colorado. Fat Tire—you are now free to move about the country.
Cheers!
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Southwest Airlines is excited to announce that we have successfully purchased of 54 slots—allowing 27 additional daily fights—in a blind auction, which will allow us to provide additional competition to Washington D.C.’s downtown airport, Reagan National (DCA).
Southwest’s Chairman President, & CEO Gary Kelly had this to say about the successful transaction: “Consumers who appreciate the value and reliability that Southwest and our People deliver are the real winners in this deal. With Southwest’s all-Boeing 737 fleet, we will provide Reagan travelers with more choices, lower fares, and great Customer services. Reagan has long been a convenient but high fare airport. Southwest plans to change that by bringing much needed competition to the nation’s capital.”
Details of the bid on divested slots at DCA will remain confidential under the terms of the deal. The slots that Southwest purchased at DCA became available as a result of a settlement of litigation last fall by the U.S. Department of Justice against the merger of American Airlines and US Airways. The additional permissions to operate new flights will increase service from 17 daily departures to 44—that’s 27 additional daily flights. Destinations, flight schedules, and fares will be announced in the first quarter, with flying to begin in the third quarter. So, stay tuned!
Can’t wait to get to the nation’s capital? You already have many options on Southwest. In addition to Southwest’s presence at DCA and Washington Dulles International Airport (IAD), Southwest offers the greater Baltimore/Washington region more than 200 daily departures from Baltimore/Washington Thurgood Marshall International Airport (BWI) to nearly 60 cities and, beginning on July 1, will offer new daily service on Southwest between BWI and Aruba, the Bahamas, and Jamaica, launching a new international chapter for both the carrier and Maryland’s largest airport. Additionally, this announcement comes on the heels of Monday’s news that new service between Kansas City and DCA will begin on February 1—so you can start planning your trip to see the Cherry Blossoms!
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01-29-2014
08:06 PM
Hi Jonathan ... I reached out to Tina to try to find the answer to your question and she informed me that she received your e-mail. You should get a response with further information soon. Good Luck!
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Sorry to hear that Jessica. I have forwarded your comment to our Customer Relations Team for them to look into.
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01-28-2014
01:12 PM
01-28-2014
01:12 PM
Dallas—Jan. 28, 2014—Southwest Airlines (NYSE: LUV) today announced new service between Kansas City International Airport and Ronald Reagan Washington National Airport beginning Saturday, Feb. 1, 2014. The U.S. Department of Transportation granted Southwest Airlines authority to serve the new route in response to Southwest’s petition, which was actively supported by Kansas City Mayor Sly James and Kansas City Director of Aviation Mark VanLoh, A.A.E. The first flight takes off this coming Saturday and will be operated by AirTran Airways, Southwest’s wholly owned subsidiary, through Feb. 15, after which Southwest Airlines will operate the service itself.
“This announcement solidifies Kansas City’s reputation as a top-tier, centrally-located travel destination for both business and leisure passengers,” said Mayor Sly James. “People across the world are noticing what Kansas City has to offer, and I fully support Southwest’s efforts to increase the volume of crowds coming to our City.”
“Southwest has been interested for the past several years in providing our Kansas City Customers with nonstop access to Reagan National Airport. We thank Mayor James and Aviation Director VanLoh for their active support, and the Department of Transportation for its quick action in making this flight possible,” said Ron Ricks, Southwest Airlines Executive Vice President and Chief Legal & Regulatory Officer. “We have a great partnership with the City and the airport, and we know the route will bring our Customers flying between Washington, D.C., and Kansas City access to more seats and lower fares.”
“When we learned another carrier planned to stop flying to Washington, D.C., we thought Southwest Airlines was the right airline to step in,” said VanLoh. “More than 270 passengers per day fly from Kansas City to D.C., and now they can get there nonstop on Southwest!”
Southwest Airlines’ schedule is now open through August 8, 2014; however, this flight is only available via AirTran distribution channels today through February 6. Beginning February 7, the flights also will be available at southwest.com.
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BOOK NOW! Service to Aruba, The Bahamas, and Jamaica Begins July 1;
Integration of AirTran Airways into Southwest Airlines Enters Final Phase
DALLAS—Southwest Airlines (NYSE: LUV) today delivered Customers a trio of Caribbean beach destinations just in time for summer travel planning. The largest carrier of domestic passengers in the U.S. began selling seats on the first-ever scheduled international flights flown by Southwest Airlines.
“Beginning July 1, 2014, Bags Fly Free® beyond U.S. borders to Aruba, The Bahamas, and Jamaica,” announced Gary Kelly, Southwest Airlines Chairman, President & CEO, to Employees and media assembled for a news conference at the carrier’s headquarters. “As our Customers seamlessly click through southwest.com to make these historic bookings today, our People celebrate the final lap in the journey to make possible our international future.”
Beginning July 1, 2014, Southwest Airlines will operate daily, nonstop flights between:
• Atlanta and Aruba, and Montego Bay
• Baltimore/Washington and Aruba, Nassau, and (twice daily) Montego Bay
• Orlando and (Saturday only) Aruba, and Montego Bay
In this first phase of the Company’s international conversion plan, wholly owned subsidiary AirTran Airways will continue service between Atlanta and Nassau, between Chicago Midway and Montego Bay, as well as flights to/from Cancun, Los Cabos, and Mexico City, Mexico, and Punta Cana, Dominican Republic. By the end of 2014, the carrier plans to complete the launch of Southwest Airlines service to the remaining four international destinations on the Company’s network route map of 96 destinations in six countries. Both carriers’ full flight schedules are now open for booking through Aug. 8, 2014.
The make-ready process for international service has involved nearly all of Southwest’s 45,000 Employees to implement additional technologies, training, and compliance, to obtain operational
and regulatory approvals, and to ready the People, planes, and policies unique to Southwest Airlines to serve Customers in new countries.
“Southwest Airlines democratized the sky from our first flights more than four decades ago,” said Kelly. “Today’s milestone enables us to reach new territory, new Customers, and build upon a four decade foundation of doing right by the travelers who trust our value and our People.”
ABOUT SOUTHWEST AIRLINES CO.
In its 43rd year of service, Dallas-based Southwest Airlines (NYSE: LUV) continues to differentiate itself from other carriers with exemplary Customer Service delivered by more than 45,000 Employees to more than 100 million Customers annually. Southwest is the nation’s largest carrier in terms of originating domestic passengers boarded and operates the largest fleet of Boeing aircraft in the world to serve 96 destinations in 41 states, the District of Columbia, the Commonwealth of Puerto Rico, and five near-international countries via its wholly-owned subsidiary, AirTran Airways. Southwest is one of the most honored airlines in the world, known for its triple bottom line approach that takes into account the carrier’s performance and productivity, the importance of its People and the communities it serves, and its commitment to efficiency and the planet. The 2012 Southwest Airlines One Report™ can be found at southwest.com/citizenship.
From its first flights on June 18, 1971, Southwest Airlines launched an era of unprecedented affordability in air travel described by the U.S. Department of Transportation as “The Southwest Effect,” a lowering of fares and increase in passenger traffic wherever the carrier serves. On every flight, Southwest offers Customers the first two pieces of checked luggage (weight and size limitations apply) and all ticket changes without additional fees. Southwest’s fleet consistently offers leather seating and the comfort of full-size cabins, which are equipped with satellite-based WiFi connectivity, free live TV, and a new, sustainable cabin interior. In May 2011, Southwest acquired AirTran Airways and, by the end of 2014, intends to complete the full integration of AirTran’s network into Southwest. With 41 consecutive years of profitability, the People of Southwest operate nearly than 3,200 flights a day. Southwest Airlines’ frequent flights and low fares are available online only at southwest.com or by phone at 1-800-I-FLY-SWA.
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Resolutions to eat better … isn’t that what January is all about? And nothing can beat the simple goodness that our onboard magazine, Spirit, has for us this month. I don’t know about you, but these two recipes fit my definition of “eating better.” Cheers to 2014!
Created by Midnight Cowboy’s beverage director Bill Norris, Lindsey’s Lament is a bourbon-based belly warmer reminiscent of your favorite winter dessert.
The St. Regis Aspen Resort’s Executive Chef David Viviano’s take on fried mozzarella is full of old-world charm and rustic simplicity.
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At Southwest, we love our jet engines! Recently in our Employee magazine, LUVLines, we ran a quiz to test our Employees' knowledge. We had so much fun with it that I thought our Nuts readers would like to try taking our Engine Quiz for themselves.
On your mark. Get set. Rev!
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01-23-2014
11:10 AM
01-23-2014
11:10 AM
DALLAS, TEXAS - January 23, 2014 - Southwest Airlines Co. (NYSE:LUV) (the “Company”) today reported its fourth quarter and full year 2013 results:
Record fourth quarter net income, excluding special items*, of $236 million, or $.33 per diluted share, compared to fourth quarter 2012 net income, excluding special items, of $65 million, or $.09 per diluted share. This exceeded the First Call consensus estimate of $.29 per diluted share.
Record fourth quarter net income of $212 million, or $.30 per diluted share, which included $24 million (net) of unfavorable special items, compared to net income of $78 million, or $.11 per diluted share, in fourth quarter 2012, which included $13 million (net) of favorable special items.
Record full year net income, excluding special items, of $805 million, or $1.12 per diluted share, compared to full year 2012 net income, excluding special items, of $417 million, or $.56 per diluted share.
Record full year net income of $754 million, or $1.05 per diluted share, which included $51 million (net) of unfavorable special items, compared to net income of $421 million, or $.56 per diluted share, in full year 2012, which included $4 million (net) of favorable special items.
Return on invested capital* (before taxes and excluding special items) for full year 2013 of 13.1 percent, as compared to 7.2 percent for full year 2012.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, "We are happy to report full year 2013 net income of $805 million, and fourth quarter 2013 net income of $236 million, both excluding special items. We are extremely proud of these record results and the tremendous progress made on our strategic initiatives, which produced substantial returns and contributed significantly to our superb 2013 financial performance. Our full year 2013 total operating revenues were a record $17.7 billion, and our cost performance was excellent. We generated strong free cash flow* of $1.0 billion in 2013, allowing us to return $611 million to our Shareholders, through share repurchases and dividend payments, and reduce debt and capital lease obligations by $313 million. Our pre-tax return on invested capital, excluding special items (ROIC), for full year 2013 was 13.1 percent, nearly double the prior year's performance. I want to thank the outstanding People of Southwest and AirTran. They deserve all the credit for producing these strong results, which earned them a $228 million contribution to the Profitsharing Plan for the year 2013, up 88.4 percent, or $107 million, compared to the prior year.
"We ended 2013 strong, with an exceptional fourth quarter performance. Total operating revenues were a fourth quarter record $4.4 billion, increasing 6.1 percent compared to fourth quarter last year. On a unit basis (per available seat mile), our fourth quarter 2013 revenues increased 3.8 percent year-over-year, which is remarkable considering the increase in stage length and seat density. While traffic was impacted at the beginning of the quarter by the federal government shutdown, we saw a healthy rebound in traffic and revenue trends, resulting in a five percent year-over-year increase in passenger unit revenues for the combined November/December period. Strong travel demand and favorable year-over-year unit revenues have continued in January, thus far. And, bookings for the remainder of the first quarter are strong. Based on these trends, we currently expect year-over-year growth in first quarter 2014 unit revenues.
"We also had an outstanding fourth quarter 2013 cost performance, with unit costs, excluding special items, down 2.8 percent year-over-year. We benefited from stable fuel prices, our ongoing fleet modernization efforts, and rigorous cost control efforts across the Company. We closed the year with fourth quarter 2013 economic fuel costs of $3.05 per gallon, a decline of approximately eight percent from fourth quarter 2012. Based on current market prices and our existing fuel derivative contracts, as of January 17 th , we expect first quarter 2014 economic fuel costs to be in the $3.05 to $3.10 per gallon range, which would be a significant drop year-over-year. Excluding fuel, profitsharing, and special items, our fourth quarter 2013 unit costs declined 0.4 percent year-over-year. We expect a year-over-year increase in our first quarter 2014 unit costs, excluding fuel, profitsharing, and special items.
"We are on track with our AirTran integration, achieving approximately $400 million in annual net pre-tax synergies in 2013, as planned. Since 2011, we have converted 17 of the 52 AirTran Boeing 737-700s to Southwest, and we have replaced the flying for 13 AirTran Boeing 717-200s transitioned to Delta in 2013, with Southwest 737 service. Nine more 717s were removed from active service at year end 2013, and the remaining 66 717s are scheduled to be removed from the AirTran network by the end of this year, and transitioned to Delta through 2015. The remaining 35 AirTran Boeing 737-700s are scheduled to be converted to Southwest this year. During fourth quarter, we converted Memphis, Pensacola, San Juan, and Buffalo to Southwest, and launched Southwest service to Richmond. At year end 2013, all remaining domestic AirTran markets had Southwest service. We are pleased with the rapid improvement of our developing markets as we convert AirTran routes into Southwest and optimize our combined networks. With our international reservation system scheduled for implementation later this month, we remain on track to convert AirTran’s seven international markets, along with its remaining domestic markets, by the end of this year. As planned, this will allow us to complete the AirTran integration and retire the brand by the end of 2014.
"We plan to launch international service on Southwest Airlines this year, which will be a huge milestone for us. Construction of a five-gate international facility at Houston's William P. Hobby Airport, expected to open in late 2015, has begun, and can accommodate Southwest service to destinations in the Caribbean, Mexico, Central America, and the northern cities of South America. We also have future plans to bring Southwest near-international service to Fort Lauderdale-Hollywood International Airport (FLL). Under a recently executed agreement with Broward County, Florida, which owns and operates FLL, we will oversee and manage the design and construction of the airport's Terminal 1 Modernization Project. In addition to significant improvements to the existing Terminal 1, the project includes the design and construction of a new five-gate Concourse A with an international processing facility.
“During 2014, we expect to take delivery of 33 new Boeing 737-800s and 12 pre-owned -700s, which will allow us to keep our 2014 capacity relatively flat, year-over-year, as we continue to transition the AirTran 717 fleet to Delta, and retire Classic Boeing 737 aircraft. We continue to optimize the combined Southwest and AirTran route networks, and announced new travel options in 2014 to some of our Customers’ favorite domestic destinations, like San Diego and Portland, Oregon. We also look forward to expanding service to Dallas Love Field, with the October 2014 repeal of the Wright Amendment.
“We are excited about bringing more flights to New York's LaGuardia Airport with our recent acquisition of 12 takeoff and landing slots, pursuant to American Airlines' required divestiture for its merger with US Airways. In addition, we gained permanent control of 10 takeoff and landing slots at LaGuardia that Southwest currently operates under lease from American. In an effort to bring more low fares to Washington’s Reagan National Airport, we also have bid on slots that American is required to divest.
"We enter 2014 financially strong and excited about the opportunities unfolding. We are proud of our many 2013 accomplishments, most notably our strong financial performance that we believe positions us well to achieve our targeted 15 percent ROIC in 2014. As ever, we remain focused on providing job security for our Employees; providing friendly, reliable and low-fare service to our Customers; and enhancing Shareholder value.”
Notable 2013 accomplishments for Southwest Airlines include:
Achieved 41 st consecutive year of profitability, with record profits
Achieved 13.1 percent return on invested capital (before taxes and excluding special items)
Contributed $228 million to the Profitsharing Plan, an increase of $107 million
Returned $611 million to Shareholders through repurchases of $540 million of common stock (38 million shares) and distribution of $71 million in dividends
Reduced long-term debt and capital lease obligations by $313 million
Deferred $1 billion in aircraft capital spending to beyond 2018
Received numerous awards and recognitions, most notably being recognized as the Best Domestic Airline for Customer Service by Executive Travel Magazine's Leading Edge Awards, named Brand of the Year in the Value Airline Category by the Harris Poll, and recognized with the top ranking by InsideFlyer Magazine for Best Customer Service and Best Loyalty Credit Card
For the 17 th consecutive year, Southwest Airlines Cargo received the 2013 Quest for Quality Award, awarded by Logistics Management Magazine
Launched the first Southwest destination outside the 48 contiguous states with service to San Juan, Puerto Rico
Completed the connection between the Southwest and AirTran networks
Expanded Southwest Cargo to the AirTran network
Ended the year with Southwest service in all domestic AirTran airports
Launched AirTran service to Hartford and Oklahoma City
Completed the 143-seat Evolve retrofit of 372 Southwest 737-700s and 78 737-300s
Converted 6 of the 52 AirTran 737-700s to the Southwest livery with Evolve configuration, bringing cumulative conversions to 17
Transitioned 13 of the 88 AirTran 717-200s to Delta Air Lines
Reached a cumulative 65 percent of the AirTran workforce converted to Southwest, with the remaining flight crews and dispatchers scheduled to transition in 2014
Completed equipping all -700 and -800 aircraft with satellite-based WiFi (including completed AirTran conversions) and became the first and only carrier to offer gate-to-gate connectivity
Partnered with DISH to offer “TV Flies Free” in second half 2013; DISH sponsorship was recently extended through 2014
Launched movies on demand, a new WiFi portal, and Messaging feature for iOS users
Remained on track to implement Southwest's International Reservation system in January 2014
Broke ground on the five-gate, international facility at Houston's William P. Hobby Airport, planned to open in late 2015
Acquired 12 slots (for six roundtrip flights) at New York's LaGuardia Airport and permanently secured 10 slots (five roundtrip flights) that are currently being operated by Southwest
Joined the Transportation Security Administration's (TSA) expedited screening program known as TSA Pre Check™
Financial Results
The Company's fourth quarter 2013 total operating revenues increased 6.1 percent to $4.4 billion, while operating unit revenues increased 3.8 percent, on a 2.2 percent increase in available seat miles and a 3.0 percent increase in average seats per trip, all as compared to fourth quarter 2012. Based on current revenue and booking trends, the Company expects year-over-year growth in its first quarter 2014 unit revenues.
Total operating expenses in fourth quarter 2013 decreased 1.0 percent to $4.0 billion, as compared to fourth quarter 2012. The Company incurred costs (before taxes) associated with the acquisition and integration of AirTran, which are special items, of $19 million during fourth quarter 2013, compared to $14 million in fourth quarter 2012. Excluding special items in both periods, total operating expenses of $4.0 billion in fourth quarter 2013 were comparable to fourth quarter 2012.
Fourth quarter 2013 economic fuel costs were $3.05 per gallon, including $.03 per gallon in favorable cash settlements from fuel derivative contracts, compared to $3.32 per gallon in fourth quarter 2012, including $.09 per gallon in unfavorable cash settlements from fuel derivative contracts. Based on the Company's fuel derivative contracts and market prices as of January 17 th , first quarter 2014 economic fuel costs are expected to be in the $3.05 to $3.10 per gallon range, which is significantly below first quarter 2013's economic fuel costs of $3.29 per gallon. As of January 17 th , the fair market value of the Company's hedge portfolio through 2017 was a net asset of approximately $108 million. Additional information regarding the Company's fuel derivative contracts is included in the accompanying tables.
Excluding economic fuel expense, profitsharing, and special items in both periods, fourth quarter 2013 operating costs increased 1.8 percent from fourth quarter 2012, and decreased 0.4 percent on a unit basis. Based on current cost trends, the Company expects first quarter 2014 unit costs, excluding fuel, profitsharing, and special items, to increase from first quarter 2013's 8.21 cents, with full year 2014 unit costs, excluding fuel, profitsharing, and special items, expected to increase year-over-year in the two to three percent range.
Fourth quarter 2013 operating income was a fourth quarter record $386 million, compared to $91 million in fourth quarter 2012. Excluding special items, fourth quarter 2013 operating income was also a fourth quarter record $418 million, compared to $136 million in the same period last year.
Other expenses in fourth quarter 2013 were $52 million, compared to other income of $34 million in fourth quarter 2012. This $86 million swing primarily resulted from $27 million in other losses recognized in fourth quarter 2013, compared to other gains of $62 million recognized in fourth quarter 2012. In both periods, these gains/losses included unrealized mark-to-market gains/losses associated with a portion of the Company's fuel hedging portfolio, which are special items. Excluding these special items, fourth quarter 2013 had $21 million in other expenses, compared to $3 million in fourth quarter 2012, primarily attributable to the premium costs associated with the Company's fuel derivative contracts. First quarter 2014 premium costs related to fuel derivative contracts are currently estimated to be in the $10 million to $20 million range, compared to $5 million in first quarter 2013. Net interest expense in fourth quarter 2013 was $25 million, compared to $28 million in fourth quarter 2012.
For 2013, total operating revenues increased 3.6 percent to $17.7 billion, while total operating expenses of $16.4 billion were comparable to 2012. Operating income for 2013 was a record $1.3 billion, compared to $623 million for 2012. For 2013, special charges (before taxes) associated with the acquisition and integration of AirTran were $86 million. Cumulative costs associated with the acquisition and integration of AirTran, as of December 31, 2013, totaled approximately $410 million (before profitsharing and taxes). The Company expects total acquisition and integration costs to be no more than $550 million (before profitsharing and taxes). Excluding special items in both periods, operating income was a record $1.4 billion for 2013, compared to $838 million for 2012.
As of January 22 nd , the Company had approximately $3.1 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion. Net cash provided by operations during fourth quarter 2013 was $302 million, and capital expenditures were $451 million. For 2013, net cash provided by operations was $2.49 billion, and capital expenditures were $1.45 billion, resulting in free cash flow of approximately $1.04 billion. The Company currently estimates its 2014 capital expenditures to be in the $1.5 billion to $1.6 billion range. The Company repurchased $540 million in common stock, or 38 million shares, during 2013. Since August 2011, the Company has repurchased $1.2 billion, or 111 million shares, of common stock under its $1.5 billion share repurchase authorization. This reduced the Company's outstanding common stock by approximately 14 percent. The Company repaid $313 million in debt and capital lease obligations during 2013, and is currently scheduled to repay approximately $550 million in debt and capital lease obligations during 2014.
Conference Call
Southwest will discuss its fourth quarter and full year 2013 results on a conference call at 11:30 a.m. Eastern Time today. A live broadcast of the conference call also will be available at
http://southwest.investorroom.com.
To see the full press release, please visit swamedia.com
*Additional information regarding special items is included in the reconciliation tables on the full press release located on swamedia.com. See Note Regarding Use of Non-GAAP Financial Measures.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s financial outlook and targets and projected results of operations; (ii) the integration of AirTran and the Company's related financial and operational plans and expectations, including the anticipated timing of full integration and the expected benefits and costs associated with the integration; (iii) the Company's fleet plans, including its fleet modernization and capacity plans and expectations; (iv) the Company’s network plans, expectations, and opportunities; (v) the Company’s plans and expectations with respect to international operations; (vi) the Company's plans and expectations related to managing risk associated with changing jet fuel prices; and (vii) the Company's plans and expectations with respect to capital expenditures and liquidity (including its plans for the repayment of debt and capital lease obligations). These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) demand for the Company's services and the impact of economic conditions, fuel prices, and actions of competitors (including without limitation pricing, scheduling, and capacity decisions and consolidation and alliance activities) on the Company's business decisions, plans, and strategies; (ii) the Company's ability to effectively integrate AirTran and realize the expected synergies and other benefits from the acquisition; (iii) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (iv) the Company's ability to timely and effectively prioritize its strategic initiatives and related expenditures; (v) the Company's dependence on third parties with respect to certain of its initiatives, in particular with respect to its fleet plans; (vi) changes in fuel prices, the impact of hedge accounting, and any changes to the Company's fuel hedging strategies and positions; (vii) the impact of governmental action and regulation on the Company's operations; and (viii) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES
The Company's unaudited consolidated financial statements are prepared in accordance with GAAP. These GAAP financial statements include (i) unrealized non-cash adjustments and reclassifications, which can be significant, as a result of accounting requirements and elections made under accounting pronouncements relating to derivative instruments and hedging and (ii) other charges the Company believes are not indicative of its ongoing operational performance.
As a result, the Company also provides financial information in this release that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company provides supplemental non-GAAP financial information, including results that it refers to as “economic,” which the Company's management utilizes to evaluate its ongoing financial performance and the Company believes provides greater transparency to investors as supplemental information to its GAAP results. The Company's economic financial results differ from GAAP results in that they only include the actual cash settlements from fuel hedge contracts--all reflected within Fuel and oil expense in the period of settlement. Thus, Fuel and oil expense on an economic basis reflects the Company's actual net cash outlays for fuel during the applicable period, inclusive of settled fuel derivative contracts. Any net premium costs paid related to option contracts are reflected as a component of Other (gains) losses, net, for both GAAP and non-GAAP (including economic) purposes in the period of contract settlement. The Company believes these economic results provide a better measure of the impact of the Company's fuel hedges on its operating performance and liquidity since they exclude the unrealized, non-cash adjustments and reclassifications that are recorded in GAAP results in accordance with accounting guidance relating to derivative instruments, and they reflect all cash settlements related to fuel derivative contracts within Fuel and oil expense. This enables the Company's management, as well as investors, to consistently assess the Company's operating performance on a year-over-year or quarter-over-quarter basis after considering all efforts in place to manage fuel expense. However, because these measures are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, the aforementioned measures, as presented, may not be directly comparable to similarly titled measures presented by other companies.
Further information on (i) the Company's fuel hedging program, (ii) the requirements of accounting for derivative instruments, and (iii) the causes of hedge ineffectiveness and/or mark-to-market gains or losses from derivative instruments is included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
In addition to its “economic” financial measures, as defined above, the Company has also provided other non-GAAP financial measures, including results that it refers to as “excluding special items,” as a result of items that the Company believes are not indicative of its ongoing operations. These include expenses associated with the Company's acquisition and integration of AirTran. The Company believes that evaluation of its financial performance can be enhanced by a presentation of results that exclude the impact of these items in order to evaluate the results on a comparative basis with results in prior periods that do not include such items and as a basis for evaluating operating results in future periods. As a result of the Company's acquisition of AirTran, which closed on May 2, 2011, the Company has incurred and expects to continue to incur substantial charges associated with integration of the two companies. While the Company cannot predict the exact timing or amounts of such charges, it does expect to treat the charges as special items in its future presentation of non-GAAP results.
The Company has also provided free cash flow and ROIC, which are non-GAAP financial measures. The Company believes free cash flow is a meaningful measure because it demonstrates the Company's ability to service its debt, pay dividends and make investments to enhance Shareholder value. Although free cash flow is commonly used as a measure of liquidity, definitions of free cash flow may differ; therefore, the Company is providing an explanation of its calculation for free cash flow. For the year ended December 31, 2013, the Company generated $1.04 billion in free cash flow, calculated as operating cash flows of $2.49 billion less capital expenditures of $1.45 billion. The Company believes ROIC is a meaningful measure because it quantifies how well the Company generates operating income relative to the capital it has invested in its business. Although ROIC is commonly used as a measure of capital efficiency, definitions of ROIC may differ; therefore, the Company is providing an explanation of its calculation for ROIC (before taxes and excluding special items) in the accompanying reconciliation tables to the press release (See Return on Invested Capital).
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Hi Sarah ... While the FAA does recommend the use of a child safety restraint system (CRS) onboard, a majority of our Customers like to check those devices. We wanted to display that the bag (which replaces the plastic bags we previously offered) will still hold carseats in addition to strollers.
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01-21-2014
07:36 PM
Hi Jawwad ... you needn't worry since the Live TV streams through your personal tablet, smart phone, or computer. Thanks and we look forward to seeing you onboard soon!
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I am so happy that your search for Mr. Jim Smith was fulfilled after all these years. To many of us, your story is an important lesson in giving and receiving. Over the years, your sharing with APALI youth leadership classes has inspired students to reflect deeply about the meaning of love, identity, family, and community. I am sharing your post with these classes.
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The aircraft that landed at (PLK) Taney County airport in Branson, Missouri, departed at approximately 3:00 PM CST Monday afternoon, after a thorough inspection by Southwest. The aircraft returned to regular service early Tuesday morning. We continue to support the NTSB in their investigation to uncover the circumstances which led the crew flight 4013 from Chicago Midway to land at the airport, several miles from the Branson Airport we serve. The pilots are currently on paid leave, pending the conclusion of the investigation.
We want to, again, thank responders and Branson Airport Administrators for joining in the work with our ground operations staff to immediately take care of our Customers and their baggage. We have since reached out to each Customer directly to apologize, refund their tickets, and provide future travel credit as a gesture of goodwill for the inconvenience.
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The aircraft that landed at (PLK) Taney County airport in Branson, Missouri, departed at approximately 3:00 PM CST, after a thorough inspection by Southwest. The aircraft is scheduled to resume regular service later today. We continue to support the NTSB in their investigation to uncover the circumstances which led the crew flight 4013 from Chicago Midway to land at the airport, several miles from the Branson Airport we serve. The pilots are currently on paid leave, pending the conclusion of the investigation.
We want to, again, thank responders and Branson Airport Administrators for joining in the work with our ground operations staff to immediately take care of our Customers and their baggage last night. We have since reached out to each Customer directly to apologize, refund their tickets, and provide future travel credit as a gesture of goodwill for the inconvenience.
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We expect the aircraft that landed at (PLK) Taney County airport in Branson, Missouri, to depart the airport today. We continue to look into the circumstances which led the Pilot in command of flight 4013 from Chicago Midway to land at the airport, several miles from the Branson Airport we serve. We are cooperating with authorities in this investigation. We want to thank first responders and Branson Airport Administrators for joining in the work with our ground operations staff to immediately take care of our Customers and their baggage last night. We have since reached out to each Customer directly to apologize, refund their tickets, and provide future travel credit as a gesture of goodwill for the inconvenience. Another aircraft was brought into Branson last evening to bring continuing Customers on the flight to Dallas Love Field.
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The Southwest Airlines Pilot in command of flight #4013 safely landed at (PLK) Taney County airport this evening. The Boeing 737-700 carried 124 Customers and a crew of five and was operating as a scheduled flight from Chicago Midway to Branson.
Our ground crew from the Branson airport has arrived at the airport to take care of our Customers and their baggage. The landing was uneventful, and all Customers and Crew are safe. Our focus is on getting our Customers and Crew reaccomodated as quickly as possible tonight.
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