09-08-2014
02:23 PM
09-08-2014
02:23 PM
I like the new livery, especially the heart, but with the exception of the "Southwest" branding over the windows. The white branding with the stark contrast of the windows makes it look like somebody used the aircraft for target practice.
... View more
With National Dog Day on August 26 and the “dog days of summer” quickly coming to a close, what better way to celebrate than with a “Dog Days of LUV” photo contest of pets on vacation!
Between August 26 and September 5, 2014, enter Southwest Airline’s “Dog Days of LUV” contest by submitting an original photo of your pet on vacation via Twitter or Instagram using the hashtag #DogDayContest and tagging @SouthwestAir. Facebook entries will also be accepted; entries must be posted to Southwest Airline’s Facebook wall to be considered.
One lucky winner will receive two roundtrip tickets on Southwest Airlines, a three-night stay at Vdara Hotel and Spa in Las Vegas (a pet-friendly property, of course!), a Southwest Airlines pet carrier, and a roundtrip Pet Fare* in the form of a $200 southwestgiftcard so your small dog or cat can travel with you.
Ready to join the fun? Here’s how you can enter for a chance to win:
Follow @SouthwestAir on Instagram and/or Twitter.
Share your photo of your pet on vacation via your Facebook, Instagram and/or Twitter account between August 26 and September 5, 2014, tag @SouthwestAir, and use the hashtag #DogDayContest. Facebook entries must be posted to Southwest Airline’s Facebook wall.
A panel of judges will evaluate each photo based on creativity, originality, entertainment-value, and Southwest appeal.
Don’t have an Instagram, Twitter and/or Facebook account? No worries! You can sign up today and start following us at @SouthwestAir. Photos on other social networks are welcomed and appreciated, but will not be eligible for contest participation.
Last, but certainly not least, for a limited-time we’re offering our popular Southwest Airlines Pet Carrier at a 10 percent discount. Shop here for one today!
NO PURCHASE NECESSARY. A purchase will not increase your chances of winning. Void where prohibited. Must be a legal U.S. resident and 21 years or older to enter. *For travel on Southwest Airlines, In-Cabin Pet Restrictions apply.
Sponsored By:
Southwest’s “Dog Days of LUV” Pets on Vacation Photo Contest Official Rules
NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCE OF WINNING. VOID IN PUERTO RICO AND WHERE PROHIBITED.
1) How to Enter the Contest
a. Southwest Airlines “Dog Days of LUV” Contest (“Contest”) will begin at 10 a.m. CT on August 26, 2014 and end at 10 pm CT on September 5, 2014 (“Contest Period”).
At the start of the Contest Period potential entrants will have to follow Southwest Airlines on Instagram® via the handle @SouthwestAir, Facebook via Southwest Airlines page, and/or Twitter via the handle @SouthwestAir to enter.
b. To participate in the Contest, you may enter via the following method:
Share your original photo of your pet on vacation via your Facebook, Instagram and/or Twitter during the Contest Period. For Instagram and/or Twitter, tag @SouthwestAir , and use the hashtag #DogDayContest. For Facebook entries, post entry to Southwest Airline’s Facebook wall, and use the hashtag #DogDayContest.
All entries submitted will not be acknowledged or returned. By entering, Entrant grants Sponsor an irrevocable, perpetual, royalty-free, freely transferable license to use the photo for all purposes, in any and all media, whether now known or hereafter devised. Photos must not be copied. Entries may not violate any third party rights nor use any third-party intellectual property such as logos or background signs. Entrants acknowledge and agree that their entry does not violate any rights of privacy or publicity and that they have the written permission of those appearing in their photo to submit their image. Entries must not disparage; contain material that is inappropriate, indecent, or vulgar; or promote bigotry, racism, hatred or discrimination based on race, gender, religion, or sexual orientation. Use of any device to automate entry is prohibited. Proof of submission of an entry shall not be deemed proof of receipt by Sponsor. Sponsor’s computer is the official time keeping device for the Contest. Sponsor is not responsible for entries not received due to difficulty accessing the internet, service outage or delays, computer difficulties or other technological glitches. By entering this Contest, you agree to abide by these Official Rules and acknowledge that this Contest is in no way sponsored, endorsed, or administered by or associated with Instagram, Twitter or Facebook.
c. One entry per person is permitted during the Contest Period. Any person found using multiple Instagram, Facebook, and/or Twitter accounts to enter will be found to be ineligible.
2. Eligibility Restrictions
a. The Contest is open to all legal residents of the 48 contiguous United States and the District of Columbia who are 21 years of age or older and have a valid e-mail address and an Instagram, Facebook, and/or Twitter account as of August 26, 2014. Void in Puerto Rico and where prohibited or restricted by law. The Contest is offered only in the United States. Employees of Southwest Airlines, AirTran Airways, MGM Resorts International, and the members of their immediate families (spouse and parents, children and siblings and their spouses) and individuals living in the same households of such employees are ineligible to enter or win. The Contest is subject to all applicable federal, state, and local laws and regulations.
b. Only one winner per household is permitted in any Contest administered by Sponsor.
c. Entrants are required to provide truthful information and Sponsor will reject and delete any entry that it discovers to be false or fraudulent. Sponsor will disqualify any entry from individuals who do not meet the eligibility requirements, and Sponsor will also delete any entry received from persons under the age of 13 in compliance with the Children’s Online Privacy Protection Act.
3. Prize
One (1) Grand Prize will be awarded.
The winner of the competition will receive two roundtrip tickets on Southwest Airlines, a 3-night stay (double occupancy) at Vdara Hotel and Spa in Las Vegas a Southwest Airlines pet carrier, and a roundtrip Pet Fare awarded in the form of a $200 southwestgiftcard.
Total approximate prize value of all prizes is $1,823.
Southwest Airlines tickets are subject to Southwest Airlines terms and conditions; certain restrictions may apply. No blackout dates. Tickets valid on Southwest-operated, published, scheduled service only in the United States and Puerto Rico. Tickets are not valid on code-share or AirTran operated service or any international service. Airline tickets awarded will expire one year from date of issue. Expiration dates will not be extended, and tickets will not be refundable or redeemable for cash or credit at any time, nor will tickets be replaced if lost or stolen. Tickets may not be sold to a third party. . If the winner does not live in a city served by Southwest Airlines, he/she is responsible for transportation to the nearest airport served by Southwest Airlines. Winner is responsible for booking all travel. Seats on any desired flight are not guaranteed. Government issued ID required to travel.
Southwest Airlines Pet Fares require advanced reservations and airport checkin for pets. Limitations and restrictions apply for pet travel. For pet policies and information on traveling with your pet visit http://www.southwest.com/pets/.
Terms for southwestgiftcard: A southwestgiftcard is only redeemable at southwest.com, 1-800-I-FLY-SWA, or any Southwest Airlines ticket counter for air travel only. A southwestgiftcard is not valid for the purchase of Vacation Packages, Cargo, Hotels, Rental Cars, Group Tickets, additional southwestgiftcards, EarlyBird Check-In, International Baggage Fees, or Inflight purchases. Only four total forms of payment, including southwestgiftcards, may be combined per purchase. A gift card is nonrefundable and not redeemable for cash or credit except where required by federal or applicable state law. A gift card is not replaceable if lost, stolen, or destroyed. Protect the card like cash. For balance check, call 1-866-393-2081. For any additional questions, call 214-932-0333. Activation or use of a southwestgiftcard constitutes acceptance of all terms and conditions listed at southwest.com/giftcard.
Vdara Hotel prize certificate may be utilized for stays Sunday through Thursday only, and is valid until September 30, 2015. Certificate includes the following pet fees - $50 per night fee and $75 cleaning fee. Hotel’s dog friendly policies apply to stay – visit http://www.vdara.com/amenities/dogfriendly.aspx for details.
Taxes and all other expenses, not specifically mentioned herein are the sole responsibility of the winner. No prize substitutions, cash equivalent, or transfer of prizes permitted except at the sole discretion of the Sponsors. Prize subject to availability and the Sponsors reserves the right, at its sole discretion, to award a prize of greater or equal value if the advertised prize is unavailable.
In the event that a prize is mailed to the winner, it will be with the prior written consent of the winner and therefore, winner assumes the risk of its loss. Sponsor is not responsible for the safe arrival of a prize.
4. Selection of Winner
Decisions of judges with respect to the Contest are final. This is a contest of skill. Your chances of winning depend on how well your entry reflects the judging criteria, as compared to the other entries in the Contest.
The judges will be judging on the following qualities:
*Creativity and Originality: 20%
*Entertaining: 25%
*Southwest Appeal (photo should reflect fun Culture and Fun-LUVing Attitude): 35%
*Rules (Read and complied with the official rules): 20%.
a. Based on the above criteria, the top “Dog Days of LUV” pet on vacation submissions will be selected by a panel of judges from Southwest Airlines on or about September 8, 2014. You need not be present to win.
b. Potential winner notification will be made by Sponsors via Facebook/Instagram/Twitter. The potential winners will be asked to contact Sponsor with a given e-mail address provided via comment on the entrant’s Instagram entry or Twitter handle. Once potential winner and Sponsor make e-mail contact, Sponsor will provide a photo for the potential winner to upload to the Instagram account the user uploaded the photo with in order to validate their account. Once the validation occurs, potential winners must execute and return any required affidavit of eligibility and/or liability/publicity release in which they agree to hold Sponsor, MGM Resorts International, Instagram, Twitter, Facebook, and each of their parent, subsidiary and affiliated corporations, and the officers, shareholders, directors, employees, agents and representatives harmless against any and all claims or liability arising directly or indirectly from use or misuse of a prize or participation in the Contest. The affidavit will be mailed or emailed based on the potential winner’s preference beginning September 15, 2014. The affidavit will be mailed or emailed based on the potential winner’s preference upon account validation and must be executed and returned within seven (7) days or prize will be forfeited and an alternate winner may be chosen. If a potential winner cannot be contacted, is unable to validate their account, fails to sign and return the required affidavit of eligibility and liability/publicity release within the required time period, or if a prize or prize notification is returned as undeliverable, potential winner forfeits prize. Upon timely completion and return of required affidavit and release, the winner should expect to receive their prize in the mail within two weeks.
5. Conditions
a. Payments of all federal, state and local taxes are solely the responsibility of the winner. The winner may be required to sign an IRS Form W-9 or the equivalent.
b. By participating in the contest, the winner agrees to have their name, voice, or likeness used in any advertising or broadcasting material relating to the Contest without additional financial or other compensation unless prohibited by law, and, where legal, to sign a publicity release confirming such consent prior to acceptance of the prize.
c. Sponsor is not responsible for lost, stolen, mangled, miss-delivered, postage due, illegible, incomplete or late entries, telephone service outages, delays, busy signals, equipment malfunctions and any other technological difficulties that may prevent an individual from entering or claiming a prize.
d. Sponsor in their sole discretion, reserves the right to disqualify any person tampering with the entry process, the operation of Southwest Airlines website, or otherwise in violation of the rules. They further reserve the right to cancel, terminate or modify the Contest if it is not capable of completion as planned, including infection by computer virus, bugs, tampering, unauthorized intervention or technical failures of any sort.
e. Sponsor reserves the right to make changes in the rules of the Contest, including the substitution of a prize of greater or equivalent value, which will become effective upon announcement.
f. Failure to comply with the Contest rules may result in a contestant’s disqualification solely at the discretion of the Sponsor.
g. The Sponsor is not responsible for typographical or other errors in the printing, the offering or the administration of the Contest, or in the announcement of a prize.
h. Copies of the written Contest rules and a winners list (when complete) are available during regular business hours at Southwest Airlines, Emerging Media P.O. Box 36611, Dallas, TX 75235-1611. For a winners list, send a self-addressed return envelope, after September 8 , 2014. All requests must be received by September 19, 2014.
6. Sponsor
Southwest Airlines Co., Emerging Media, P.O. Box 36611, Dallas, TX 75235-1611
... View more
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. Meet Bruce!
Bruce Lee Fulk
Columbus Ramp Agent
I have drawn off and on all my life, but have never taken an art class. After a long hiatus, I rediscovered my art in 2013 and now find that it’s a fun and relaxing hobby—as long as it doesn't interfere with my fishing and hunting season. I drew this self-portrait on an 11x14 piece of white art paper using a variety of mediums—charcoal, a mechanical pencil for most of the fine detail, a kneaded eraser, and blending stumps.
... View more
It’s that time of year for prices to fall even lower on Southwest Airlines!
Today, Southwest is launching a three-day travel sale with fares starting as low as $49 one-way! For three days only, our Customers can purchase nonstop, one-way tickets for $49, $99, $129, or $149 to select destinations—spread the word!
These low fares are available for purchase on southwest.com starting Tuesday, June 3 through Thursday, June 5, 2014, 11:59 p.m. for the respective time zone of the originating city, for travel every day of the week except Fridays and Sundays, Aug. 25 through Dec. 17, 2014. Blackout dates include Sept. 1, and Nov. 21 through Dec. 2, 2014. Seats are limited.
To see the list of available cities, prices, and to take advantage of these special fares, visit www.southwest.com. Exclusions and restrictions apply.
SOUTHWEST AIRLINES FARE RULES
Purchase from June 3 through June 5, 2014, 11:59 p.m. for the respective time zone of the originating city. Travel August 25 through December 17, 2014, excluding Fridays and Sundays. Travel DAL-BWI, DAL-DCA, DAL-DEN, DAL-LAS, DAL-LAX, DAL-MCO, and DAL-MDW available Oct. 13 through Dec. 17, 2014. Travel DAL-ATL, DAL-BNA, DAL-FLL, DAL-LGA, DAL-PHX, DAL-SAN, DAL-TPA, ATL-PUJ, CUN-MDW, MBJ-MDW, SAT-MEX, and SNA-MEX available Nov. 3 through Dec. 17, 2014. Travel to Florida or Nevada is valid Sunday through Wednesday only. Additionally, travel from Florida or Nevada valid Tuesday through Friday only. Travel between Nevada and Florida is valid on Tuesdays and Wednesdays only. Blackout Dates Apply: September 1 and November 21 - December 2, 2014. Some flights operated by AirTran® Airways. Displayed prices include all U.S. and international government taxes and fees. Seats are limited. Fares may vary by destination, flight, and day of week and won't be available on some flights that operate during very busy travel times and holiday periods. Fares are available for one-way travel. Fares may be combined with other Southwest Airlines® combinable fares. If combining with other fares, the most restrictive fare's rules apply. Sale fares may be available on other days of week, but not guaranteed. Fares are nonrefundable but may be applied toward future travel on Southwest Airlines®, so long as you cancel your reservations at least ten minutes prior to the scheduled departure of your flight. Failure to cancel prior to departure will result in forfeiture of remaining funds on the reservation. Any change in itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime Fare. Fares are subject to change until ticketed. Offer applies to published, scheduled service only.
... View more
05-29-2014
07:19 PM
05-29-2014
07:19 PM
The DOT fine announced today is related to an October 2013 fare sale in the Atlanta market that was supported by television ads offering fares starting at $59 one-way. Unfortunately, the audio portion of the TV advertisement incorrectly stated three cities that were never intended to be a part of the $59 sale. As soon as we became aware of our mistake, we immediately pulled all incorrect advertisements off the air.
Despite our unintentional error, the sale provided significant savings to consumers in Atlanta and across the country – collectively more than 300,000 consumers saved millions of dollars. Southwest provides Customers more discounted seats than any other airline in the U.S. In fact, in 2013 the airline ran 63 separate fare sales - averaging more than one fare sale a week.
We are proud of our low fare commitment to consumers and appreciate the business and support from our Customers. We will continue to provide exemplary Service at low fares.
... View more
We’re thankful to report that there were no injuries today at Sea-Tac International Airport following an issue with a passenger jetbridge related to flight 570 that arrived from Phoenix. Roughly 60 Customers had deplaned when the jetbridge unexpectedly and slowly lowered by approximately six feet due to an apparent mechanical failure. The remaining Southwest Airlines Customers deplaned from another door near the rear of the aircraft via airstairs. We're working to accommodate our affected Customers as this aircraft remains out of service pending inspections.
Our thanks go out to our Southwest Airlines Flight Crews and Ground Employees for their response during this event.
... View more
This post was authored by Communication and Outreach Intern Christine Cermak.
Ever heard of the saying “April showers bring May flowers”? We’ve had some rain in April, but drought is still present across most of the United States. Check out these green gardening tips to be sure that your garden is environmentally friendly and helps to conserve water:
Reuse water. Use buckets or rain barrels to collect rain water. Place the barrels under your gutters to maximize water collection and recycle the water back into your garden!
Water early. When using sprinklers, some of the water evaporates before it has the chance to hit the ground. The best time to water your garden to reduce evaporation is early in the morning, between 4:00 and 9:00 a.m.
Compost. Instead of using chemical pesticides and fertilizers, make your own compost. Composting enriches the soil and helps to maintain moisture. For more information on how to create your own compost, click here.
Buy recycled. Look for nurseries that recycle the plastic used to package each plant. Alternatively, opt to buy seeds instead of plants when possible.
Join a community garden. Community gardens beautify neighborhoods, supply low-cost produce, and educate people to grow resources locally. In addition to giving back to your local community, community gardens are also a way to connect with your neighbors!
Do you have a green thumb, or any green gardening tips to share? If so, comment below!
... View more
04-24-2014
04:40 PM
04-24-2014
04:40 PM
DALLAS, TEXAS - April 24, 2014 - Southwest Airlines Co. (NYSE:LUV) (the “Company”) today reported its first quarter 2014 results:
Record first quarter net income, excluding special items*, of $126 million, or $.18 per diluted share, compared to first quarter 2013 net income, excluding special items, of $53 million, or $.07 per diluted share. This exceeded the First Call consensus estimate of $.16 per diluted share.
Record first quarter net income of $152 million, or $.22 per diluted share, which included $26 million (net) of favorable special items, compared to net income of $59 million, or $.08 per diluted share, in first quarter 2013, which included $6 million (net) of favorable special items.
Record first quarter operating income of $215 million; $242 million excluding special items.
Return on invested capital*, before taxes and excluding special items (ROIC), for the 12 months ended March 31, 2014, of 14.2 percent, as compared to 8.3 percent for the 12 months ended March 31, 2013.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “I am delighted to report record first quarter earnings, which increased significantly year-over-year, despite the disruption caused by more than 7,500 of our flights canceled due to extreme weather conditions and the impact of the shift in timing of the Easter and Passover holidays. This outstanding performance was driven by record first quarter operating revenues of $4.2 billion, and a 1.2 percent year-over-year decline in total operating costs, excluding special items, driven largely by lower fuel prices and our ongoing fleet modernization. Our record first quarter operating income of $242 million, excluding special items, was very strong, especially considering an estimated $50 million unfavorable impact from winter storms. Operationally, our Employees did an outstanding job in difficult conditions taking care of our Customers, and I thank them again for their efforts.
"Our first quarter 2014 earnings performance is a superb start to the year and on plan to achieve a 15 percent pre-tax return on invested capital for the year, excluding special items. Second quarter 2014, benefiting from the Easter and Passover holidays, also is off to a great start, with strong bookings, favorable revenue trends, and stable fuel prices.
"Our balance sheet, liquidity, and cash flows remain strong. We are actively managing our debt and total invested capital, while making strategic investments that have already contributed significantly to our record profitability. We were pleased to return $371 million to Shareholders during first quarter 2014 through the payment of $56 million in dividends and the repurchase of $315 million in common stock. Since August 2011, we have returned $1.6 billion to our Shareholders through share repurchases and dividend payments.
"Our five strategic initiatives are on track and meeting or exceeding expectations. In January, we deployed our international reservation system and began selling Southwest’s inaugural international service to Aruba, The Bahamas, and Jamaica, scheduled to begin July 1, 2014. We quickly followed with selling Southwest service to Cancun and Los Cabos, scheduled to begin August 10, 2014. By the end of this year, we intend to fully convert AirTran’s seven international markets, along with its remaining domestic markets, to the Southwest route network. We have converted 21 of the 52 AirTran Boeing 737-700s to the Southwest Evolve configuration, and plan to convert the remaining 31 -700s this year. This will complete the AirTran integration and retire the brand by the end of 2014.
"We have a significant amount of fleet activity planned this year, as we wind down the AirTran brand and continue to modernize our fleet, resulting in a larger than normal number of aircraft out of scheduled service. Accordingly, we expect relatively flat 2014 available seat miles, year-over-year.
"Our network development and optimization results, to date, have been excellent. We are excited about the opportunity to add new service to New York LaGuardia, Washington Reagan National, and Dallas Love Field this year, as well as to the international terminal under construction at Houston Hobby next year. Looking ahead to 2015, while we have not finalized our fleet and capacity plans, we have been managing to a baseline of 695 aircraft, which was our combined fleet at the time of the AirTran acquisition. We are planning year-over-year growth in our available seat miles derived from increased fleet utilization resulting from the completion of the AirTran integration and the increase in seats from the upgauging of our fleet. Of course, this will drive significant unit cost benefits."
Financial Results and Outlook
The Company's first quarter 2014 total operating revenues increased 2.0 percent, year-over-year, to $4.2 billion, despite an estimated $45 million reduction to revenues from weather-related cancellations. Operating unit revenues increased 3.1 percent, on a 1.1 percent decrease in available seat miles and a 2.6 percent increase in average seats per trip, all as compared to first quarter 2013. While the shift in the timing of the Easter and Passover holidays impacted March results, April bookings and revenue trends, thus far, are strong. Based on April's trends and current bookings for the remainder of the second quarter, the Company expects another solid year-over-year increase in its second quarter 2014 operating unit revenues.
Total operating expenses in first quarter 2014 decreased 1.6 percent to $4.0 billion, as compared to first quarter 2013. First quarter 2014 total operating expenses included an estimated $5 million in net costs associated with winter storms. The Company incurred costs (before profitsharing and taxes) associated with the acquisition and integration of AirTran, which are special items, of $18 million during first quarter 2014, compared to $13 million in first quarter 2013. Cumulative costs associated with the acquisition and integration of AirTran, as of March 31, 2014, totaled $428 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, total operating expenses in first quarter 2014 decreased 1.2 percent to $3.9 billion, as compared to $4.0 billion in first quarter 2013.
First quarter 2014 profitsharing expense was $29 million, compared to $15 million in first quarter 2013. Profitsharing expense in first quarter 2014 was impacted by acquisition and integration costs incurred during that period. In addition, in accordance with the Company's ProfitSharing Plan (the Plan), first quarter 2014 operating profit, as defined in the Plan, was reduced by a portion of the acquisition and integration costs incurred from April 1, 2011, through December 31, 2013, which will be amortized from January 1, 2014, through December 31, 2018.
First quarter 2014 economic fuel costs were $3.08 per gallon, including $.06 per gallon in favorable cash settlements from fuel derivative contracts, compared to $3.29 per gallon in first quarter 2013, including $.05 per gallon in unfavorable cash settlements from fuel derivative contracts. Based on the Company's fuel derivative contracts and market prices as of April 21, 2014, second quarter 2014 economic fuel costs are expected to be comparable to second quarter 2013's economic fuel costs of $3.06 per gallon. As of April 21, 2014, the fair market value of the Company's hedge portfolio through 2017 was a net asset of approximately $252 million. Additional information regarding the Company's fuel derivative contracts is included in the accompanying tables.
Excluding economic fuel and oil expense, profitsharing, and special items in both periods, first quarter 2014 operating costs increased 2.4 percent from first quarter 2013, and increased 3.5 percent on a unit basis. Based on current cost trends, the Company expects both second quarter 2014 and full year 2014 unit costs, excluding fuel and oil expense, profitsharing, and special items, to increase, year-over-year, in the two to three percent range.
Operating income for first quarter 2014 was $215 million, compared to $70 million in first quarter 2013. Excluding special items, operating income was $242 million in first quarter 2014, compared to $112 million in the same period last year.
Other income in first quarter 2014 was $29 million, compared to $24 million in first quarter 2013. The $5 million increase primarily resulted from $53 million in other gains recognized in first quarter 2014, compared to $46 million recognized in first quarter 2013. In both periods, these gains primarily resulted from unrealized mark-to-market net gains associated with a portion of the Company's fuel hedging portfolio, which are special items. Excluding these special items, first quarter 2014 had $16 million in other losses, compared to $5 million in first quarter 2013, primarily attributable to the premium costs associated with the Company's fuel derivative contracts. Second quarter 2014 premium costs related to fuel derivative contracts are currently estimated to be in the $15 million to $20 million range, compared to $12 million in second quarter 2013. Net interest expense in first quarter 2014 was $24 million, compared to $22 million in first quarter 2013.
Balance Sheet and Cash Flows
As of April 23, 2014, the Company had approximately $3.5 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion. Net cash provided by operations during first quarter 2014 was $1.1 billion, and capital expenditures were $407 million, which included the payment for slots acquired at Washington's Reagan National Airport. The Company repaid $46 million in debt and capital lease obligations during the first quarter 2014, and intends to repay approximately $500 million in debt and capital lease obligations during the remainder of 2014, which includes $35 million paid on April 1, 2014, associated with eight of the Company's Fixed-rate B717 Aircraft Notes due in 2017.
During first quarter 2014, the Company generated free cash flow* of $712 million. The Company returned approximately $371 million to its Shareholders through the payment of $56 million in dividends and the repurchase of $315 million in common stock, or 12 million shares, under its share repurchase program, including $200 million under an accelerated share repurchase program with a third party financial institution. In first quarter, pursuant to the accelerated share repurchase program, the Company advanced $200 million to the financial institution and received approximately seven million shares of the Company's common stock, representing an estimated 75 percent of the shares the Company expects to purchase under the accelerated share repurchase program. The specific number of shares that the Company ultimately will repurchase under the accelerated share repurchase program will be determined generally based on a discount to the volume-weighted average price per share of the Company's common stock during a calculation period to be completed by May 9, 2014. At settlement, under certain circumstances, the third party financial institution may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the third party financial institution. Since August 2011, the Company has repurchased $1.48 billion in common stock, or 124 million shares, under its $1.5 billion share repurchase authorization.
Fleet
During first quarter 2014, the Company's fleet was reduced by five to 676 aircraft at period end. This reflects the first quarter 2014 delivery of two new Boeing 737-800s and six pre-owned Boeing 737-700s, as well as the retirement of one Boeing 737-300. In addition, the Company removed 12 Boeing 717-200s from service during first quarter 2014 in preparation for transition. Additional information regarding the Company's aircraft delivery schedule is included in the accompanying tables.
Awards and Recognitions
Named to FORTUNE's 2014 list of World's Most Admired Companies for the 20 th consecutive year and notably, the only commercial airline to rank in the Top Ten
Received the top recognition for best customer experience in the airline industry, according to the 2014 Temkin Experience Ratings
Received the Diamond Award by Air Cargo World with high marks for great Customer Service, Performance, Value, and use of Information Technology
Named Domestic Carrier of the Year by the Airforwarders Association for the fifth consecutive year
Named Domestic Airline of the Year by Express Delivery & Logistics Association for the 14 th consecutive year
Named to the BetterInvesting Top 200 companies
Conference Call
Southwest will discuss its first quarter 2014 results on a conference call at 12:30 p.m. Eastern Time today. A live broadcast of the conference call also will be available at http://southwest.investorroom.com.
*Additional information regarding special items is included in the reconciliation tables that can be found at 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 projected results of operations; (ii) the Company’s strategic initiatives generally and its related financial and operational expectations; (iii) the Company’s fleet plans, including its fleet modernization plans, and its related financial and operational goals and expectations; (iv) the Company’s expectations with respect to its integration of AirTran, including anticipated integration timeframes and the expected benefits and costs associated with the integration; (v) the Company’s growth plans, including its network and capacity plans, expectations, and opportunities; (vi) the Company's plans and expectations related to managing risk associated with changing jet fuel prices; and (vii) the Company's expectations with respect to 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 timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (iii) the Company's ability to timely and effectively prioritize its strategic initiatives and related expenditures; (iv) the Company's ability to effectively integrate AirTran and realize the expected benefits from the acquisition; (v) the Company's dependence on third parties, 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 regulations and other actions related to 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, 2013.
... View more
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. Meet Pam!
Pam Graham
Finance Business Process Consultant
I have rescued greyhounds for a long time; fostering more than 100 dogs so far! Kisa is a special rescue who I have trained to be a therapy dog. Together we visit assisted living centers, hospitals, libraries, and other events, and the response to Kisa is always phenomenal. This form of giving back to our community is rewarding, and it always warms my heart to see the affect Kisa has on everyone we encounter. Interested in turning your four-legged companions into a therapy dog? There are numerous groups that certify therapy dogs like our group Therapy Dogs International; however please know that to qualify as a therapy dog candidate your dog must love people and learn basic obedience skills.
... View more
Wow a lot of use out of an aircraft, a lot of take offs and landing cycles in one day and not to mention depessursation cycle sessions too........But Mr Boeing built a strong rugged aircraft !!!!!!!!
... View more
04-08-2014
11:35 AM
04-08-2014
11:35 AM
DALLAS, TEXAS – April 8, 2014 – Southwest Airlines Co. (NYSE: LUV) announced today that the Company flew 9.6 billion revenue passenger miles (RPMs) in March 2014, a 1.6 percent increase from the 9.4 billion RPMs flown in March 2013. Available seat miles (ASMs) increased 0.8 percent to 11.6 billion from the March 2013 level of 11.5 billion. The March 2014 load factor was 82.7 percent, compared to 82.0 percent in March 2013. For March 2014, passenger revenue per ASM (PRASM) is estimated to have increased approximately one percent compared to March 2013.
For the first quarter of 2014, the Company flew 24.2 billion RPMs, compared to 23.8 billion RPMs flown for the same period in 2013, an increase of 1.7 percent. Year-to-date ASMs decreased 1.1 percent to 30.5 billion from 30.8 billion for the same period in 2013. The year-to-date load factor was 79.3 percent, compared to 77.1 percent for the same period in 2013.
This release, as well as past news releases about Southwest Airlines Co., is available online at southwest.com.
Southwest Airlines Co.
Preliminary Comparative Traffic Statistics
MARCH
2014
2013
Change
Revenue passengers carried
9,806,609
9,892,713
(0.9)%
Enplaned passengers
12,000,553
12,038,645
(0.3)%
Revenue passenger miles (000s)
9,596,470
9,442,734
1.6%
Available seat miles (000s)
11,604,778
11,512,196
0.8%
Load factor
82.7%
82.0%
0.7 pts.
Average length of haul
979
955
2.5%
Trips flown
111,138
116,393
(4.5)%
YEAR-TO-DATE
2014
2013
Change
Revenue passengers carried
25,055,809
25,203,934
(0.6)%
Enplaned passengers
30,656,581
30,712,625
(0.2)%
Revenue passenger miles (000s)
24,155,286
23,756,743
1.7%
Available seat miles (000s)
30,474,546
30,801,424
(1.1)%
Load factor
79.3%
77.1%
2.2 pts.
Average length of haul
964
943
2.2%
Trips flown
299,637
318,514
(5.9)%
... View more
CARRIER TO BEGIN FLIGHTS TO CANCUN AND SAN JOSE DEL CABO/LOS CABOS
ON AUG. 10, 2014, WITH LOW INTRO. FARES
DALLAS—Mar. 3, 2014—Southwest Airlines (NYSE: LUV) today announced the next phase of its international service by offering Customers new Southwest Airlines flights to both the Pacific and Caribbean coasts of Mexico, as well as other new domestic and international flying, as the carrier extended flight schedules through Oct. 31, 2014. Sale fares can be found on southwest.com through March 13.
Beginning Aug. 10, 2014, Southwest Airlines will operate daily, nonstop flights between:
Cancun, Mexico, and Atlanta, Baltimore/Washington, and (Saturdays only) Milwaukee
San Jose del Cabo/Los Cabos, Mexico, and Santa Ana/Orange County
Nassau, Bahamas, and (Saturdays only) Atlanta
To celebrate the new service, Southwest Airlines is offering introductory fares (including U.S. and non-U.S. taxes and fees) for nonstop flights from these U.S. gateways:
Atlanta, Georgia, to Nassau, Bahamas for as low as $127 one-way
Baltimore/Washington, Maryland, to Nassau, Bahamas for as low as $126 one-way
Denver, Colo., to San Jose del Cabo/Los Cabos, Mexico for as low as $192 one-way*
Orlando, Fla., to Montego Bay, Jamaica for as low as $148 one-way
Milwaukee, Wisc., to Cancun, Mexico for $214 one-way
Santa Ana/Orange County, Calif., and San Jose del Cabo/Los Cabos, Mexico for $143 one-way
Restrictions apply. See Fare Rules below.
As the planned conversion of wholly owned subsidiary AirTran Airways’ destinations continues, Southwest intends to serve five countries previously served by AirTran by the end of this year. The carrier previously announced service to Aruba, Nassau, and Montego Bay, beginning July 1, 2014, and throughout this booking window is adding domestic connectivity through international gateway cities to many of the more than 80 cities served by Southwest Airlines across the United States. Read more about the phased connectivity on NUTS About Southwest, the Company’s corporate blog. All these international nonstop flights and connecting itineraries between the U.S. and these countries are available to book now at southwest.com.
The Company’s phased rollout of international nonstop with domestic connecting service also brings new options for Denver Customers who have made Southwest Airlines the largest air carrier in Colorado.
*Beginning in October 2014, Southwest Airlines will offer nonstop service between Denver and:
Cancun, with daily roundtrip flights beginning Oct. 7, 2014; and
San Jose del Cabo/Los Cabos, with Saturday-only service beginning Oct. 11, 2014
The make-ready process for international service has involved almost all of Southwest’s nearly 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.
Fare Rules
Fares must be purchased from March 3 through March 13, 2014, 11:59 pm in the respective time zone of the originating city. Advertised fares are based on itineraries where the point of origin is in the United States. Travel dates apply as follows:
July 1 through Aug. 8, 2014 between:
Atlanta or Baltimore/Washington and Aruba
July 1 through Oct. 31, 2014 between:
Atlanta, Baltimore/Washington, or Orlando and Montego Bay
Baltimore/Washington and Nassau
July 1 through Aug. 8, 2014 between:
Atlanta or Baltimore/Washington and Aruba
August 10 through Oct. 31, 2014 between:
Atlanta or Baltimore/Washington and Cancun
Milwaukee and Cancun (Saturday-only service)
Orlando and Aruba
Santa Ana/Orange County, Calif., and San Jose del Cabo/Los Cabos, Mexico
Atlanta and Nassau (Saturday-only service)
Oct. 7 through Oct. 31, 2014 between:
Denver and Cancun
Denver and San Jose del Cabo/Los Cabos, Mexico (Saturday-only service)
Some flights operated by AirTran Airways. Displayed prices include all U.S. and foreign government taxes and fees. Seats are limited. Fares may vary by destination, flight, and day of week and won't be available on some flights that operate during very busy travel times and holiday periods. Fares are available for one-way travel and may be combined with other Southwest Airlines combinable fares. If combining with other fares, the most restrictive fare's rules apply. Sale fares may be available on other days of week, but not guaranteed. Fares are nonrefundable but may be applied toward future travel on Southwest Airlines, so long as you cancel your reservations at least 10 minutes prior to the scheduled departure of your flight. Failure to change or cancel a flight in your itinerary prior to departure will result in forfeiture of remaining funds on the entire reservation. Any changes in itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Offer applies to published, scheduled service only.
... View more
02-27-2014
11:38 PM
02-27-2014
11:38 PM
voting to make ABQ the next stop in the mobile boarding pass rollout!
... View more
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.
... View more
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
... View more
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.
... View more
02-01-2014
10:35 PM
02-01-2014
10:35 PM
I have not received any Bing specials in at least a month? Is Bing being phased out by Southwest? When I previous emailed SW they send a boilerplate response. I have half a dozen airports and there are no longer any daily Bing notifications?
... View more
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!
... View more
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.
... View more
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.
... View more
01-25-2014
10:08 AM
Yes this I would say is what it means to eat better :), Thank you for posting,
... View more
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!
... View more
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).
... View more
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.
... View more
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.
... View more
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.
... View more
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.
... View more
Loves From