We told of a contest, that comes in a Tweet. So here are the details to help you onto your feet: Something Southwesty and Seussian will get you real far, The prize is four tickets, if you are the star! Remember the hashtag if you want to be in, #SWARhymeTime will ensure you are entered to win. Don't delay, the contest ends at five Herb time. Oh, the places you'll go, on our lovely airline! Congratulations to our winner: From near to far, no boat, no car - just @SouthwestAir to take me there. 2 free bags, no booking fee, SWA - I LUV THEE!#SWARhymeTime — Bruce B (@DaytonaOrBust) March 3, 2012 "SWA Rhyme Time Twitter Contest"
Contest Rules & Regulations
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 “SWA Rhyme Time Twitter Contest” will begin on or around 9 a.m. CT on Saturday, March 3, 2012 and will end on or around 5 p.m. CT on Saturday, March 3, 2012.
b. To participate in the Contest, you may enter via the following method:
Submit a Southwest-style tweet that rhymes to Southwest Airlines Twitter account @SouthwestAir using the hashtag “#SWARhymeTime”. 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 contents of the tweet for all purposes, in any and all media, whether now known or hereafter devised. Tweets must not be plagiarized. 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 those referenced in their tweet. Entries must not disparage; contain material that is inappropriate, indecent, or vulgar; or promote bigotry, racism, hatred or discrimination based on race, gender, religion, 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 Southwest. Southwest Airlines computer is the official time keeping device for the contest. Southwest 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.
c. One entry per person is permitted. Any person found using multiple 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 18 years of age or older and the age of majority in their place of residence as of March 2, 2012. Void in Puerto Rico and where prohibited or restricted by law. The contest is open to legal residents of the United States and is offered only in the United States. Employees of Southwest Airlines, AirTran Airways, 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 Southwest.
c. Entrants are required to provide truthful information and Southwest will reject and delete any entry that it discovers to be false or fraudulent. Southwest Airlines will disqualify any entry from individuals who do not meet the eligibility requirements, and Southwest Airlines will also delete any entry received from persons under the age of 13 in compliance with the Children’s Online Privacy Protection Act.
3. Prizes:
a. One (1) Grand Prize to consist of four (4) roundtrip tickets anywhere Southwest Airlines flies. (Total APV: $840) No prize substitutions, cash equivalent, or transfer of prizes permitted except at the sole discretion of the Sponsor. Prize subject to availability and the Sponsor reserves the right, at its sole discretion, to award a prize of greater or equal value if the advertised prize is unavailable. Taxes are solely the responsibility of the winner.
b. In the event that a prize or prize certificate 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 or prize certificate.
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: 35% tweet should reflect our Culture and Fun-LUVing Attitude. Rules: 20% Read and complied with the official rules.
a. The top “SWA Rhyme Time” submission will be selected by a panel of judges. You need not be present to win.
b. Potential winner notification will be made by Sponsor via Twitter. Potential winner must execute and return any required affidavit of eligibility and/or liability/publicity release in which they agree to hold Sponsor, 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 of the prize or participation in the Contest. Affidavits will be mailed or emailed based on the potential winner’s preference beginning March 5, 2012. Affidavits 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, 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 of required affidavits and release, winners should expect to receive their prizes in the mail by March 31, 2012.
5. Conditions
a. Payments of all federal, state and local taxes are solely the responsibility of the winner. 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 this 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. Southwest Airlines is not responsible for lost, stolen, mangled, mis-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. Southwest Airlines, in is sole discretion, reserves the right to disqualify any person tampering with the entry process, the operation of Southwest Airlines website or is otherwise in violation of the rules. It further reserves 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 list of winners (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 March 3, 2012. All requests must be received by March 20, 2012.
6. Sponsor: Sponsor is Southwest Airlines Co., Emerging Media, P.O. Box 36611, Dallas, TX 75235-1611.
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There once was a plane that was canyon blue. To 73 cities it flew and it flew. For a lucky bunch boarding, there was a treat. On Saturday, a Lorax, they all would meet! But that's not all that Southwest had planned. There'd be reading for all--we are taking a stand! On many of these flights, our dear Crew decreed, "Gather 'round kids, a children's book we will read!" Southwest is known for Sharing the Spirit. We're reading aloud so you all can hear it. If you're riding this weekend on one of our planes. Keep your eyes peeled for Loraxes, hatted cats, and games! We're taking Seuss-style rhymes to the skies to help the National Education Association (NEA) promote and commemorate reading, learning, and community in celebration of Dr. Seuss' birthday! If you're flying with us today and through the weekend, you can expect to experience rhymes and costumes in our airports and the skies. Flight Attendants may be wearing Seuss-style flair, or give a Seussian Safety announcement. They may even invite young Customers to read Dr. Seuss stories over the PA, during longer-haul flights. Tomorrow, we'll be launching a contest on Twitter, to give away some roundtrip tickets in support of the NEA's Read Across America initiative (so put on your Seuss-related thinking caps!). At Southwest, we consider ourselves much more than "just a business." We strive to be a good neighbor in and around the communities we serve. So grab a book and read along with us!
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Today’s an enormously significant day in Southwest history, though not for reasons seen by the naked eye. Southwest and AirTran have received approval by the Federal Aviation Administration for a Single Operating Certificate—a key milestone in the integration of the two airlines. So what is a Single Operating Certificate (SOC)? Put in the simplest terms, it’s a highly-coveted piece of paper that will get neatly framed and hung on the wall (like the picture above). Of course, it’s so much more than that. This certificate will amend our current “Southwest Airlines Air Carrier Operating Certificate” to read “Southwest Airlines and/or AirTran Airways.” The two airlines will conduct operations under a single set of FAA Operations Specifications Most Employees and Customers will see little or no immediate difference, but in the long-term, the SOC enables us to continue on our path to become one carrier. Eventually, as we’ve noted before on Nuts, we plan to fully integrate the AirTran Airways fleet into the Southwest Airlines fleet (paint scheme, Evolve interior, a single ticketing system—the works!). With SOC, that plan continues full steam ahead, remaining on schedule. Meanwhile, it’s business as usual for both Southwest and AirTran, and you’ll still get the same great service from each airline. But you’ll see a gradual shift, as opposed to flipping a switch, as we combine America’s two leading low-cost carriers into one, and spread low fares farther than ever before! One LUV, baby! To view full details of the SOC announcement, click here! And for cryin' out loud, check out Stephen M. Keller's great video here!
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While I'm not sure this was the intended post to comment on, I appreciate your feedback, Elizabeth. We are happy to give you the Freedom to Fly, and help even the playing field for those low fares you're finding elsewhere. I'm sorry you're not satisfied with Southwest. I hope we can find a way to make it a better experience for you, should you find yourself on a LUV jet in the future. I'll work on some funnier jokes, too.
Aslip, thanks for your encouragement.
Both are equally welcome (for different reasons, but welcome all the same).
Hope y'all are well.
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02-26-2012
06:42 PM
527 Loves
A glimpse at our Atlanta opening celebration, followed by the top five blog posts of the week for Nuts About Southwest.
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More than 70 hospitals and organizations nationwide received
18,800 roundtrip airline tickets in 26 states since program’s inception
DALLAS- Feb. 22, 2012—Southwest Airlines (NYSE: LUV) announced today that more than 70 hospitals and charities from across the nation were selected for Southwest’s 2012 Medical Transportation Grant Program. The Medical Transportation Grant Program seeks to lessen the burden of travel expenses for families who are facing serious illness by providing complimentary, roundtrip airline tickets to nonprofit hospitals and medical organizations. Southwest gives the freedom for these hospitals and organizations to provide the tickets to patients who must travel for treatment. For 2012, Southwest will provide more than $2.4 million in free transportation to patients seeking medical treatment. Now in its fifth year, the program has quadrupled the number of participating hospitals since its inception and has provided more than 18,800 tickets to organizations in 26 states. To see a full list of recipients, please visit: www.southwest.com/citizenship.
“We believe in making a difference, and we hear from patients and hospitals how important this program is to families who already are dealing with so much,” said Linda Rutherford, Southwest Airlines Vice President of Communication and Strategic Outreach. “We are proud that we continue to grow this program to provide this much-needed assistance during such a difficult time.”
Southwest Airlines has joined forces with photographer Robert X. Fogarty and Dear World, which works through the medium of photography to give its subjects a simple and profound voice through photos. These emotional and impactful photographs help convey the message of hope, the importance of the Medical Transportation Grant program, and Southwest’s commitment to making a difference.
Each person in the photos has his/her own story to tell, whether it is a patient and his/her family from Texas Scottish Rite Hospital in Dallas, volunteers from the Red Cross, families from the KIDD’s Kids Foundation, or Southwest Airlines Employees, each chose messages that resonated with their personal circumstances.
These photos highlight making a difference, being who you are, and celebrating personal victories. To see these photos, go to www.swamedia.com.
To read about the impact of the Medical Transportation Grant program from recipients of the program, visit Southwest Airlines Nuts About Southwest blog: www.blogsouthwest.com. To learn about qualifications for travel assistance through the designated organizations, please contact the Social Work, Travel/Concierge Service, or Patient Assistance Department directly at each location, as each have unique guidelines for administration of tickets.
About Southwest Airlines Southwest Airlines continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. With the addition of Atlanta (which opens on Feb. 12, 2012), Southwest will serve 73 cities in 38 states and remains one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/citizenship to read the Southwest Airlines One Report™. Based in Dallas, Southwest currently operates more than 3,300 flights a day and has more than 37,000 Employees.
- www.southwest.com –
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Southwest Airlines and AirTran Airways Open Flight Schedules through Nov. 2, 2012; Southwest Launches Fare Sale Between Detroit and Las Vegas
DALLAS—Feb. 20, 2012—Southwest Airlines (NYSE: LUV) and its wholly owned subsidiary AirTran Airways announced today new nonstop routes as they extend their flight schedules for travel bookings out through Nov. 2, 2012. Southwest announced new nonstop service between Detroit and Las Vegas and AirTran announced new nonstop service between Des Moines and Chicago Midway. In addition, Southwest will now operate two daily nonstop flights between Atlanta and San Francisco as it transitions this route from an AirTran-operated city pair to one operated by Southwest. Southwest also will initiate one daily nonstop flight between Atlanta and Orlando, with AirTran continuing its nine daily flights between these cities. To view a blog post about the new service, please visit www.blogsouthwest.com. To book flights, please visit: www.southwest.com or www.airtran.com.
“Southwest and AirTran are continuing to make schedule additions and adjustments to provide the best flight schedule possible for Customers,” said Bob Jordan, Southwest Airlines Executive Vice President and Chief Commercial Officer and AirTran Airways President. “We are looking for ways to maximize our fleet, our operations, and our low fares to give Customers more options when traveling.”
To celebrate the new route between Detroit and Las Vegas, Southwest launched a $99 one-way fare sale for this route. Customers can purchase the low fares today through Feb. 27, 2012, for travel between Sept. 30, 2012, and Nov. 2, 2012 (see Fare Rules below). In addition to low fares, Southwest Airlines allows Customers to check two bags for free (weight and size limits apply) and doesn’t charge a fee to change a ticket. To take advantage of the fare sale, please visit: www.southwest.com.
About Southwest Airlines
Southwest Airlines continues to differentiate itself from other low-fare carriers—offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded. Southwest serves 73 cities in 38 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,200 flights a day and has more than 37,000 Employees systemwide.
About AirTran Airways
AirTran Airways, a wholly owned subsidiary of Southwest Airlines Co., has been ranked the top airline in the Airline Quality Rating study twice in the past four years. AirTran offers Gogo Inflight Internet Connectivity and coast-to-coast service on North America's newest all-Boeing fleet. The airline's low-cost, high-quality product also includes assigned seating and Business Class. To book a flight, visit airtran.com.
Fare Rules
Sale fares are available only on southwest.com or swabiz.com. One-way fares can be purchased from Feb. 20, 2012, through Feb. 27, 2012, 11:59 pm PT, for travel between Sept. 30, 2012, and Nov. 2, 2012. Displayed prices are inclusive of all government taxes and fees. Seats are limited. Fares may vary by destinations, 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 combinable fares. Fares are not combinable with Senior Fares. When combining fares, all rules and restrictions apply. Fares are nonrefundable but may be applied toward future travel on Southwest Airlines. Fares are not available through the Group Desk. 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.
southwest.com
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I was pleased to discover yesterday that Southwest Airlines has taken top honors as "most desired brand" in a recent study, published today in Forbes Magazine. The study, put out by a neuromarketing firm named "Buyology," is rather unique, in that it uses a technique called "latency response" to garner results. The method, in essence, makes the subject choose quickly before conscious thought takes place. The milliseconds of delay before each choice gauge the difficulty of the choice, essentially evaluating non-conscious preferences. 4,000 subjects were used to evaluate 220 diverse brands. This particular query was conducted in the first week of February, starting after the Super Bowl, so the results are very fresh. Both men and women were tested separately (yet we still took top honors among both).
Men's Top Five:
1. Southwest Airlines
2. Cadillac
3. BMW
4. Dove
5. Bed Bath & Beyond
Women's Top Five:
1. Southwest Airlines
2. Google
3. Hallmark
4. Dove
5. JetBlue
It's a popular myth that we only use a small portion of our brains (10% - 20%, depending on which subscribing party is asked). By scientific definition, your brain is a thinking organ that learns and grows by interacting with the perception and action. I suppose a person's brain also could be seen as a type of air traffic control. Whatever the case, recall is a powerful thing. And we should all be proud to know that Southwest Airlines is, by a large margin, the first thing both men and women think of when asked about great companies.
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This blog chronicles our grand entrance into Atlanta, and the state of Georgia. You can also follow our Atlanta At Last coverage on Twitter, and as told by four guest bloggers with the AJC (Atlanta Journal-Constitution). Tuesday, February 14th: Atlanta, you have taken our collective breaths away. We can feel the love from Customers, our various hosts for this opening weekend, and our fellow AirTran family members who already call ATL home. To that last point, it was great to celebrate one final time Monday evening, and as one, at our Atlanta Message to the Field. The yearly Messages to the Field (there are multiple) involve our Leaders traveling to a handful of our cities to inspire, and set the course for the year ahead. The key message from Gary: to whom much is given, much is expected. So true, and we have a lot to be thankful for at Southwest. Happy Valentine's Day, everyone. We can feel the LUV! Monday, February 13th: Today marked the second day of service, and we celebrated with Georgia dignitaries at Hartsfield-Jackson Atlanta International Airport. Georgia Governor Nathan Deal introduced Southwest Chairman, President, and CEO Gary Kelly. Meanwhile, in our Atlanta out-markets (our initial five cities, that is), Customers new and old were racing to "Spot the Peach." In Denver, for instance, our peach Karissa showed off her ice skating talents. Sunday Morning, February 12th: The first flights were greeted by dozens of beaming Southwest and AirTran Employees, ready to send off our Customers in style. The morning was topped off with an unbelievable flash mob, put together and choreographed by Employees of both our great Companies, right here in Atlanta. Our big One LUV family never ceases to amaze me. It is truly remarkable to see them in action, wowing the Customers (and fellow Employees) time and time again.
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"Millions of peaches, peaches for me. Millions of peaches, peaches for free." These iconic words, sung by The Presidents of the United States of America, were hard to fathom at the time of their popularity. Nowadays, the numbers are easier to grasp (think Dr. Evil, where "one million dollars" isn't really all that much anymore). But you never really heard much about traveling peaches, let alone in large quantities. That's all about to change, because we're unleashing five peaches into Atlanta's first inbound/outbound markets: Austin, Baltimore, Chicago, Denver, and Houston. Better still, these peaches aim to help you save on flights, and maybe even earn free roundtrip tickets, and a vacation in Atlanta. If you live in any of the areas just mentioned, here's where we'll be on Monday, February 13 (Spot the Peach Day!): AUSTIN: 10:00 a.m. - 10:45 a.m. - People flock to this park every Fall for music. 11:00 a.m. - 12:00 p.m. - A music shop so good, it shouldn't be associated with a losing battle. 12:15 p.m. - 1:15 p.m. - In front of a Longhorn-rooting union for the academically-inclined. BALTIMORE: 11:00 a.m. - 12:00 p.m. - The "inner" part of the major seaports in the United States. 12:15 p.m. - 1:00 p.m. - Premier location for conventions, tradeshows and expositions in the Mid-Atlantic Region. 2:00 p.m. - 3:00 p.m. - This mall is Maryland's top shopping, dining and entertainment destination, with over 200 stores including manufacturer and retail outlets, and unique specialty stores. CHICAGO 10:00 a.m. - 11:00 a.m. - A plaza building fit for the State. 11:15 p.m. - 12:15 p.m. - A mile so magnificent, you'd better bring your wallet. 12:30 p.m. - 1:30 p.m. - The site of a famed artist's sculpture, in the center of a plaza for former Mayors. DENVER 11:00 a.m. - 12:00 p.m. - I'm Southwest-themed, cold, and you can glide on me! 12:30 p.m. - 1:30 p.m. - Mile High City’s oldest and most historic block, great for shopping and dining. 2:00 p.m. - 3:00 p.m. - This piece is called, "I See What You Mean." It's a steel sculpture, encased in a fiberglass and cement composite, by artist Lawrence Argent. HOUSTON 11:00 a.m. - 12:00 p.m. - Batter up! You might stop here for some juice in the offseason. 12:15 p.m. - 1:00 p.m. - You will get a great view of all of Houston from the tallest composite building in Texas (you can bank on it). 1:30 p.m. - 2:30 p.m. - The largest mall in Texas, perfect for buying that new outfit for your trip to Atlanta. As for the prize, here's how you become eligible to win it: Simply find the peach in your city, take a goofy picture with him/her. Once you've done that, upload it to Twitter while mentioning @SouthwestAir and including the #AtlantaAtLast hashtag! Prize includes: Two roundtrip tickets on Southwest Airlines Car rental provided by Hertz Two-night stay at Intercontinental Buckhead Hotel OFFICIAL CONTEST RULES Southwest Airlines - Spot the Peach Contest 1. To Enter: No purchase or obligation necessary. Contest runs February 13, 2012 from 9:00 am CST – 6:00 pm CST. To enter without purchase or obligation, submit a picture, with one of our peaches (appearing in Austin, Texas; Baltimore, Maryland; Chicago, Illinois; Denver, Colorado; or Houston, Texas) to @SouthwestAir on Twitter, using the #AtlantaAtLast hashtag. By entering, Entrant grants Sponsor an irrevocable, perpetual, royalty-free, freely transferable license to use the picture for all purposes, in any and all media, whether now known or hereafter devised. Entries may not violate any third party rights nor use any third-party intellectual property such as logos, trademarks, copyrighted 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 picture 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, sexual orientation. All entries will not be returned. Entries limited to one (1) per person. Any person found using multiple Twitter accounts to enter will be found to be ineligible. Anonymous entries will be considered invalid. You warrant your picture will not be sexually explicit, unnecessarily violent or derogatory. It cannot promote drugs, alcohol, or firearms. 2. Selection of Winner: On or about February 14, 2012 at 5:30 pm CST, members of the Southwest Airlines Emerging Media Team will review all eligible entries received and choose a winner. The judges will be judging on the following qualities:∙ Creativity and Originality: 20%∙ Entertaining: 25%∙ Southwest Appeal: 35% - entry should reflect our Culture and Fun-LUVing Attitude.∙ Rules: 20% Read and complied with the official rules. Prizes are guaranteed to be awarded. 3. Prize: Five (5) Grand Prizes to consist of two (2) roundtrip tickets on Southwest Airlines (APV for Southwest Airlines tickets is $420), a two-night (2) hotel stay at Intercontinental Buckhead Hotel (APV for Intercontinental Buckhead hotel stay is $400), one (1) Hertz car rental gift certificate (APV for Hertz gift certificate is $100). Airline tickets are subject to Southwest Airlines terms and conditions; certain restrictions and blackout dates may apply. Airline tickets awarded will be open origination and open destination and will expire on 2/14/2013. Tickets issued by Southwest Airlines will bear the date of issue and the date of expiration. 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. Tickets valid on Southwest-operated, published, scheduled service only. Hotel stay is based on double occupancy. Room availability may be limited and certain dates may be completely excluded. Hertz rental restrictions will apply to use of the gift certificate. If a winner does not meet the requirements for the rental car, (such as being at least 25 years or older with a valid drivers’ license and a major credit card in his/her name) that portion of the prize will be forfeited in its entirety. 4. Eligibility: Contest open to all legal US residents, 21 years and older as of February 13, 2012. Employees of Southwest Airlines Co., AirTran Airways, Inc., and their advertising and promotions agencies, and their immediate families (spouse and parents, children and siblings and their spouses) and individuals living in the same households of such employees are ineligible. Void where prohibited or restricted by law. Contest subject to all applicable federal, state, and local laws and regulations. By participating, entrants agree to these official rules and accept decisions of the Sponsor as final. Void in Puerto Rico and where prohibited by law. The promotion is offered in the United States only and shall only be construed and evaluated according to United States law. Do not proceed in this site if you are not located in the United States. 5. To Claim Prize: Potential winners only will be notified by Southwest Airlines via e-mail, and potential winners must provide valid address (No P.O. Boxes). Unclaimed or undeliverable prizes will be forfeited and awarded to an alternate winner. Prizes are guaranteed to be awarded. Acceptance of prize constitutes permission (except where prohibited) to use winner's name, hometown and likeness for purposes of advertising, promotion and publicity in any media without additional compensation. Potential winners must execute and return any required affidavit of eligibility and/or liability/publicity release within one (1) day of notification attempt or prize will be forfeited and an alternate winner may be chosen. If a potential winner cannot be contacted, 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. 6. Limitation of Liability: Neither Sponsor, nor their affiliated entities, are responsible for printing or typographical errors in any related materials; stolen, fraudulent, entries or mail; or transactions that are processed or lost due to computer or electronic malfunction. Winners are solely responsible for payment of all federal, state, and local taxes on prize and for any travel or other expenses not specifically mentioned in prize description. Sponsor reserves the right to cancel or modify Contest if fraud or technical failure compromise the integrity of the Contest as determined by Sponsor in its sole discretion. This Contest offer is being made exclusively by Sponsor. Sponsor not responsible for technical, hardware, software or telephone failures of any kind, lost or unavailable network connections or fraud, incomplete, garbled or delayed computer transmission whether caused by Sponsor, user, or by any of the equipment or programming associated with or utilized in the promotion or by any technical or human error which may occur in the process of submissions which may limit a participants ability to participate in this promotion. 7. Winner's List: To request a Winner's Name List, send a self addressed stamped return envelope, after February 12, 2012, to Southwest Airlines Emerging Media. All requests must be received by March 13, 2012. Utah and Washington residents may omit return postage. 8. Sponsor: Southwest Airlines Co., P.O. Box 36611, Dallas, TX. 75235-1611
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02-10-2012
03:01 PM
474 Loves
Ahead of our big Atlanta milestone, a look at the Top 5 Blog Posts for This Week on Nuts About Southwest.
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01-27-2012
07:03 PM
558 Loves
We take the show on the road to Sundance, for the 37th Episode of the SWA Stew.
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Southwest is a proud sponsor of the Sundance Film Festival, and part of that sponsorship is being able to see the fruits of our labor during festival week. The following is a live chronicle of what the Southwest Sundance Team is doing out here, along with a few completely unrelated anecdotes along the way. Wednesday, January 25 4:23PM My time is winding down. The end is nigh. What a great experience this has been. The winter air is biting, but the scenery is beautiful. Last night, I caught the movie GOATS, directed by Christopher Neil. David Duchovny plays "Goat Man," a botanist in Arizona who watches over Ellis, a teenager getting ready for prep school (is that redundant?) and caught in the middle of separated parents who can't see eye to eye. That's my abbreviated, amateur summation, anyway. Tomorrow, I'll be sharing a plane ride with Mr. Neil, primarily taking your questions via Twitter, and also asking a few of my own. You can follow along by searching the hashtag #GOATS, or by simply paying attention to our @SouthwestAir account. In the meantime, I'm about to head to Main Street for a bite to soak it all in one last time. This place is brimming with art and culture. If these walls could talk... A Preserved Banksy Piece, Near The Egyptian Theater - Brooks Tuesday, January 24 1:25PM We're regulars now. I walk around waving to the locals, expecting them to wave back (some do, most don't). It's been really cool to see Southwest integration in several films, and around the festival. Most recently, we got back from volunteering with several Southwest Employees at one of the holding tents, where ticketholders and waitlist hopefuls stay warm. We handed out peanuts, pretzels, and a chance to win roundtrip tickets on Southwest (good luck, everyone!). Sunday night, we sponsored the Sundance Late Night Lounge, a place where filmmakers and their constituents were able to relax, mingle, and talk about their industry. Tonight, I have the privilege of attending the world premiere of GOATS. Thursday, I'll be sharing a plane with the film's director, Christopher Weir, and conducting a live tweetup. So if you have any questions for Christopher, be sure to leave them in the comments section, or use the #GOATS hashtag on Twitter. - Brooks Sunday, January 22 12:45PM Last night, we continued our Sundance experience by sponsoring a Happy Hour and an exclusive s, creening of the film Robot and Frank. The crazy blizzard outside did make for a challenging drive for some, but it didn’t keep the die-hard film buffs and Southwest fans from joining us for this fun evening...but seriously the weather was nuts! Kudos to Today’s Mama for helping us host a fun Recharge Happy Hour at the Blind Dog restaurant. All attendees received an awesome swag bag, which included sweet headphones, iPod speakers, Southwest peanuts, local cider beer, and festive Utah popcorn. Here’s a pic we snapped before Whitney ate all the popcorn:
At the film, Ashley Dillon welcomed our guests and gave away roundtrip tickets on Southwest to two lucky attendees…you can probably imagine the craziness that ensued when she told everyone to look under their armrests for the tickets!
Southwest Ticket Hunt
The film itself was a sweet story set in the future where people hire robots as personal assistants, health care aides, and librarians! It was thought provoking, endearing, and witty (and definitely made me want a robot someday).
Well, Brooks has his Cousin Eddie hat on which means it’s time for us to hit up Main Street to give away more tickets to films throughout the week! Follow us on Twitter if you are interested in snagging some! Check ya later! Brooks with Two Ticket Winners Gary and Erica - Christi McNeill Saturday, January 21 10:38AM We awoke to a blizzard. Yesterday, the mountains were crystal clear in the distance, and today, they are clouded by a constant snow. I appreciated the mountain view, but this wintery aesthetic is equally inviting. Last night, we told you (and showed you) a little about our integration into Sundance. We were also honored to be able to attend the world premiere of Celeste and Jesse Forever, starring Rashida Jones and Andy Samberg. Rashida Jones, who co-wrote the film with Will McCormack, explained the film was about, "Our definition of happiness, and how it doesn't always end up being what we thought it would." The cast of Celeste and Jesse Forever (minus Rashida Jones, who is far right) Next week, our own Stephen M. Keller will shoot a short documentary about the film's director, Lee Toland Krieger, as he travels to Boston to showcase his film. We're so excited to host such a unique experience on Southwest. We're also putting the Southwest experience on the ground, like you saw yesterday with our Egyptian Theater integration. We have these signs (pictured below), to help direct ticket holders, pass holders, and film-going hopefuls. . Tonight, we're going to host Customers, and Southwest Friends & Family, at a happy hour and private screening. More to come on that later! - Ashley Dillon Saturday, January 21 12:08AM Whew. Time flies. We've been to headquarters, walked past the Egyptian, and got our Sundance bearings. Also got a little glimpse of the street life (a piano man and violist, and a puppeteer). Very cool. It makes sense after thinking about it, but I originally didn't anticipate so much abstract art to be going on. Time for bed, but as promised, here's a little glimpse at Southwest's Sundance influence: 'til tomorrow (or later today, as it were!). - Brooks Friday, January 20 1:34PM We've arrived. There's a lot of snow on the ground. We took a shuttle from SLC to Park City, and played a mean game of Catch Phrase on the way. Fred, who drove us, is a gamer; a true Catch Phrase encyclopedia. We're now planning to visit our space at festival headquarters (complete with charging stations and our business seats), and also the famed Egyptian Theater, which is apparently decked out with a Southwest Airlines theme. Having never been here, this is all awesome and exciting. Can't wait to see what the main drag of the festival looks like. I'll be back later, with pictures! By the way, don't forget to enter our Viddy contest! - Brooks
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01-20-2012
05:12 PM
494 Loves
The big announcement is here. You've seen it plenty now... Evolve: The New Southwest Interior. We had a lot of other great posts this week, too. Our esteemed Coworker, Karen Voelkel, celebrated thirty years at Southwest, and wrote about the changes she's seen along the way. James' aeronautical chart prank is also back, and still as hilarious as ever. Then there was the heartwarming story of Tacey and her family, who we helped fly down to the National Finals Rodeo. Finally, remember to sign up for our Viddy contest!
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DALLAS, TEXAS – January 19, 2012 – Southwest Airlines Co. (NYSE:LUV) (the “Company”) today reported its fourth quarter and full year 2011 results. Fourth quarter 2011 net income was $152 million, or $.20 per diluted share, which included $86 million (net) of favorable special items. This compared to net income of $131 million, or $.18 per diluted share, for fourth quarter 2010, which included favorable special items totaling $16 million (net). Excluding special items, fourth quarter 2011 net income was $66 million, or $.09 per diluted share, compared to net income of $115 million, or $.15 per diluted share, in fourth quarter 2010. This exceeded Thomson’s First Call mean estimate of $.08 per diluted share for fourth quarter 2011. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.
For the full year 2011, net income was $178 million, or $.23 per diluted share, which included $152 million (net) of unfavorable special items. This compared to $459 million, or $.61 per diluted share, for full year 2010, which included $91 million (net) of unfavorable special items. Excluding special items, full year 2011 net income was $330 million, or $.43 per diluted share, compared to net income of $550 million, or $.74 per diluted share, for full year 2010.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “Excluding special items, fourth quarter 2011 net income was $66 million, and full year 2011 net income was $330 million. We had an outstanding revenue performance. Our fourth quarter operating revenues were a record $4.1 billion. Fourth quarter passenger revenues were strong, driven by record yields and continued high load factors. Compared to the prior year, our fourth quarter passenger unit revenues increased 8.2 percent (on a combined basis, as defined below). Based on current traffic and booking trends, we expect another strong passenger revenue performance in first quarter of 2012.
“While it is always disappointing to report a year-over-year decline in profits (excluding special items), the fourth quarter and full year declines were primarily caused by significantly higher fuel prices. Our fourth quarter economic fuel costs per gallon increased 33.7 percent to $3.29, compared to our combined fuel costs of $2.46 per gallon in fourth quarter last year. Our full year 2011 combined economic fuel costs were $3.18 per gallon, an increase of 34.7 percent, compared to our combined fuel costs of $2.36 per gallon last year. Based on market prices as of January 13 th , our first quarter 2012 economic fuel costs, including fuel taxes, are estimated to be approximately $3.35 per gallon, compared to our combined economic fuel costs, including fuel taxes, of $2.95 per gallon in first quarter last year. High energy prices demand continued focus on improving productivity and eliminating waste.
“Despite the decline in earnings, 2011 was a momentous year at Southwest Airlines. We celebrated our 40 th year of providing legendary low fare, high quality, domestic air travel and delivered our 39 th consecutive year of profits to our Shareholders. We launched service to Greenville-Spartanburg and Charleston, South Carolina and Newark, New Jersey within two weeks time, increasing Southwest’s domestic footprint to 72 cities. In March, we launched our All-New Rapid Rewards® program. The completely revamped, industry-leading frequent flyer program continues to grow at a strong pace. Results, thus far, are well beyond our expectations.
“On May 2 nd , we acquired AirTran Airways, increasing our fleet by 140 aircraft, and extending our combined network into key markets we didn’t previously serve, such as Atlanta and Washington, D.C., via Ronald Reagan National Airport, as well as many smaller domestic cities and leisure markets in the Caribbean and Mexico. We also expanded our presence at New York LaGuardia, Boston, Milwaukee, and Baltimore/Washington.
“While it will take several years to fully integrate AirTran into Southwest Airlines, I am very proud of the tremendous progress in only eight months’ time. We are on track to obtain our single operating certificate this quarter. The Southwest Airlines Pilots’ Association and the Air Line Pilots Association took the lead on negotiating a seniority list integration (SLI) agreement that was ratified by both Pilot groups. The Flight Attendants’, Mechanics’, and Flight Instructors’ unions have tentative SLI agreements, currently out for vote by the memberships. As a result of the superb efforts of our People, we are already producing over $200 million of net annualized pre-tax synergies, which is 50 percent of our $400 million target by 2013 (excluding acquisition and integration expenses). For 2011, we realized $80 million in net pre-tax synergies, and the acquisition was modestly accretive to our 2011 results, excluding special items, as planned.”
The Company incurred $134 million in expenses (before taxes) associated with the acquisition and integration of AirTran during 2011, including $37 million in fourth quarter 2011. The Company expects total acquisition and integration expenses will be approximately $500 million.
Kelly continued, “In December, we unveiled our fleet modernization plans, including the launch of the B737-MAX aircraft beginning in 2017, representing our fourth time as Boeing’s launch customer. Our agreements with Boeing afford us significant flexibility to replace our older, less efficient aircraft with new Boeing 737-700/800 aircraft and the B737-MAX aircraft. During 2012, we will take delivery of 33 737-800s, with the first delivery of the -800 model to Southwest scheduled for March. Earlier this week, we announced the final prong of our fleet modernization plans. Leveraging the new Boeing Sky Interior from the -800 model, we decided to retrofit our -700 fleet with an updated cabin interior. Evolve: The New Southwest Experience is a -700 cabin refresh intended to enhance Customer comfort, personal space, and the overall travel experience. It allows for the added benefit of six additional seats, along with more climate-friendly and cost-effective materials. Our fleet modernization plans have been designed to drive significant value in the near and long term.
“Operationally, we finished the year strong with our highest December ontime performance in 15 years. Our People continue to deliver outstanding levels of Customer Service, as recognized by Southwest Airlines being named the 2011 Customer Service Champion by J.D. Powers, and the Customer Satisfaction Leader in Consumer Reports’ list of airline ratings.
“I commend each of our 45,000+ Warriors for their hard work and notable accomplishments. We accomplished everything we set out to do in 2011, with soaring fuel costs the only disappointment. As we prepare for our next 40 years, our target is fixed on a 15 percent pretax return on invested capital. Capital commitments for 2012 are approximately $1.3 billion, our 2012 capacity is estimated to be flat with 2011, and we currently plan to end 2012 with 691 aircraft in our fleet. Future capital spending will be carefully monitored with a focus on generating free cash flow. We are committed to providing exceptional Customer Service at everyday low fares; focused on investing in the Customer Experience while preserving our low cost position; and engaged in our strategic initiatives to drive Shareholder value.”
Financial Results and Outlook
AirTran Airways, Inc. became a wholly-owned subsidiary of the Company on May 2, 2011. Results discussed in this release and provided in the accompanying unaudited Condensed Consolidated Financial Statements and Comparative Consolidated Operating Statistics include the results of operations and cash flows for AirTran from May 2 through December 31, 2011, including the impact of purchase accounting. Periods presented prior to the acquisition date do not include AirTran’s results. However, the Company believes the analysis of specified financial results on a “combined basis” provides more meaningful year-over-year comparability. Financial information presented on a “combined basis” is the sum of the historical financial results of the Company and AirTran for periods prior to the acquisition date, but includes the impact of purchase accounting only as of May 2, 2011. Supplemental financial information presented on a “combined basis” and the accompanying reconciliations have been included in this release.
The Company’s total operating revenues in fourth quarter 2011 increased 31.9 percent to $4.1 billion, compared to $3.1 billion in fourth quarter 2010, and increased 9.3 percent compared to $3.8 billion for combined fourth quarter 2010 total operating revenues. Operating unit revenues increased 7.0 percent from fourth quarter 2010, on a combined basis.
Total fourth quarter 2011 operating expenses were $4.0 billion, compared to $2.9 billion in fourth quarter 2010, and compared to $3.5 billion for combined fourth quarter 2010 total operating expenses. Excluding special items in both periods, fourth quarter 2011 unit costs increased 10.8 percent from fourth quarter 2010 combined unit costs, largely due to a 33.7 percent year-over-year increase in economic fuel costs per gallon. Fourth quarter 2011 economic fuel costs of $3.29 per gallon included $0.12 per gallon in unfavorable cash settlements for fuel derivative contracts; however, fuel derivative contract premiums are down significantly year-over-year, as described below in other income. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.
Excluding fuel and special items in both periods, fourth quarter 2011 unit costs increased 0.5 percent from fourth quarter 2010’s combined 7.72 cents. Based on current cost trends, the Company expects another year-over-year increase in its first quarter 2012 unit costs, compared to first quarter 2011’s combined unit costs of 7.83 cents, excluding fuel and special items in both periods.
Operating income for fourth quarter 2011 was $147 million, compared to $216 million in fourth quarter 2010. Excluding special items in both periods, operating income was $167 million for fourth quarter 2011, compared to $263 million in fourth quarter 2010, and compared to $278 million for combined fourth quarter 2010 operating income.
Other income for the fourth quarter was $108 million compared to $3 million of other expenses for fourth quarter 2010. This $111 million swing primarily resulted from $153 million in gains recognized in fourth quarter 2011, compared to $31 million in gains recognized in fourth quarter 2010. In both periods, these gains primarily resulted from unrealized gains/losses associated with a portion of the Company’s fuel hedging portfolio. Excluding these special items, other losses were primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Fourth quarter 2011 premium costs were $14 million, compared to $44 million in fourth quarter 2010, on a combined basis. First quarter 2012 premium costs are currently estimated to be approximately $6 million, compared to combined premium costs of $36 million in first quarter 2011.
Total operating revenues for the year ended December 31, 2011, increased 29.4 percent to $15.7 billion, while total operating expenses increased 34.6 percent to $15.0 billion, resulting in operating income of $693 million, compared to $988 million for the year ended 2010. Excluding special items in both periods, operating income was $839 million for the year ended December 31, 2011, compared to $1.2 billion in 2010. On a combined basis, total operating revenues for 2011 increased 12.7 percent to $16.6 billion, while total operating expenses increased 17.3 percent to $15.9 billion, resulting in combined operating income for 2011 of $662 million, compared to $1.1 billion for 2010. Excluding special items in both periods, combined operating income for 2011 was $834 million, compared to $1.3 billion for 2010.
The Company’s return on invested capital (before taxes and excluding special items) was approximately seven percent for the year ended December 31, 2011, including AirTran’s results beginning May 2, 2011. Additional information regarding pretax return on invested capital is included in the accompanying reconciliation tables.
Liquidity
Net cash provided by operations for 2011 was $1.4 billion, and capital expenditures were $968 million. As a result, the Company generated over $400 million in free cash flow* in 2011.
On August 5, 2011, the Company’s Board of Directors authorized a share repurchase program to acquire up to $500 million of the Company’s common stock. During 2011, the Company purchased approximately 27.5 million shares of common stock for approximately $225 million. The Company repaid $638 million in debt during 2011, and is scheduled to repay approximately $560 million debt in 2012, including $430 million in first quarter 2012. After this planned first quarter debt payment, the Company will have reduced debt by approximately $1 billion since acquiring AirTran in May 2011. As of January 18 th , the Company had approximately $3.5 billion in cash and short-term investments. In addition, the Company also had a fully available unsecured revolving credit line of $800 million.
2011 Awards and Recognitions
Named the fourth most admired Company in the world in FORTUNE magazine’s 2011 survey of corporate reputations Voted best low-cost carrier in North America by Business Traveler Magazine subscribers Named the 2011 Customer Service Champion by J.D. Powers based on customer feedback regarding service excellence Named Brand of the Year in Harris Poll EquiTrend’s airline category based on equity, customer connection, commitment, brand behavior, brand advocacy, and trust Ranked third in the Top 10 Business Thought Leaders by TLG Communications Received first place for Best Overall Customer Experience in the Keynote Competitive Research Industry Study examining U.S. Air Travel Websites Named Airline of the Year by Express Delivery and Logistics Association, the tenth consecutive year for Southwest Airlines Cargo to receive the recognition; also recognized for Excellence in Web Site and Technology for the second year in a row Southwest Cargo was also named Domestic Carrier of the Year for 2011 by the Airforwarders Association for the second consecutive year and was recently recognized for excellence in Air Cargo World’s annual Air Cargo Excellence (ACE) Survey Recognized by PR News with several awards including the 2011 PR News Corporate Responsibility Awards for Diversity Communications, the Corporate Social Responsibility Award for Best Report, and honorable mention for the Social Corporate Responsibility Award for Corporate/Nonprofit Partnership Named the Greenest Airline by ClimateCounts.org Voted the Customer Satisfaction Leader in Consumer Reports’ list of airline ratings receiving the highest rankings in check-in ease, cabin crew service, cabin cleanliness, baggage handling, and seating comfort Ranked sixth in the 2011 Customer Service Hall of Fame by MSN Money, the only airline to make the top ten Named one of the 100 Top Military Friendly Employers by GI Jobs magazine Recognized for Best Practices in Supplier Diversity by the Dallas Fort Worth Minority Business Council Named the Stevie Award Winner for the Company of the Year-Transportation by The International Business Awards for outstanding performance and Customer Service Received the 2011 Quest for Quality Award for Excellence in Air Cargo from Logistics Management Magazine; ranked first in ontime performance, value, and Customer Service Recognized as one of the top ten safest airlines in the Holistic Safety Rating 2011 by the Air Transport Rating Agency Recognized as one of the 50 best places to work by the Glassdoors.com Employees’ Choice Awards
Southwest will discuss its fourth quarter and full year 2011 results on a conference call at 12:30 p.m. Eastern Time today. A live broadcast of the conference call will also be available at southwest.com/investor_relations.
*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 targets, outlook, and projected results of operations; (ii) the Company’s plans and expectations relating to its acquisition of AirTran, including without limitation anticipated integration timeframes and expected costs, synergies, and other financial results associated with the acquisition; (iii) the Company’s fleet modernization plans and related expectations; and (iv) the Company’s capacity plans. 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) changes in fuel prices, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions; (ii) the Company’s ability to successfully integrate AirTran and realize the expected synergies and other benefits from the acquisition; (iii) the impact of the economy on demand for air travel and the impact of fuel prices, economic conditions, and actions of competitors on the Company’s business decisions, plans, and strategies; (iv) the Company’s dependence on third parties with respect to certain of its initiatives; (v) 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; and (vi) 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, 2010.
SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (1) (in millions, except per share amounts) (unaudited) Three months ended Year ended December 31, December 31, 2011 2010 Percent Change 2011 2010 Percent Change OPERATING REVENUES: Passenger $ 3,860 $ 2,945 31.1 $ 14,735 (2) $ 11,489 28.3 Freight 36 32 12.5 139 125 11.2 Other 212 137 54.7 784 (2) 490 60.0 Total operating revenues 4,108 3,114 31.9 15,658 12,104 29.4 OPERATING EXPENSES: Salaries, wages, and benefits 1,145 955 19.9 4,371 3,704 18.0 Fuel and oil 1,494 940 58.9 5,644 3,620 55.9 Maintenance materials and repairs 239 195 22.6 955 751 27.2 Aircraft rentals 93 45 106.7 308 180 71.1 Landing fees and other rentals 254 201 26.4 959 807 18.8 Depreciation and amortization 192 160 20.0 715 628 13.9 Acquisition and integration 37 7 n.a. 134 8 n.a. Other operating expenses 507 395 28.4 1,879 1,418 32.5 Total operating expenses 3,961 2,898 36.7 14,965 11,116 34.6 OPERATING INCOME 147 216 (31.9) 693 988 (29.9) OTHER EXPENSES (INCOME): Interest expense 51 41 24.4 194 167 16.2 Capitalized interest (4) (4) - (12) (18) (33.3) Interest income (2) (3) (33.3) (10) (12) (16.7) Other (gains) losses, net (153) (31) n.a. 198 106 n.a Total other expenses (income) (108) 3 n.a. 370 243 52.3 INCOME BEFORE INCOME TAXES 255 213 19.7 323 745 (56.6) PROVISION FOR INCOME TAXES 103 82 25.6 145 286 (49.3) NET INCOME $ 152 $ 131 16.0 $ 178 $ 459 (61.2) NET INCOME PER SHARE Basic $ 0.20 $ 0.18 $ 0.23 $ 0.62 Diluted $ 0.20 $ 0.18 $ 0.23 $ 0.61 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 777 747 774 746 Diluted 783 750 775 747 (1) Includes May through December 2011 financial results for AirTran, and the impact of purchase accounting as of May 2, 2011. See Supplemental Combined Statement I for selected financial information on a combined basis, including AirTran for periods prior to the acquisition date. (2) The Company made a fourth quarter 2011 correction to change the allocation of revenues between Passenger and Other from its sale of frequent flyer points associated with its co-branded Chase Visa card. As part of this correction, the Company has reclassified $46 million in revenues for the period from January 2011 through September 2011 from Other revenue to Passenger revenue to conform to the current presentation. Prior periods were immaterial.
SOUTHWEST AIRLINES CO. RECONCILIATION OF REPORTED AMOUNTS TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions, except per share amounts) (unaudited) Three months ended Year ended December 31, December 31, 2011 2010 Percent Change 2011 2010 Percent Change Fuel and oil expense, unhedged $ 1,455 $ 886 $ 5,580 $ 3,296 Add: Fuel hedge losses included in Fuel and oil expense 39 54 64 324 Fuel and oil expense, as reported $ 1,494 $ 940 $ 5,644 $ 3,620 Add (Deduct): Net impact from fuel contracts (2) 17 (40) - (172) Fuel and oil expense, economic $ 1,511 $ 900 67.9 $ 5,644 $ 3,448 63.7 Total operating expenses, as reported $ 3,961 $ 2,898 $ 14,965 $ 11,116 Add (Deduct): Net impact from fuel contracts (2) 17 (40) - (172) Total operating expenses, economic $ 3,978 $ 2,858 $ 14,965 $ 10,944 (Deduct): Charge for Asset impairment, net (3) - - (14) - (Deduct): Charge for Acquisition and integration costs, net (4) (37) (7) (132) (7) Total operating expenses, non-GAAP $ 3,941 $ 2,851 38.2 $ 14,819 $ 10,937 35.5 Operating income, as reported $ 147 $ 216 $ 693 $ 988 Add (Deduct): Net impact from fuel contracts (2) (17) 40 - 172 Operating income, economic $ 130 $ 256 $ 693 $ 1,160 Add: Charge for Asset impairment, net (3) - - 14 - Add: Charge for Acquisition and integration costs, net (4) 37 7 132 7 Operating income, non-GAAP $ 167 $ 263 (36.5) $ 839 $ 1,167 (28.1) Other (gains) losses, net, as reported $ (153) $ (31) $ 198 $ 106 Add (Deduct): Net impact from fuel contracts (2) 168 71 (89) 33 Other losses, net, non-GAAP $ 15 $ 40 (62.5) $ 109 $ 139 (21.6) Income before income taxes, as reported $ 255 $ 213 $ 323 $ 745 Add (Deduct): Net impact from fuel contracts (2) (185) (31) 89 139 $ 70 $ 182 $ 412 $ 884 Add: Charge for Asset impairment, net (3) - - 14 - Add: Charge for Acquisition and integration costs, net (4) 37 7 132 7 Income before income taxes, non-GAAP $ 107 $ 189 (43.4) $ 558 $ 891 (37.4) Net income as reported $ 152 $ 131 $ 178 $ 459 Add (Deduct): Net impact from fuel contracts (2) (185) (31) 89 139 Income tax impact of fuel contracts 78 12 (31) (52) $ 45 $ 112 $ 236 $ 546 Add: Charge for Asset impairment, net (5) - - 9 - Add: Charge for Acquisition and integration costs, net (5) 21 3 85 4 Net income, non-GAAP $ 66 $ 115 (42.6) $ 330 $ 550 (40.0) Net income per share, diluted, as reported $ 0.20 $ 0.18 $ 0.23 $ 0.61 Add (Deduct): Net impact from fuel contracts (0.10) (0.03) 0.07 0.12 $ 0.10 $ 0.15 $ 0.30 $ 0.73 Add: Impact of special items, net (5) (0.01) - 0.13 0.01 Net income per share, diluted, non-GAAP $ 0.09 $ 0.15 (40.0) $ 0.43 $ 0.74 (41.9) (1) Includes May through December 2011 financial results for AirTran, and the impact of purchase accounting as of May 2, 2011. See Supplemental Combined Statement II for a reconciliation of selected combined amounts to non-GAAP items, including AirTran for periods prior to the acquisition date. (2) See Reconciliation of Impact from Fuel Contracts. (3) Net of profitsharing impact. (4) Amounts net of profitsharing impact on charges incurred through March 31, 2011. The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013. The profitsharing impact will be realized in 2014 and beyond. (5) Amounts net of tax and profitsharing impact (see footnote (4) above).
SOUTHWEST AIRLINES CO. RECONCILIATION OF IMPACT FROM FUEL CONTRACTS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited) Three months ended Year ended December 31, December 31, 2011 2010 2011 2010 Fuel and Oil Expense Reclassification between Fuel and Oil and Other (gains) losses, net, associated with current period settled contracts $ 41 $ (14) $ 35 $ (1) Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period * (24) (26) (35) (171) Impact from fuel contracts to Fuel and oil expense 17 (40) - (172) Operating Income Reclassification between Fuel and Oil and Other (gains) losses, net, associated with current period settled contracts $ (41) $ 14 $ (35) $ 1 Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period * 24 26 35 171 Impact from fuel contracts to Operating Income (17) 40 - 172 Other (gains) losses, net Mark-to-market impact from fuel contracts settling in future periods $ 127 $ 24 $ (21) $ 21 Ineffectiveness from fuel hedges settling in future periods 82 33 (33) 11 Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts (41) 14 (35) 1 Impact from fuel contracts to Other (gains) losses, net 168 71 (89) 33 Net Income Mark-to-market impact from fuel contracts settling in future periods $ (127) $ (24) $ 21 $ (21) Ineffectiveness from fuel hedges settling in future periods (82) (33) 33 (11) Other net impact of fuel contracts settling in the current or a prior period (excluding reclassifications) 24 26 35 171 Impact from fuel contracts to Net Income ** (185) (31) 89 139 (1) Includes May through December 2011 financial results for AirTran. * As a result of prior hedge ineffectiveness and/or contracts marked-to-market through the income statement. ** Excludes income tax impact of unrealized items.
SOUTHWEST AIRLINES CO. COMPARATIVE CONSOLIDATED OPERATING STATISTICS (1) (unaudited) Three months ended Year ended December 31, December 31, 2011 2010 Change 2011 2010 Change Revenue passengers carried 27,536,128 22,451,968 22.6 % 103,973,759 88,191,322 17.9 % Enplaned passengers 33,510,920 27,163,960 23.4 % 127,551,012 106,227,521 20.1 % Revenue passenger miles (RPMs) (000s) 25,180,506 20,005,943 25.9 % 97,582,530 78,046,967 25.0 % Available seat miles (ASMs) (000s) 31,297,562 24,788,095 26.3 % 120,578,736 98,437,092 22.5 % Load factor 80.5 % 80.7 % (0.2) pts 80.9 % 79.3 % 1.6 pts Average length of passenger haul (miles) 914 891 2.6 % 939 885 6.1 % Average aircraft stage length (miles) 679 653 4.0 % 679 648 4.8 % Trips flown 343,756 278,137 23.6 % 1,317,977 1,114,451 18.3 % Average passenger fare $ 140.18 $ 131.17 6.9 % $ 141.72 $ 130.27 8.8 % Passenger revenue yield per RPM (cents) 15.33 14.72 4.1 % 15.10 14.72 2.6 % RASM (cents) 13.13 12.56 4.5 % 12.99 12.30 5.6 % PRASM (cents) 12.33 11.88 3.8 % 12.22 11.67 4.7 % CASM (cents) 12.66 11.69 8.3 % 12.41 11.29 9.9 % CASM, excluding fuel (cents) 7.89 7.90 (0.1) % 7.73 7.61 1.6 % CASM, excluding special items (cents) 12.59 11.51 9.4 % 12.29 11.11 10.6 % CASM, excluding fuel and special items (cents) 7.76 7.88 (1.5) % 7.61 7.61 - % Fuel costs per gallon, including fuel tax (unhedged) $ 3.17 $ 2.44 29.9 % $ 3.16 $ 2.29 38.0 % Fuel costs per gallon, including fuel tax $ 3.25 $ 2.59 25.5 % $ 3.19 $ 2.51 27.1 % Fuel costs per gallon, including fuel tax (economic) $ 3.29 $ 2.48 32.7 % $ 3.19 $ 2.39 33.5 % Fuel consumed, in gallons (millions) 458 361 26.9 % 1,764 1,437 22.8 % Active fulltime equivalent Employees 45,392 34,901 30.1 % 45,392 34,901 30.1 % Aircraft in service at period-end 698 548 27.4 % 698 548 27.4 % PRASM (Passenger unit revenue) - Passenger revenue yield per ASM RASM (unit revenue) - Operating revenue yield per ASM CASM (unit costs) - Operating expenses per ASM (1) Includes May through December 2011 operating statistics for AirTran, and the impact of purchase accounting as of May 2, 2011. See Supplemental Combined Statement V for consolidated operating statistics on a combined basis, including AirTran for periods prior to the acquisition date.
SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING FINANCIAL INFORMATION DETAIL OF AIRLINE FOURTH QUARTER 2011 RESULTS AND PURCHASE ACCOUNTING IMPACT (in millions) (unaudited) Three months ended December 31, 2011 Purchase Southwest (1) AirTran (2) Accounting (3) Consolidated OPERATING REVENUES: Passenger $ 3,239 $ 619 $ 2 $ 3,860 Freight 36 - - 36 Other 126 86 - 212 Total operating revenues 3,401 705 2 4,108 OPERATING EXPENSES: Salaries, wages, and benefits 1,003 142 - 1,145 Fuel and oil 1,213 281 - 1,494 Maintenance materials and repairs 175 64 - 239 Aircraft rentals 44 59 (10) 93 Landing fees and other rentals 210 44 - 254 Depreciation and amortization 167 15 10 192 Acquisition and integration 35 2 - 37 Other operating expenses 420 87 - 507 Total operating expenses 3,267 694 - 3,961 OPERATING INCOME $ 134 $ 11 $ 2 $ 147 (1) Results presented for Southwest exclude AirTran results and the impact of purchase accounting. (2) Results presented for AirTran exclude Southwest results and the impact of purchase accounting. (3) Represents the impact of purchase accounting.
SOUTHWEST AIRLINES CO. RECONCILIATION OF SELECTED CONSOLIDATING FINANCIAL INFORMATION TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited) Three months ended December 31, 2011 Southwest AirTran Fuel and oil expense, standalone unhedged $ 1,169 $ 286 Add/(Deduct): Fuel hedge (gains) losses included in Fuel and oil expense 44 (5) Fuel and oil expense, standalone (2) $ 1,213 $ 281 Deduct: Net impact from fuel contracts (3) 17 - Fuel and oil expense, standalone economic $ 1,230 $ 281 Total operating expenses, standalone (2) $ 3,267 $ 694 Deduct: Net impact from fuel contracts (3) 17 - Total operating expenses, standalone economic $ 3,284 $ 694 Deduct: Charge for Acquisition and integration costs (4) (35) (2) Total operating expenses, standalone non-GAAP $ 3,249 $ 692 Operating income, standalone (2) $ 136 $ 11 Add: Net impact from fuel contracts (3) (17) - Operating income, standalone economic $ 119 $ 11 Add: Charge for Acquisition and integration costs (4) 35 2 Operating income, standalone non-GAAP $ 154 $ 13 (1) Selected amounts presented in this schedule are standalone non-GAAP financial results for each of Southwest and AirTran. These standalone results exclude the results of the other airline, and the impact of purchase accounting. (2) See Selected Consolidating Financial Information - Detail of Airline Fourth Quarter 2011 Results and Purchase Accounting Impact for the detail of standalone airline results and the purchase accounting impact. (3) See Reconciliation of Impact from Fuel Contracts. (4) No profitsharing impact. The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013. The profitsharing impact will be realized in 2014 and beyond.
SOUTHWEST AIRLINES CO. RETURN ON INVESTED CAPITAL (1) (in millions) (unaudited) Year Ended Year Ended December 31, 2011 December 31, 2010 Operating Income, as reported $ 693 $ 988 Add: Net impact from fuel contracts - 172 Add: Acquisition and integration costs, net (2) 146 7 Operating Income, non-GAAP $ 839 $ 1,167 Net adjustment for aircraft leases (3) 131 84 Adjustment for fuel hedge accounting (107) (134) Adjusted Operating Income, non-GAAP $ 863 $ 1,117 Average Invested Capital (4) $ 12,372 $ 10,431 Equity adjustment for fuel hedge accounting 203 434 Adjusted Average Invested Capital $ 12,575 $ 10,865 ROIC, pretax 7% 10% (1) Calculation includes the impact of the AirTran acquisition as of May 2, 2011. (2) Net of profitsharing impact on charges incurred through March 31, 2011. The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013. The profitsharing impact will be realized in 2014 and beyond. (3) Net adjustment related to presumption that all aircraft in fleet are owned. (4) Average invested capital represents a five quarter average of debt, net present value of aircraft leases, and equity.
DECEMBER 31, 2011 2010 ASSETS Current assets: Cash and cash equivalents $ 829 $ 1,261 Short-term investments 2,315 2,277 Accounts and other receivables 299 195 Inventories of parts and supplies, at cost 401 243 Deferred income taxes 263 214 Prepaid expenses and other current assets 238 89 Total current assets 4,345 4,279 Property and equipment, at cost: Flight equipment 15,542 13,991 Ground property and equipment 2,423 2,122 Deposits on flight equipment purchase contracts 456 230 18,421 16,343 Less allowance for depreciation and amortization 6,294 5,765 12,127 10,578 Goodwill 970 - Other assets 626 606 $ 18,068 $ 15,463 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,057 $ 739 Accrued liabilities 996 863 Air traffic liability 1,836 1,198 Current maturities of long-term debt 644 505 Total current liabilities 4,533 3,305 Long-term debt less current maturities 3,107 2,875 Deferred income taxes 2,566 2,493 Deferred gains from sale and leaseback of aircraft 75 88 Other noncurrent liabilities 910 465 Stockholders' equity: Common stock 808 808 Capital in excess of par value 1,222 1,183 Retained earnings 5,395 5,399 Accumulated other comprehensive loss (224) (262) Treasury stock, at cost (324) (891) Total stockholders' equity 6,877 6,237 $ 18,068 $ 15,463
SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (1) (in millions) (unaudited) Three months ended Year ended December 31, December 31, 2011 2010 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 152 $ 131 $ 178 $ 459 Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation and amortization 192 160 715 628 Unrealized (gain) loss on fuel derivative instruments (185) (31) 90 139 Deferred income taxes 90 38 123 133 Amortization of deferred gains on sale and leaseback of aircraft (3) (3) (13) (14) Changes in certain assets and liabilities, net of acquisition: Accounts and other receivables 70 39 (26) (26) Other current assets (16) (2) (196) (8) Accounts payable and accrued liabilities (13) 3 253 193 Air traffic liability (222) (226) 262 153 Cash collateral received from (provided to) derivative counterparties 234 115 (195) 265 Other, net 101 45 194 (361) Net cash provided by operating activities 400 269 1,385 1,561 CASH FLOWS FROM INVESTING ACTIVITIES: Payment to acquire AirTran, net of AirTran cash on hand - - (35) - Payments for purchase of property and equipment, net (420) (94) (968) (493) Purchases of short-term investments (574) (1,293) (5,362) (5,624) Proceeds from sales of short-term investments 900 1,367 5,314 4,852 Net cash used in investing activities (94) (20) (1,051) (1,265) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Employee stock plans 4 10 39 55 Proceeds from termination of interest rate derivative instrument - - 76 - Payments of long-term debt and capital lease obligations (447) (31) (557) (155) Payments of convertible debt - - (81) - Payments of cash dividends - - (14) (44) Repurchase of common stock (50) - (225) (13) Other, net - 2 (4) 8 Net cash used in financing activities (493) (19) (766) (149) NET CHANGE IN CASH AND CASH EQUIVALENTS (187) 230 (432) 147 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,016 1,031 1,261 1,114 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 829 $ 1,261 $ 829 $ 1,261 SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS: Fair value of equity consideration given to acquire AirTran $ - $ - $ 523 $ - Fair value of common stock issued for conversion of debt $ - $ - $ 78 $ - (1) Includes the impact of the AirTran acquisition as of May 2, 2011.
SOUTHWEST AIRLINES CO. FUEL DERIVATIVE CONTRACTS AS OF JANUARY 13, 2012 Percent of estimated fuel consumption covered by fuel derivative contracts Average WTI Crude Oil price per barrel First Half 2012 Second Half 2012 $80 to $100 (1) 10-20% range $100 to $125 approx. 50% $125 to $150 approx. 20% Above $150 less than 5% Estimated difference in economic jet fuel price per gallon, above/(below) unhedged market prices, including taxes Average WTI Crude Oil price per barrel 1Q 2012 2Q 2012 Second Half 2012 $75 $0.12 $0.12 $0.15 $90 $0.12 $0.09 $0.11 $99 (2) $0.12 $0.06 $0.06 $115 $0.12 $0.06 ($0.11) $130 $0.11 $0.06 ($0.28) Percent of estimated fuel consumption covered by fuel derivative contracts at Period varying WTI crude-equivalent price levels 2013 over 50% 2014 over 40% 2015 over 10% (1) For first half 2012, the Company's current estimated fuel consumption covered by fuel derivative contracts is minimal, with various fuel derivative contracts at WTI crude-equivalent intervals between $80 and $150 per barrel. (2) Based on the first quarter 2012 average WTI forward curve and market prices as of January 13, 2012, and current estimated fuel consumption covered by fuel derivative contracts, first quarter 2012 economic fuel price per gallon, including taxes, is estimated to be approximately $3.35 per gallon, or $.12 above market prices.
SOUTHWEST AIRLINES CO. 737 FUTURE DELIVERY SCHEDULE AS OF JANUARY 18, 2012 The Boeing Company The Boeing Company 737 NG 737 MAX -700 Firm Orders -800 Firm Orders Options Additional -800s Firm Orders Options Total 2012 28 5 33 2013 41 41 2014 35 4 15 54 2015 36 12 48 2016 31 12 43 2017 15 25 4 44 2018 10 28 15 53 2019 33 33 2020 34 34 2021 34 18 52 2022 30 19 49 2023 23 23 2024 23 23 Through 2027 67 67 127 (a) 73 92 5 (b) 150 (c) 150 597 (a) The Company has flexibility to substitute 737-800s in lieu of 737-700 firm orders (b) New delivery leased aircraft (c) The Company has flexibility to accept MAX 7 or MAX 8 deliveries
SUPPLEMENTAL COMBINED STATEMENT I SOUTHWEST AIRLINES CO. SELECTED COMBINED FINANCIAL INFORMATION (1) (in millions) (unaudited) Three months ended Year ended December 31, December 31, Percent Percent 2011 2010 Change 2011 2010 Change OPERATING REVENUES: Passenger $ 3,860 $ 3,492 10.5 $ 15,547 (2) $ 13,729 13.2 Freight 36 32 12.5 139 125 11.2 Other 212 236 (10.2) 910 (2) 869 4.7 Total operating revenues 4,108 3,760 9.3 16,596 14,723 12.7 OPERATING EXPENSES: Salaries, wages, and benefits 1,145 1,091 4.9 4,564 4,232 7.8 Fuel and oil 1,494 1,156 29.2 6,005 4,447 35.0 Maintenance materials and repairs 239 251 (4.8) 1,043 981 6.3 Aircraft rentals 93 106 (12.3) 389 422 (7.8) Landing fees and other rentals 254 240 5.8 1,013 970 4.4 Depreciation and amortization 192 175 9.7 735 687 7.0 Acquisition and integration 37 16 131.3 160 17 n.a. Other operating expenses 507 501 1.2 2,025 1,827 10.8 Total operating expenses 3,961 3,536 12.0 15,934 13,583 17.3 OPERATING INCOME $ 147 $ 224 (34.4) $ 662 $ 1,140 (41.9) (1) Selected financial information for the three months ended December 31, 2011, is presented on a consolidated basis. All other selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. AirTran's historical financial information included in the combined presentation has been conformed to Southwest's financial statement classification where appropriate. See Note Regarding Use of Non-GAAP Financial Measures. (2) The Company made a fourth quarter 2011 correction to change the allocation of revenues between Passenger and Other from its sale of frequent flyer points associated with its co-branded Chase Visa card. As part of this correction, the Company has reclassified $46 million in revenues for the period from January 2011 through September 2011 from Other revenue to Passenger revenue to conform to the current presentation. Prior periods were immaterial.
SUPPLEMENTAL COMBINED STATEMENT II SOUTHWEST AIRLINES CO. RECONCILIATION OF SELECTED COMBINED AMOUNTS FROM SUPPLEMENTAL COMBINED STATEMENT I TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited) Three months ended Year ended December 31, December 31, Percent Percent 2011 2010 Change 2011 2010 Change Fuel and oil expense, combined unhedged $ 1,455 $ 1,109 $ 5,959 $ 4,146 Add: Fuel hedge losses included in Fuel and oil expense 39 47 46 301 Fuel and oil expense, as presented on Supplemental Combined Statement I $ 1,494 $ 1,156 $ 6,005 $ 4,447 Add (Deduct): Net impact from fuel contracts 17 (40) - (172) Fuel and oil expense, combined economic $ 1,511 $ 1,116 35.4 $ 6,005 $ 4,275 40.5 Total operating expenses, as presented on Supplemental Combined Statement I $ 3,961 $ 3,536 $ 15,934 $ 13,583 Add (Deduct): Net impact from fuel contracts 17 (40) - (172) Total operating expenses, combined economic $ 3,978 $ 3,496 $ 15,934 $ 13,411 Deduct: Charge for Asset impairment, net (2) - - (14) - Deduct: Charge for Acquisition and integration costs, net (3) (37) (14) (158) (16) Total operating expenses, combined non-GAAP $ 3,941 $ 3,482 13.2 $ 15,762 $ 13,395 17.7 Operating income, as presented on Supplemental Combined Statement I $ 147 $ 224 $ 662 $ 1,140 Add (Deduct): Net impact from fuel contracts (17) 40 - 172 Operating income, combined economic $ 130 $ 264 $ 662 $ 1,312 Add: Charge for Asset impairment, net (2) - - 14 - Add: Charge for Acquisition and integration costs, net (3) 37 14 158 16 Operating income, combined non-GAAP $ 167 $ 278 (39.9) $ 834 $ 1,328 (37.2) (1) Selected financial information for the three months ended December 31, 2011, is presented on a consolidated basis. All other selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. AirTran's historical financial information included in the combined presentation has been conformed to Southwest's financial statement classification where appropriate. (2) Net of profitsharing impact. (3) Amounts net of profitsharing impact on charges incurred through March 31, 2011. The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013. The profitsharing impact will be realized in 2014 and beyond.
SUPPLEMENTAL COMBINED STATEMENT III SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING COMBINED 2011 FINANCIAL INFORMATION (1) (in millions) (unaudited) Year ended December 31, 2011 Southwest Airlines Co. (as reported) AirTran (2) Combined OPERATING REVENUES: Passenger $ 14,735 $ 812 $ 15,547 Freight 139 - 139 Other 784 126 910 Total operating revenues 15,658 938 16,596 OPERATING EXPENSES: Salaries, wages, and benefits 4,371 193 4,564 Fuel and oil 5,644 361 6,005 Maintenance materials and repairs 955 88 1,043 Aircraft rentals 308 81 389 Landing fees and other rentals 959 54 1,013 Depreciation and amortization 715 20 735 Acquisition and integration 134 26 160 Other operating expenses 1,879 146 2,025 Total operating expenses 14,965 969 15,934 OPERATING INCOME (LOSS) $ 693 $ (31) $ 662 (1) Selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. See Note Regarding Use of Non-GAAP Financial Measures. (2) Results presented for AirTran, on a standalone basis, include periods prior to the acquisition date, conformed to Southwest's financial statement classification where appropriate.
SUPPLEMENTAL COMBINED STATEMENT IV SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING COMBINED 2010 FINANCIAL INFORMATION (1) (in millions) (unaudited) Three months ended December 31, 2010 Year ended December 31, 2010 (as reported) (as reported) Southwest AirTran Southwest AirTran Airlines Co. (as conformed) Combined Airlines Co. (as conformed) Combined OPERATING REVENUES: Passenger $ 2,945 $ 547 $ 3,492 $ 11,489 $ 2,240 $ 13,729 Freight 32 - 32 125 - 125 Other 137 99 236 490 379 869 Total operating revenues 3,114 646 3,760 12,104 2,619 14,723 OPERATING EXPENSES: Salaries, wages, and benefits 955 135 1,091 3,704 528 4,232 Fuel and oil 940 216 1,156 3,620 827 4,447 Maintenance materials and repairs 195 56 251 751 230 981 Aircraft rentals 45 61 106 180 242 422 Landing fees and other rentals 201 39 240 807 163 970 Depreciation and amortization 160 15 175 628 59 687 Acquisition and integration 7 9 16 8 9 17 Other operating expenses 395 105 501 1,418 409 1,827 Total operating expenses 2,898 636 3,536 11,116 2,467 13,583 OPERATING INCOME $ 216 $ 10 $ 224 $ 988 $ 152 $ 1,140 (1) Selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. Results presented for Southwest and AirTran, on a standalone basis, represent previously reported results. AirTran's historical financial information has been conformed to Southwest's financial statement classification where appropriate. See Note Regarding Use of Non-GAAP Financial Measures.
SUPPLEMENTAL COMBINED STATEMENT V SOUTHWEST AIRLINES CO. COMBINED OPERATING STATISTICS (1) (unaudited) Three months ended Year ended December 31, December 31, 2011 2010 Change 2011 2010 Change Revenue passengers carried 27,536,128 27,330,796 0.8 % 110,151,572 107,605,957 2.4 % Enplaned passengers 33,510,920 33,276,264 0.7 % 135,274,464 130,921,515 3.3 % Revenue passenger miles (RPMs) (000s) 25,180,506 24,713,320 1.9 % 103,864,488 97,597,121 6.4 % Available seat miles (ASMs) (000s) 31,297,562 30,626,416 2.2 % 128,518,201 122,460,579 4.9 % Load factor 80.5 % 80.7 % (0.2) pts 80.8 % 79.7 % 1.1 pts Average length of passenger haul (miles) 914 904 1.1 % 943 907 4.0 % Average aircraft stage length (miles) 679 670 1.3 % 684 668 2.4 % Trips flown 343,756 340,597 0.9 % 1,399,644 1,366,826 2.4 % Average passenger fare $ 140.18 $ 127.76 9.7 % $ 141.14 $ 127.59 10.6 % Passenger revenue yield per RPM (cents) 15.33 14.13 8.5 % 14.97 14.07 6.4 % RASM (cents) 13.13 12.27 7.0 % 12.91 12.02 7.4 % PRASM (cents) 12.33 11.40 8.2 % 12.10 11.21 7.9 % CASM (cents) 12.66 11.54 9.7 % 12.40 11.09 11.8 % CASM, excluding fuel (cents) 7.89 7.77 1.5 % 7.73 7.46 3.6 % CASM, excluding special items (cents) 12.59 11.36 10.8 % 12.26 10.94 12.1 % CASM, excluding fuel and special items (cents) 7.76 7.72 0.5 % 7.59 7.45 1.9 % Fuel costs per gallon, including fuel tax (unhedged) $ 3.17 $ 2.45 29.4 % $ 3.15 $ 2.28 38.2 % Fuel costs per gallon, including fuel tax $ 3.25 $ 2.55 27.5 % $ 3.18 $ 2.45 29.8 % Fuel costs per gallon, including fuel tax (economic) $ 3.29 $ 2.46 33.7 % $ 3.18 $ 2.36 34.7 % Fuel consumed, in gallons (millions) 458 451 1.4 % 1,887 1,810 4.3 % PRASM (Passenger unit revenue) - Passenger revenue yield per ASM RASM (unit revenue) - Operating revenue yield per ASM CASM (unit costs) - Operating expenses per ASM (1) Selected operating statistics for the three months ended December 31, 2011, are presented on a consolidated basis. All other selected operating statistics presented in this schedule on a combined basis include operations for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. AirTran's historical operating statistics included in the combined presentation have been conformed to Southwest's presentation where appropriate.
NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES
The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (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. 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 and accounting associated with 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, 2010, as well as subsequent quarterly filings.
In addition to its “economic” financial measures, as defined above, the Company has also provided other non-GAAP financial measures as a result of items that the Company believes are not indicative of its ongoing operations. These include charges for the three months and year ended December 31, 2011 of $37 million and $134 million, respectively (before the impact of profitsharing and/or taxes) related to expenses associated with the Company’s acquisition and integration of AirTran. These also include a 2011 charge of $17 million (before the impact of profitsharing and/or taxes) for an asset impairment related to the Company’s recent decision not to equip its Classic (737-300/500) aircraft with Required Navigation Performance (RNP) capabilities. 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 other supplemental non-GAAP financial information on a “combined basis.” This supplemental non-GAAP financial information on a “combined basis” includes specified combined financial results of the Company and AirTran for periods prior to May 2, 2011, as if the acquisition had occurred prior to the beginning of the applicable reporting period, but excludes any impact of purchase accounting prior to May 2, 2011. AirTran’s historical financial information included in the combined presentation has been conformed to the Company’s financial statement classification where appropriate. The Company believes that evaluation of its financial performance can be enhanced by a presentation of combined results in order to evaluate its prior, current or future period results on a more meaningful, consistent year-over-year basis.
The Company has also provided free cash flow, which is a non-GAAP financial measure. 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 a commonly used as 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, 2011, the Company generated over $400 million in free cash flow, calculated as operating cash flows of $1.4 billion less capital expenditures of $968 million.
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Yesterday, we formally introduced you to EVOLVE: The New Southwest Interior, an eco-friendly, cost-efficient new look for our cabin with an emphasis on comfort and personal space. This time-lapsed video provides a look at how our Maintenance & Engineering Employees will install the new interior on each of our Boeing 737-700 aircraft. Learn more about Evolve here. And a quick thank you to Terry Riley, who put this video together, and Clint Walker, who took the pictures!
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01-16-2012
01:53 PM
458 Loves
We're barreling through 2012, with plenty of great content to share as part of the top five blog posts of the week for Nuts About Southwest.
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Southwest Airlines is once again headed to Utah for the Sundance Film Festival, where previously unknown movies become award winners, and budding actors and actresses vault to stardom. My first feature film was a little gem entitled "Katie The Carrot Slayer," a parody of "Buffy The Vampire Slayer." In it, I played Pike (you know, the kind that's "not a name, it's a fish"). I was around seven years old, and in each scene, I made motorcycle noises on my Huffy bike. My cousin Katie used carrots instead of wooden stakes. This was also my last feature film (I can't imagine why?). Had the film reached critical mass, I'm certain I'd have a cult following. Sometimes, friends, fifteen minutes of fame is exhausting, so it's a good thing we found Viddy, a great video app that limits each video to fifteen seconds. We want to give you a chance to reach critical mass, and win some plane tickets, too. Our buddies at Viddy have decided to help us with this mission. Here's how to enter to win this contest: 1. Download the free Viddy app in the App Store (iOS only) 2. Create a Viddy account (you can do so on the Viddy website, or within the app). 3. Link your Viddy account with your Twitter account 4. Create your best Southwest-themed viddy 5. Share your viddy with us on Twitter, using the #SWAViddy hashtag Deadline: January 22th Prize: Two Roundtrip Southwest Airlines Plane Tickets Got 15 seconds? Then you have time to enter our Southwest-themed @Viddy contest! Here’s how to enter: cot.ag/A1TboJ #SWAViddy — Southwest Airlines (@SouthwestAir) January 13, 2012 OFFICIAL RULES Southwest Airlines - Southwest Sundance Viddy Challenge 1. To Enter: No purchase or obligation necessary. Contest runs January 13, 2012 from 10:00 am CST – January 22, 2012 at 5:00 pm CST. To enter without purchase or obligation, submit an original Viddy to us @SouthwestAir on Twitter, using the #SWAViddy hashtag. By entering, Entrant grants Sponsor an irrevocable, perpetual, royalty-free, freely transferable license to use the video for all purposes, in any and all media, whether now known or hereafter devised. Entries may not violate any third party rights nor use any third-party intellectual property such as logos, trademarks, copyrighted 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 video 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, sexual orientation. All entries will not be returned. Entries limited to one (1) per person. Any person found using multiple Twitter accounts to enter will be found to be ineligible. Anonymous entries will be considered invalid. You warrant your video will not be sexually explicit, unnecessarily violent or derogatory. It cannot promote drugs, alcohol, or firearms. 2. Selection of Winner: On or about January 22, 2011 at 5:30 pm CST, members of the Southwest Airlines Emerging Media Team will review all eligible entries received and choose a winner. The judges will be judging on the following qualities:∙ Creativity and Originality: 20%∙ Entertaining: 25%∙ Southwest Appeal: 35% - entry should reflect our Culture and Fun-LUVing Attitude.∙ Rules: 20% Read and complied with the official rules. Prizes are guaranteed to be awarded. 3. Prize: One (1) Grand Prizes to consist of two (2) roundtrip tickets on Southwest Airlines (APV for Southwest Airlines tickets is $420) 4. Eligibility: Contest open to all legal US residents, 21 years and older as of January 13, 2012. Employees of Southwest Airlines Co., AirTran Airways, Inc., Viddy, Inc., and their advertising and promotions agencies, and their immediate families (spouse and parents, children and siblings and their spouses) and individuals living in the same households of such employees are ineligible. Void where prohibited or restricted by law. Contest subject to all applicable federal, state, and local laws and regulations. By participating, entrants agree to these official rules and accept decisions of the Sponsor as final. Void in Puerto Rico and where prohibited by law. The promotion is offered in the United States only and shall only be construed and evaluated according to United States law. Do not proceed in this site if you are not located in the United States. 5. To Claim Prize: Potential winner only will be notified by Southwest Airlines via e-mail, and potential winner must provide valid address (No P.O. Boxes). Unclaimed or undeliverable prize will be forfeited and awarded to an alternate winner. Prizes are guaranteed to be awarded. Acceptance of prize constitutes permission (except where prohibited) to use winner's name, hometown and likeness for purposes of advertising, promotion and publicity in any media without additional compensation. Potential winners must execute and return any required affidavit of eligibility and/or liability/publicity release within one (1) day of notification attempt or prize will be forfeited and an alternate winner may be chosen. If a potential winner cannot be contacted, 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. 6. Limitation of Liability: Neither Sponsor, nor their affiliated entities, are responsible for printing or typographical errors in any related materials; stolen, fraudulent, entries or mail; or transactions that are processed or lost due to computer or electronic malfunction. Winners are solely responsible for payment of all federal, state, and local taxes on prize and for any travel or other expenses not specifically mentioned in prize description. Sponsor reserves the right to cancel or modify Contest if fraud or technical failure compromise the integrity of the Contest as determined by Sponsor in its sole discretion. This Contest offer is being made exclusively by Sponsor. Sponsor not responsible for technical, hardware, software or telephone failures of any kind, lost or unavailable network connections or fraud, incomplete, garbled or delayed computer transmission whether caused by Sponsor, user, or by any of the equipment or programming associated with or utilized in the promotion or by any technical or human error which may occur in the process of submissions which may limit a participants ability to participate in this promotion. 7. Winner's List: To request a Winner's Name List, send a self addressed stamped return envelope, after January 22, 2012, to Southwest Airlines Emerging Media. All requests must be received by February 15, 2012. Utah and Washington residents may omit return postage. 8. Sponsor: Southwest Airlines Co., P.O. Box 36611, Dallas, TX. 75235-1611
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DALLAS—Jan. 11, 2012—Southwest Airlines (NYSE: LUV) announced today plans to operate one new daily nonstop flight between Hartsfield-Jackson Atlanta International Airport and Los Angeles International Airport beginning June 10, 2012. This will be in addition to the three daily flights operated by AirTran, Southwest’s wholly-owned subsidiary. The carrier is pleased to add the long-haul route to its map—connecting two destinations popular for both leisure and business. Flights can be booked via www.southwest.com or www.airtran.com. Southwest will begin service to the Atlanta market on Feb. 12, 2012, with 15 daily nonstop flights to five destinations: Baltimore/Washington, Chicago Midway, Denver, Houston Hobby, and Austin, Texas. Additionally, beginning March 10, 2012, the carrier will add daily, roundtrip flights between Atlanta and Las Vegas and Atlanta and Phoenix. With the addition of Atlanta to Southwest’s network next month, Southwest Airlines adds Georgia, the 38th State, to a route map of service to a total of 73 US airports, including Atlanta. As of today, AirTran serves 52 cities nonstop from Hartsfield-Jackson Atlanta International Airport, including near-international routes to Mexico and the Caribbean. About Southwest Airlines Southwest Airlines continues to differentiate itself from other low-fare carriers—offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has recently acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,300 flights a day and has more than 37,000 Employees systemwide. About AirTran Airways AirTran Airways is a wholly owned subsidiary of Southwest Airlines Co. and has been ranked the top airline in the Airline Quality Rating study twice in the past four years. AirTran offers coast-to-coast service on North America's newest all-Boeing fleet. The airline's low-cost, high-quality product also includes assigned seating, and Business Class on every flight. southwest.com
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Southwest Airlines Co. (NYSE: LUV) today reported December 2011 combined traffic results for Southwest Airlines and AirTran. AirTran became a wholly-owned subsidiary of Southwest Airlines Co. ("the Company") on May 2, 2011. For purposes of comparability, the Company is providing combined traffic results for Southwest Airlines and AirTran for periods prior to the acquisition date. See the accompanying tables for combined results. The Company flew 8.2 billion revenue passenger miles (RPMs) in December 2011, which was comparable to the combined RPMs flown in December 2010. Available seat miles (ASMs) increased 1.8 percent to 10.5 billion from the December 2010 combined level of 10.3 billion. The load factor for December 2011 was 78.4 percent, compared to the combined load factor of 80.1 percent in December 2010. For December 2011, passenger revenue per ASM (PRASM) is estimated to have increased in the seven to eight percent range as compared to December 2010's combined PRASM. For the fourth quarter 2011, the Company flew 25.2 billion RPMs, compared to 24.7 billion combined RPMs flown for the same period in 2010, an increase of 1.9 percent. Fourth quarter 2011 ASMs increased 2.2 percent to 31.3 billion, compared to the combined level of 30.6 billion for the same period in 2010. The fourth quarter 2011 load factor was 80.5 percent, compared to the combined load factor of 80.7 percent for the same period in 2010. For the year ended December 31, 2011, the Company flew 103.9 billion combined RPMs, compared to 97.6 billion combined RPMs flown for the same period in 2010, an increase of 6.4 percent. The combined year-to-date ASMs increased 4.9 percent to 128.5 billion, compared to the combined level of 122.5 billion for the same period in 2010. The combined year-to-date load factor was 80.8 percent, compared to the combined load factor of 79.7 percent for the same period in 2010. 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 SOURCE Southwest Airlines Co. For further information: Investor Relations of Southwest Airlines Co., +1-214-792-4415
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01-06-2012
04:52 PM
409 Loves
The Holidays are officially over. I spent time meditating, reflecting, and hanging out with a couple of my favorite family members. Yes, my two favorite donkeys, Emily Elizabeth, and her son. No, I don't remember his name right now. I'm a bad friend (I've always been more partial to Emily Elizabeth, anyway, as we've had a longer-standing friendship). I digress. Some great blog posts to talk about this week, as part of the SWA Stew. Annie Hoelzel, one of our Blog Team Members, roosts in crew scheduling. Is roosts offensive? Well, Annie recently flew the coop for a day to see what life is like on the front lines. She wrote about it, here. Have you traveled through the "Love Field Hot Spot" lately? Have you checked out Majors & Minors yet? The show features Southwest, but more importantly, centers in on some budding young stars. You can catch it Sundays on The Hub! We've got a sneak preview for you, too. Are you a planner? Maybe you're already thinking about New Year's Eve 2012? Well our friends at Dish Trip wrote up a great post on the best places to ring in the New Year. Some of these are surely to be just as fun in a year. Kari Kennedy is a daredevil. She's the bravest person I know. I mean, she used to fly into hurricanes, for cryin' out loud. Her latest feat involved flying up to Minnesota to take place in a polar bear plunge. Brrrr! Our top post this week comes from one of our Customers. We helped Patti get to her newborn granddaughter, and she was grateful. But, Patti, we're grateful to have played such a big role in such a big event in your life! New Year, New Stew. The 34th, to be exact. I counted right this time: blogsouthwest.com/video/swa-stew… #blogsouthwest — Brooks Thomas (@brooksethomas) January 6, 2012
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01-02-2012
06:00 PM
493 Loves
I'm being swallowed by pillows of white, chocolate, and strawberry. So heavy I can't swim, but so tasty I'm swallowing my way to the surface. I make my way to the top of this endless frost to see a sea of color. This milkshake river is not a detriment; it is a panacea. I am in ice cream paradise. Just as I'm about to dive back in, my alarm goes off. It's all a dream. At this point, I become concerned. "I just dreamed about swimming in a Neapolitan Shake I've just consumed," I think to myself. This really happened. Well, not really, but really. There are times in our lives that serve as symbolic, silent motivators that spur pivotal change. Dreams, or wild ideas, that snap you into fixing something that's broken, if not simply doing things a little differently. I could wax poetic about it, but you might color me crazy if I, under this particular circumstance, lament about how such a dream about swimming in a milkeshake has changed my outlook for 2012. And alas, to declare victory about a resolution that's just past its inception would be hexing, and certainly wouldn't demonstrate my resolve. But here I am. Here we are: 2012. A brand new start, and another chance to do it right from the beginning (if not only symbolically). My resolution is routine, without the accompanement of this bizarre dream: I'm giving up fast food in 2012. That's it. Only, that's not just it. Those who know me will point out just how difficult this will be for me. But I'm gonna do it. So if I plead for an extra pack of peanuts on the plane, please oblige me. It's for the good of all mankind. But enough about me. Here's a look at some of our Blog Team Members' New Year's Resolutions: Whitney Bartels I’m usually not very good at keeping (or even making) New Year’s Resolutions. Seems I always overestimate my ability or desire to eat healthier, read more, cut back on spending or whatever it may be. Inevitably, I usually fail in the end, or worse, forget altogether that I’d resolved to live differently. So, this year, I am trying something new (no time like the present, eh?). This year, my resolution is to cultivate gratitude. Allow me to explain. This past October, I traveled on a mission trip to the villages of Honduras. It’s not until you spend a week amongst the world’s most impoverished people that you realize how much we have to be grateful for. Not only this, but I was convicted by the lack of time I spent appreciating that which I have to be grateful for- family, friends, employment, a home, to name a few. So this year, gratitude will be my focus. Here’s how I’m starting: I am taking time to thank those in my life who have allowed me to have opportunities such as traveling to Honduras, and those who have provided necessities for me such as education and employment. Saying thank you may be a small start, but I’m committed to focusing on being grateful this year, and not forgetting to cultivate this habit year-round. Krista Crow My New Year's Resolutions: 1. Remember to always read things twice - Understand what you are reading before you stick your foot in your mouth and say something stupid. 2. Be careful to say exactly what you mean - Your children have outsmarted you before. 3. Think before you speak in the morning - Just because you had a dream about it doesn't mean your husband really said that to you. 4. Be careful what you ask for - That's how you got those mixing bowls for your anniversary. 5. Above all else, be kind - You may be having a hard day but someone else's may be much, much worse. Annie Hoelzel My most immediate goal is to recover from my recent nose surgery so I never have to have another one. I've decided I need to travel more, so I will try to visit at least three new cities this year and one new country. My third resolution is to finish the re-write of my novel, The Stowaway. And my last goal is to finish a half-marathon in under 3 hours and 45 minutes. Brian Lusk I've never been one for resolutions. The term sounds like a promise that a politician might make, so I don't make something I can't keep. However, I do set goals, especially goals for Flashback Fridays. I am on a quest for the following: photos of our first day of operation, photos of the interior of our first gates on the North Concourse, and oh yeah, world peace. Not much I can do about the latter, but hopefully, the former will happen. Christi McNeill I saw someone else say this on Pinterest, so I cannot completely claim it as my own, but it’s a great idea and seems pretty easy for gift-giving, home goods, and accessories: Happy New Year, everyone! Here's to a great 2012!
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Yes, I confess, we skipped 32. Our checks and balances system failed (along with my math skills, or lack thereof). So we'll call this SWA Stew 33 1/3, while paying homage to Naked Gun. Episode 32, meanwhile, will be our proverbial "13th Floor."
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12-16-2011
05:52 PM
684 Loves
I don't have a fire place on which I can roast chestnuts. If Jack Frost were to nip at my nose, I'd probably file a restraining order, or at least get my head checked. I can probably get on board with yule tide, though. Still, I sometimes think I'm steadily on my way to celebrating Festivus, and not for lack of loving Christmas. I'm a holiday fanatic. I love the season. My story begins in Waco, TX ... Christmas Eve, 2006. It was my first Christmas away from home, and I had to work. My parents had mailed me presents, the majority which I vowed to wait until Christmas to open. My heater was on the fritz, so I was freezing. The only sanctuary from my holiday nightmare came in the form of a Christmas channel on iTunes Radio. As I slipped into slumber, Jack Frost nipping at my nose (musically and literally), I thought to myself, "Hey, I can do this. I can do Christmas alone." I awoke at 3:00 a.m. Not a creature was stirring, not even a mouse ... or my iTunes Radio. No, instead, echoing throughout my apartment was the repeated phrase, "Channel not available." It was then that I knew my 2006 Christmas would be lost forever. So when I hear The Christmas Song, which is beautiful, by the way, I think my restraining order is more against that experience than the song itself. But I digress. Here's a glimpse at the Top 5 blog posts of this week: A young up-and-coming artist named Abraham had his first art show at 35,000 feet. Our buddy Jay Baer was lucky enough to be on that flight, and wrote about it. Ever wonder what a day is like at Love Field in Dallas, TX? Stephen M. Keller took the time to find out, in this video set to some rad music from Austin-based Mother Falcon. Our always popular annual 12 Days of LUV contest has returned. Click here to find out how you can join in on the fun (and great prizes). Soles4Soles is an organization we've supported in the past, and so it's very fitting that one of our Flight Attendants also appreciates the nonprofit organization's efforts. This post from the organization's CEO, Wayne Elsey, really made us proud. If it ain't Boeing, we ain't going. And so it's a good thing we've renewed that commitment by making Boeing's first firm order for the 737 MAX (that makes us the launch customer, and first fly the aircraft commercially). Thanks, also, to our friends at Boeing who took the time to recognize our efforts on Nuts About Southwest. Back atcha, Boeing!
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12-14-2011
04:06 PM
1,933 Loves
On a daily basis, we get great stories from Employees and Customers all about what's going on around our system. I take pride in all of the content that gets published on Nuts, and the great team we have. Truly, without a great Culture embraced by great Employees, Nuts About Southwest wouldn't be very interesting at all. The following story originally appeared on Jay Baer's Convince and Convert blog. It embodies the standard by which all our Employees are encouraged to operate. It also has the very convenient side-effect of making my job really easy. It's very satisfying to read about Becky, but also to know Jay's story about her is one of thousands that happen faster than I can keep up. Thank you to Becky for being so great, and Jay, too, for sharing this story. Your kind words go a much greater distance than even our longest flight. Social is About Actions Not Words by Jay Baer I cried a little on a plane last week. It wasn’t due to a delay, an uncomfortable seat, or peanut salt getting in my eye. It was because I saw a shining example of “social business” at work in the real world. Mid-way on a Southwest Airlines flight home from a speaking engagement in Ft. Lauderdale, I looked up from my laptop to find Becky the flight attendant standing at the front of plane with a boy of about 9. “Ladies and gentlemen, I’m sorry to disturb you, but I just thought you should know that we have a celebrity on the plane today. Well, perhaps not a celebrity today, but someday this young man will be a famous artist. Abraham has drawn us a marvelous picture. It’s quite wonderful, and I’ll be displaying it up here so we all can enjoy his great picture.” The kid was absolutely BEAMING with pride and accomplishment and happiness and honor. Abraham returned to his seat. Becky broke out the medical kit, ripped open a band-aid and used it as ersatz tape to post the picture on the wall. A few minutes later, Abraham was back with a second picture. A landscape this time, Becky again made an announcement and grabbed another band-aid. People First When I talk about focusing on BEING social, rather than focusing on DOING social media, this is what I mean. Social business isn’t about tools and technology. It’s about giving Becky the freedom to work off-script. It’s about cultural DNA that values moments of delight. It’s about treating customers as humans, not transactions. It’s about winning hearts and minds one planeload at a time with a personal, shared experience. And it’s about building loyalty and triggering word-of-mouth by doing it well. Will Abraham’s parents ever fly any other airline? Will he? Will I? Or you? For companies that are social at their core, social media just lets the rich get richer. For companies that don’t truly believe in the primacy of the customer, all the Twitter and Facebook and blogs and YouTube in the world won’t change their fortunes. Social is foremost a philosophy, not a set of behaviors. And actions speak louder than words.
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Dallas, TX. Dec. 14, 2011 — When it comes to great Employers, the Employees know best. Glassdoor, a jobs and career community where people share workplace insights, has announced its fourth annual Employees’ Choice Awards, revealing this year’s top 50 “Best Places to Work,” based on surveys collected from U.S.-based employees in 2011. Southwest Airlines has been recognized as one of the top 50 Best Places to Work, a significant achievement, as nearly 150,000 companies are rated by their employees on Glassdoor.
“Glassdoor’s employees’ Choice Awards recognize stand-out companies that have retained the support and commitment of their employees despite the tough economic climate,” said Robert Hohman, co-founder and CEO of Glassdoor. “Through anonymous employee reviews and surveys, Glassdoor offers a unique look into the top U.S. employers and some of the factors that make employees at these companies more satisfied with their jobs. For companies on the list, we typically get positive feedback on the company culture, benefits and open communication practices while we also tend to see competitive pay packages and high opinions of the chief executive.”
Glassdoor’s Employees’ Choice Awards rely solely on the input of employees, who provide constructive feedback on their work environment and senior management throughout the year via an anonymous survey. The survey addresses eight key workplace factors that include work/life balance, career opportunities, communication, compensation and benefits, fairness and respect, employee morale, recognition and feedback, and senior leadership. The ranking of the top 50 list was determined by each company’s overall Glassdoor rating, which is the cumulative average rating from employees who elected to participate in a 20-question survey between Dec. 1, 2010 and Nov. 23, 2011.
“Here at Southwest, every ONE matters. We have the best workforce in the aviation industry and we are not afraid to show it. For the past 40 years, our Employees have surpassed our goals and have made Southwest Airlines the largest and the best domestic carrier, “said Jeff Lamb, Southwest’s Executive Vice President, Chief People and Administration Officer. “At Southwest, our Employees are filled with passion; we work hard and we learn from our mistakes. This makes us a stronger as a Company and the best place to work.”
The complete list of the Glassdoor 2012 Top 50 Best Places to Work can be found here: http://www.glassdoor.com/Best-Places-to-Work-LST_KQ0,19.htm. A complete copy of the Glassdoor survey along with additional information about the Best Places to Work methodology may be requested via email to: BestPlacestoWork (at) Glassdoor (dot) com. To receive regular updates from Glassdoor, visit the blog (http://www.glassdoor.com/blog/) and follow the career community on Twitter, Facebook, and LinkedIn .
About Glassdoor
Glassdoor is a free and anonymous jobs and career community offering an inside look at companies and access to millions of job listings. Glassdoor helps employees, job seekers, employers and recruiters find and share detailed information on nearly 150,000 companies, such as Facebook, Google, Chevron, J.Crew, NIKE and PricewaterhouseCoopers. This proprietary user-generated content includes salary data, company reviews, interview questions and reviews, office photos and CEO approval ratings. Glassdoor was founded in 2007 and launched its website in 2008. Headquartered in Sausalito, Calif. Glassdoor has raised $22.2 million from its founders, Benchmark Capital, Sutter Hill Ventures and Battery Ventures. More information about Glassdoor can be found on its blog, and by following the company on Twitter, Facebook and LinkedIn.
About Southwest Airlines
In its 40th year of service, Southwest Airlines continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 37,000 Employees systemwide.
Earlier this year, Southwest Airlines completed the acquisition of AirTran Holdings, Inc., and now operates AirTran Airways as a wholly-owned subsidiary. AirTran serves 63 cities in 30 states and currently operates more than 790 flights a day. Additionally, AirTran serves seven international destinations in the Caribbean and Mexico. AirTran employs more than 8,500 Employees across the country.
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150 Firm Orders for the Fuel-Efficient Aircraft Complements Southwest's Fleet Modernization Plan; First Deliveries of New 737 MAX Aircraft Scheduled for 2017 DALLAS, Dec. 13, 2011 – Southwest Airlines is once again leading the industry by teaming up with its longtime partner to become the launch Customer of Boeing's new 737 MAX aircraft. Southwest is the first Customer to place firm orders for the new, more fuel-efficient 737 MAX, and the Company also will become the first airline to accept delivery of the new aircraft in 2017. As the launch Customer of the 737 MAX, Southwest extends its legacy with Boeing as the 737 launch Customer for the -300, -500, and -700. The 737 MAX is the new-engine variant of the world's best-selling airplane, building on the strengths of today's Next-Generation 737 (737NG) technology, and is powered by CFM International LEAP-1B engines. For more information, visit: www.swamedia.com. In its ongoing effort to improve fuel efficiency while extending its record of unparalleled Customer Service and profitability in the airline industry, Southwest has placed a firm order for 150 Boeing 737 MAX airplanes, with the first delivery scheduled in 2017. The Company also expanded its current order book with Boeing for 58 additional 737NG aircraft. These new orders join an existing firm order book of 142, bringing Southwest's total firm orders with the Boeing Company to 350 for 2012 through 2022, which are intended to predominately serve as replacement aircraft as the airline continues the modernization of its fleet. "Today's environment demands that we become more fuel-efficient and environmentally friendly, and as the launch Customer of the Boeing 737 MAX, we have accomplished both," said Gary Kelly, Southwest Airlines Chairman, President, and CEO. "We are teaming up with our friends from Boeing to lead the industry in a way that makes both our Shareholders and our Customers proud to associate with Southwest Airlines. Today's announcement will allow us to maintain our position as a low-cost provider in the years ahead." "We are enthusiastic about our fleet modernization plans, and especially about becoming the launch Customer for the Boeing 737 MAX," said Mike Van de Ven, Southwest Airlines Executive Vice President and Chief Operating Officer. "The much improved fuel efficiency of the 737 MAX will enable us to improve our fuel costs, as well as our environmental performance, with great comfort and reliability to offer to our Customers." Van de Ven continued, "Overall, we expect the superior economics of our fleet modernization plan to meet our 15 percent pretax return requirement and provide substantial flexibility to manage our growth in a variety of economic conditions over the next decade. Additionally, these new aircraft will enhance the Customer Service offering with the new Sky Interior." The 737 MAX with LEAP-1B engines will reduce fuel burn and CO2 emissions by an additional 10-11 percent over today's most fuel-efficient single-aisle airplane. It will have the lowest operating costs in the single-aisle segment with a seven percent advantage over its competition. The 58 new 737NG firm orders include the exercise of 25 previously existing options. The Company has substituted -800s for all -700 737NG deliveries scheduled for 2012 and 2013 in addition to a portion of its 2014 deliveries. For the 737 MAX order, the Company has flexibility to accept MAX 7 or MAX 8 deliveries. The revised order book also includes 78 737NG options and 150 737 MAX options, bringing
total option positions from 2014 through 2027 to 242. Additional information regarding the Company's 737 future delivery schedule is included as an accompanying table. Press Conference Southwest Airlines will present the key benefits of today's announcement at a live press conference today from Southwest Airlines Headquarters in Dallas, Texas, at 9 a.m. Central Standard time (10 a.m. EST). A live broadcast and replay of the conference will be available at http://www.videonewswire.com/event.asp?id=84090. Presentation materials from the press conference will be made available at www.southwest.investorroom.com and www.swamedia.com. About Southwest In its 40th year of service, Southwest Airlines continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 37,000 Employees systemwide. Earlier this year, Southwest Airlines completed the acquisition of AirTran Holdings, Inc., and now operates AirTran Airways as a wholly-owned subsidiary. AirTran serves 63 cities in 30 states and currently operates more than 790 flights a day. Additionally, AirTran serves seven international destinations in the Caribbean and Mexico. AirTran employs more than 8,500 Employees across the country. 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 and Section 21E of the Securities Exchange Act of 1934. Specific forward-looking statements relate to Southwest's fleet plans and expectations, including without limitation (i) the anticipated timing of the introduction of the Boeing 737 MAX aircraft to Southwest's fleet, (ii) the anticipated benefits of the Boeing 737 MAX and Next-Generation 737 aircraft to Southwest and its Customers, and (iii) the anticipated environmental benefits of the Boeing 737 MAX. These forward- looking statements are based on Southwest'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) Southwest's dependence on Boeing, as well as Southwest's and Boeing's dependence on third-party providers, to perform in accordance with expectations in connection with the manufacture and delivery of aircraft; (ii) the impact of fuel prices, economic conditions, consumer demand, and other factors on the Company's overall business plan and strategies; (iii) the impact of governmental regulations on the airline industry and related industries, and (iv) 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, 2010. www.southwest.com
(a) The Company has flexibility to substitute 737-800s in lieu of 737-700 firm orders (b) The Company has flexibility to accept MAX 7 or MAX 8 deliveries (c) New delivery leased aircraft CONTACT: Southwest Communications, +1-214-792-4847
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Dave Thomas once said, “It all comes back to the basics. Serve customers the best tasting-food at a good value in a clean comfortable restaurant, and they’ll keep coming back.” Well now there are even more reasons to return to Wendy’s® than their signature square-shaped burgers, natural cut fries, and Frostys - a chance to win amazing prizes and a year of travel on Southwest Airlines. Two’s the Reason to be Jolly this Holiday Season! Visit a local Wendy’s and receive a code to enter for two chances to win when you buy a W Combo at Wendy’s®. Log on to www.twosthereason.com, enter your code, and you could win a prize for you and one of your friends. Prizes include tablets, 3DHD TVs, gaming stations, MP3 players, W Combos for a year and a year of travel on Southwest Airlines. If you can’t make it in to Wendy’s, visit www.facebook.com/wendys, become a fan and receive a code for your chance to win. Good luck and Happy Holidays!
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12-09-2011
12:49 PM
1,622 Loves
At the end of this video, I handed Michael, our current video intern, a present on behalf of his Secret Santa. Since it's Friday, when we reveal ourselves, I'm taking the liberty of coming clean on the blog: Dear Michael, I'm your Secret Santa. I know you didn't ask for donuts, but I gave them to you anyway. The look on your face was one of perplexity, and for good reason. Like when I was a youngster and asked for a Sega Genesis, but was instead given a toy train. Know this, though, Michael: I didn't realize it at the time, but that train had legs. Up until college, we set it up every Christmas. I'm currently rocking a new video game system. So you see, Michael, the donuts may have a lasting affect on you. And you've had a lasting affect on us. I know we're entering your last week as an intern, and you have a big road trip ahead of you. I learned this from your Secret Santa form. So, I've decided to provide for you a care package to get you through the most dire points of your voyage, followed by a celebratory treat for the end (Michael's of age, everyone). If this doesn't please you, I'm a colossal failure. Sincerely, Brooks I think he'll like it. Onward, though, to our top five: Think you and your sweetheart got a good thing going? Then obviously you haven't met Harold & Edna. Read about their recent trip to Vegas to celebrate eighty years of holy matrimony! Do you have a Southwest story? Want to share it with us? Read this post to find out how you can do so, and potentially make it on television! Two World War II veterans were honored on the SWA Stew. One here, and another here. By the way, are you wearing red every Friday? Finally, Resident Historian Brian Lusk has a look at the Interchange Era.
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DALLAS, TEXAS – December 6, 2011 – Southwest Airlines Co. (NYSE: LUV) today reported November 2011 combined traffic results for Southwest Airlines and AirTran. AirTran became a wholly-owned subsidiary of Southwest Airlines Co. (“the Company”) on May 2, 2011. For purposes of comparability, the Company is providing combined traffic results for Southwest Airlines and AirTran for periods prior to the acquisition date. See the accompanying tables for combined results. The Company flew 8.3 billion revenue passenger miles (RPMs) in November 2011, compared to 8.1 billion combined RPMs flown in November 2010, an increase of 2.5 percent. Available seat miles (ASMs) were 10.1 billion, an increase of 0.7 percent from November 2010 combined ASMs. The load factor for November 2011 was 81.6 percent, compared to the combined load factor of 80.2 percent in November 2010. For November 2011, passenger revenue per ASM (PRASM) is estimated to have increased approximately nine percent as compared to November 2010’s combined PRASM. For the first eleven months of 2011, the Company flew 95.7 billion combined RPMs, compared to 89.4 billion combined RPMs flown for the same period in 2010, an increase of 7.0 percent. The combined year-to-date ASMs increased 5.2 percent to 118.1 billion in 2011, compared to the combined level of 112.2 billion for the same period in 2010. The combined year-to-date load factor was 81.0 percent, compared to the combined load factor of 79.7 percent for the same period in 2010. This release, as well as past news releases about Southwest Airlines Co., is available online at southwest.com.
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