- Initial Schedule of Fifteen Daily Departures Begins Feb. 12, 2012 - Fares starting as low as $79 one-way - Southwest, AirTran Take First Steps to Blend Frequent Flyer Programs ATLANTA, Aug. 22, 2011 /PRNewswire via COMTEX/ -- Southwest Airlines (NYSE: LUV) is launching new service to Atlanta (ATL) on Feb. 12, 2012, bringing greatly reduced fares and new flexibility for both business and leisure Customers. With initial fares for nonstop travel as low as $79 one-way, the first Southwest flights to and from Georgia will also mark a significant and eagerly anticipated milestone in the carrier's acquisition of AirTran Airways. Southwest President, Chairman, and CEO Gary Kelly revealed details of Southwest's firstAtlanta schedule during a luncheon with the Metro Atlanta Chamber of Commerce. "We're bringing especially great value to those of you who travel last-minute," Kelly told the audience of business leaders. "Here in Atlanta, our fully refundable, walk-up fares will be, on average, more than 30 percent lower than anything currently in these markets. And we are bringing the flexibility Southwest Customers already enjoy in other cities because we don't charge a $150 fee simply to change your plans." From Atlanta, Southwest initially will offer 15 nonstop departures each day to five destinations: Baltimore/Washington (BWI), Chicago Midway (MDW), Denver (DEN), Houston Hobby (HOU), and Austin, Texas (AUS)--a route not previously served by AirTran Airways. NEW ATLANTA SERVICE BEGINNING FEB. 12, 2012 (open today for purchase on southwest.com): $99 each way between Atlanta and Austin - two daily roundtrips $79 each way between Atlanta and Baltimore/Washington- four daily roundtrips $99 each way between Atlanta and Denver - two daily roundtrips $99 each way between Atlanta and Houston Hobby - three daily roundtrips $79 each way between Atlanta and Chicago Midway - four daily roundtrips "We've said all along that this deal to bring AirTran's People, planes and places into the Southwest family is about offering more--more destinations and spreading more low fares farther, through the strength of our network." The nonstop flights make possible additional direct or connecting service between Atlantaand 48 destinations on Southwest Airlines. The inaugural schedule also brings, for the first time, one-stop/no change-of-plane service between Atlanta and Dallas' Love Field on Southwest Airlines. In a first step toward blending frequent flyer programs, Kelly announced top-tier members of both carriers' frequent flyer loyalty programs-- A-List Members of Southwest's All New Rapid Rewards and elite A+ Members of AirTran's A+ Rewards--will enjoy some, limited reciprocal benefits when flying on either carrier beginning today. A-List benefits include extra Rapid Reward points, Priority Boarding, access to priority security lanes, and more. On the flip side, Southwest A-List and A-List Preferred Members booking on AirTran will get Free Business Class upgrades, no baggage fees, and all other benefits that AirTran's elite Members enjoy. Visit southwest.com/travelexperience to learn more about Southwest's legendary Customer Service with No Hidden Fees. Southwest doesn't charge a fee to check a first or second bag; there's no charge for onboard sodas or snacks; there's never a fee to speak with one of our Agents on the phone; and Southwest does not charge a fee to change a reservation. 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 and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. With the addition of Atlanta, 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/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 35,000 Employees. Introductory Fare Rules Southwest Airlines sale fares are available for purchase Aug. 22, 2011, through Sep. 5, 2011,11:59 p.m. PDT, and travel must take place between Feb. 12, 2012, and March 9, 2012. Fares are available only on southwest.com or swabiz.com. Fares do not include a federal excise tax of $3.70 per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 and U.S. government-imposed September 11th Security Fee of up to $5.00 one-way. Seats are limited. Fares may vary by destination, flight, and day of week, and won't be available on some flights that operate during very busy travel times and holiday periods. Fares are available for one-way travel. Fares may be combined with other 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 the purchase of future travel on Southwest Airlines. Fares are not available through the Group Desk. Any change in the itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only. southwest.com
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DALLAS and ATLANTA, Aug. 22, 2011 /PRNewswire via COMTEX/ -- Southwest Airlines (NYSE: LUV) today announced that on Aug. 17, 2011, its Board of Directors appointed J. Veronica Biggins to the Board. For a photo of Biggins, please click here:http://swa.wieck.com/photos/439d99f6-f4a1-a972-f360-f8004e4eb42c?search=biggins. Biggins was a member of the Board of Directors for AirTran Holdings, Inc., parent company of AirTran Airways, which was acquired by Southwest Airlines in a deal that was completed inMay 2011. Biggins is a Managing Director in the Atlanta office of Diversified Search, LLC, a privately-held executive and board search firm focused on helping corporations build effective leadership teams. Biggins joined Diversified Search (formerly Hodge Partners) in 2007. Previously, she was Senior Partner and Head of Diversity Practice at Heidrick & Struggles in Atlanta, where she created the firm's first diversity practice, trained internal consultants on what diversity means, and advised clients on how to embed an effective diversity practice within their businesses. "We are honored to have Veronica join the Board, and we know that she will be a great addition to the comprehensive Leadership that currently sits on the Southwest Board of Directors," said Gary Kelly, Chairman of the Board, President, and Chief Executive Officer for Southwest Airlines. "Her ties to the Atlanta community and her previous experience as a member of the Board of Directors for AirTran Holdings, Inc., will be a tremendous asset to our Team. Her background and experience in human resources, recruitment, and diversity also will serve us well." Biggins also served as Assistant to the President of the United States and Director of Presidential Personnel under President Bill Clinton. In that capacity, she was responsible for directing the recruitment, nomination, and appointment process for all political appointees within the federal government, including the placement of agency heads, ambassadors and members of presidential boards and commissions. Biggins earned a Bachelor of Arts degree from Spelman College and a Masters of Education degree from Georgia State University. She also completed Harvard University's Advanced Leadership Initiative class in 2010. Her background includes 20 years' experience with NationsBank (now Bank of America) and its predecessor, The Citizens and Southern National Bank. Prior to joining the White House, she was one of the highest ranking females in the banking industry, serving as Executive Vice President for Corporate Community Relations. She currently serves on the Board of Directors for Avnet, Inc., and Zep Inc., and has formerly served on several boards, including AirTran Holdings, NDC Health, Cameron Ashley,Morrison's Corporation, and the Atlanta Life Insurance Company. In the Atlanta community, she serves as a Board member for the East Lake Foundation; on the Atlanta Advisory Board for the Savannah College of Art and Design; on the Board of Trustees for the Woodruff Arts Center; and as a member of the Atlanta Rotary Club. Biggins served as Vice Chairman of the U.S. Delegation to the United Nations Fourth World Conference on Women in Beijing. She's been recognized by many organizations for her leadership, including being named to Ebony's List of 100 Best and Brightest Black Women and Georgia Trend magazine's list of the 100 most influential Georgians. She also received a Points of Light Award from President George W. Bush for her leadership of the Czech Slovak American Enterprise Fund. Biggins will initially serve for a term lasting until Southwest's next Annual Meeting of Shareholders. Other members of Southwest's Board of Directors are: David W. Biegler;William H. Cunningham, Ph.D.; John G. Denison; Gary C. Kelly; Nancy B. Loeffler; John T. Montford; Douglas H. Brooks, Thomas M. Nealon, and Daniel D. Villanueva. About Southwest Airlines Co. 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 35,000 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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08-19-2011
06:35 PM
506 Loves
This 19th Episode of the SWA Stew is J.P.-less. But we can still chastise him, right? Right. You'll notice, though, that this episode of the Stew is devoid of any really loud laughter. At first, I thought this would be a good thing. I quickly realized, "No, Brooks, now nobody will laugh, because you're just not that funny." C'est la vie. This episode of the Stew recaps the final set of winners in the Showing LUV to Our Communities contest. Princess also gets another shout-out. New to the list this week are our Communication Interns' SWAmazing story of their internships, the big Snow Cone Tour, and LUV at 30,000 feet. Link LUV: SWAmazing Summer Meeting my Dad Stay Cool, Dudes and Dudettes Final 10 Winners of Showing LUV to Our Communities Contest LUV at 30,000 Feet
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08-18-2011
09:06 AM
323 Loves
Thanks for all the awesome words, everyone. This story wouldn't be possible without having such great Customers. The fact Southwest has had an impact on Lovine (and Kat) so great that he included us in such a big moment in the couple's life is really breathtaking.
And what are the odds of having a photographer sitting across from him in the back?!
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08-12-2011
03:17 PM
640 Loves
A phony lapse in judgment keeps me on my toes. We didn't really do it live, okay? This week, we're talking about schedule openings, part two of a Blog Teamer's amazing story about Family, conserving energy in this ridiculous heat, an Intern's heartwarming reunion with her biological Dad, and the latest set of ten winners in the Showing LUV to our Communities contest! We also bid a heartfelt farewell to J.P., the Intern we never wanted (just kidding. We'll miss you, J.P.). Link LUV: Schedules Extended to March 9, 2012 We Are Family Part II Going Green: Energy Conservation During Record-Breaking Heat Meeting My Dad Southwest Airlines Announces Third 10 Winners for Showing LUV to Our Communities Contest
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After moving back to Dallas, I had a brief stint as a mascot. I was the now-defunct Frisco Thunder's very own Thundercat. Sweat-stung and blinded by crazy lighting, I would navigate the crowd on intuition alone, knowing I had a duty to the audience. Hurling myself over railings, sliding head-first toward the field goal post--I did it all. A cumbersome servitude? Yes. The highest honor? Undoubtedly. Or so I thought. Fast forward some four years, and there I sat, in the back room of our Southwest Lounge at Oshkosh's EAA AirVenture. For days, we had (unsuccessfully) attempted to coerce volunteers and Coworkers to dress up in the Spirit Junior costume. Only for a brief while did we manage to get one of our interns, Jacob, to wear the plane and become T.J. LUV. But did he really become T.J. LUV? I digress. Clearly, this young Jedi was unaware the dedication required to truly become one with Spirit Junior. T.J. LUV requires complete and total immersion. Recalling my earlier mascot days, I knew I had what it took. I slipped my arms through Spirit Junior's weighty straps. The costume washed over me. I was T.J. LUV. Armed with V.I.P. tickets, off I went. It all culminated into the following video...
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08-05-2011
04:33 PM
724 Loves
Okay, I think I am refreshed from Oshkosh, where there were plenty of shenanigans. This episode of the 'Stew features our usually suspects of late: more DishTrip, schedule extensions, and the second set of Showing LUV to Our Communities winners. It also includes the STL stop of our Conservation in Action Tour, and our lovely One Report. Uh, yes, and after a year of working here, I was finally coerced into dressing up like Spirit Jr. Don't worry, there's more where that came from. The things we do for this great Company... Link LUV: Conservation in Action: A Little Time in the 'Lou Southwest Announces Second 10 Winners for Showing LUV to Our Communities 1,600 Ticket Giveaway 2010 One Report: Our Current Performance Celebrate Southwest's Big 4-0 and Win Your Own Dish Trip to San Antonio! Schedules Extend to March 9, 2012
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DALLAS, TEXAS – August 5, 2011 – Southwest Airlines Co. (NYSE: LUV) today reported July 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 10.0 billion revenue passenger miles (RPMs) in July 2011, compared to 9.5 billion combined RPMs flown in July 2010, an increase of 5.9 percent. Available seat miles (ASMs) increased 6.6 percent to 11.8 billion from the July 2010 combined level of 11.1 billion. The load factor for July 2011 was 85.1 percent, compared to the combined load factor of 85.6 percent in July 2010. For July 2011, passenger revenue per ASM (PRASM) is estimated to have increased approximately one percent as compared to July 2010’s combined PRASM.
For the first seven months of 2011, the Company flew 61.4 billion combined RPMs, compared
to 56.4 billion combined RPMs flown for the same period in 2010, an increase of 8.8 percent. The combined year-to-date ASMs increased 6.5 percent to 75.7 billion in 2011, compared to the combined level of 71.1 billion for the same period in 2010. The combined year-to-date load factor was 81.1 percent, compared to the combined load factor of 79.4 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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DALLAS, TEXAS – August 4, 2011 – Southwest Airlines Co. (NYSE:LUV) (the “Company”) today reported second quarter 2011 net income of $161 million, or $.21 per diluted share, compared to net income of $112 million, or $.15 per diluted share, for second quarter 2010. Operating income was $207 million for second quarter 2011, compared to $363 million for second quarter 2010. The 2011 results include the results of AirTran since the May 2, 2011, acquisition date. Prior periods do not include AirTran’s results.
Both periods’ results included special items related to non-cash, mark-to-market, and other items associated with a portion of the Company’s fuel hedge portfolio. In addition, second quarter 2011 results included approximately $40 million (net of taxes) in charges primarily related to financial advisory fees and severance payments in association with the Company’s acquisition and integration of AirTran. Excluding special items in both periods, second quarter 2011 net income was $121 million, or $.15 per diluted share, compared to $216 million, or $.29 per diluted share, for second quarter 2010. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “With energy prices surging, and Brent crude oil near $120 a barrel, significant revenue growth was critical to achieve second quarter 2011 operating income of $276 million and net income of $121 million (both excluding special items). Record load factors and record passenger yields resulted in a record $3.9 billion in passenger revenues. Still, with our economic fuel costs rising 72 percent, our year-over-year revenue growth could not keep pace. However, total operating revenues of $4.1 billion, another record, is a notable accomplishment.
“Southwest Airlines celebrated a momentous milestone this quarter with the closing of our AirTran acquisition, and it couldn’t have come at a more critical time with volatile fuel prices and economic uncertainty. We have the opportunity to optimize AirTran’s flight schedule to boost its profitability. Ultimately, integrating their network into Southwest’s provides even more substantial opportunities to boost combined revenues and profits. The acquisition has the dual benefit of positioning the Company for future growth in an improving economic environment or cushioning it against worsening economic conditions. As we undertake the multi-year effort to successfully integrate AirTran into Southwest Airlines, we will continue to focus on our safe, efficient, and reliable operations; strong Culture; and outstanding Customer Service.”
AirTran became a wholly-owned subsidiary of the Company on May 2, 2011. Second quarter 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, 2011 through June 30, 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 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 on a “combined basis” and accompanying reconciliations have been included in this release and at southwest.com/investor_relations.
Financial Results
The Company’s total operating revenues for second quarter 2011 increased 30.6 percent to $4.1 billion, compared to $3.2 billion for second quarter 2010. Operating unit revenues increased 5.7 percent compared to second quarter 2010. On a combined basis, operating unit revenues increased 7.4 percent from second quarter 2010. Based on bookings and revenue trends thus far, the Company expects third quarter 2011 unit revenues to improve from third quarter 2010’s combined unit revenue performance of 12.13 cents.
Total second quarter 2011 operating expenses were $3.9 billion, compared to $2.8 billion in second quarter 2010. Excluding special items, second quarter 2011 unit costs increased 13.5 percent from second quarter 2010, mostly due to a 38.4 percent year-over-year increase in economic fuel costs per gallon. Second quarter 2011 economic fuel costs of $3.28 per gallon included $.03 per gallon in favorable cash settlements for fuel derivative contracts. Based on the Company’s third quarter 2011 fuel hedge position and market prices (as of August 1 st ), third quarter 2011 economic fuel costs, including fuel taxes, are estimated to be approximately $3.30 per gallon. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.
Excluding fuel and special items in both periods, second quarter 2011 unit costs increased 1.4 percent from second quarter 2010. On a combined basis, nonfuel unit costs, excluding special items, increased 3.1 percent from second quarter last year. Based on current cost trends, the Company expects its third quarter 2011 unit costs, excluding fuel and special items, to increase slightly from third quarter 2010’s combined unit costs, excluding fuel and special items, of 7.27 cents.
Operating income for second quarter 2011 was $207 million, compared to $363 million in second quarter 2010. Excluding special items in both periods, operating income was $276 million for second quarter 2011 compared to $414 million for second quarter 2010. On a combined basis, second quarter 2011 operating income, excluding special items, was $295 million, compared to $488 million in second quarter 2010.
The second quarter year-over-year $259 million swing in “Other (gains) losses, net” primarily resulted from unrealized gains/losses associated with the Company’s fuel hedging program. Excluding these special items, “Other losses, net” primarily consisted of premium costs associated with the Company’s fuel derivative contracts of $26 million in second quarter 2011, compared to $30 million in second quarter 2010. On a combined basis, second quarter 2011 “Other gains” was $125 million compared to “Other losses” of $187 million in second quarter 2010. Excluding special items and on a combined basis, “Other losses, net” primarily consisted of premium costs totaling $28 million in second quarter 2011, compared to $37 million in second quarter 2010.
Total operating revenues for the six months ended June 30, 2011 increased 24.8 percent to $7.2 billion, while total operating expenses increased 28.5 percent to $6.9 billion, resulting in operating income in first half 2011 of $321 million, versus $417 million in first half 2010. Excluding special items in both periods, operating income was $387 million for first half 2011, compared to $516 million for the same period last year. On a combined basis, total operating revenues for the six months ended June 30, 2011 increased 15.1 percent to $8.2 billion, while total operating expenses increased 19.5 percent to $7.9 billion, resulting in combined operating income in first half 2011 of $290 million, versus $503 million in first half 2010 . Excluding special items in both periods, combined operating income for first half 2011 was $382 million, compared to $602 million for the same period last year.
Net income for first half 2011 was $166 million, or $.22 per diluted share, compared to $123 million, or $.17 per diluted share, for the same period last year. Excluding special items, net income for first half 2011 was $142 million, or $.19 per diluted share, compared to $239 million, or $.32 per diluted share, for the same period last year.
The Company’s return on invested capital (before taxes and excluding special items) was approximately nine percent for the twelve months ended June 30, 2011, including AirTran’s results beginning May 2, 2011. Additional information regarding pretax return on invested capital is included in the accompanying reconciliation tables.
AirTran Acquisition
“Of course, the highlight of the quarter was welcoming AirTran to the Southwest family on May 2 nd ,” stated Kelly. “Our integration efforts are well underway, and I am pleased with our progress thus far. We implemented a new leadership structure for the combined companies following the acquisition, and Employee communication channels were enhanced to ensure Employees of both airlines remain well-informed of the integration plans and progress. We have streamlined a number of corporate functions and renegotiated many contracts, which will produce approximately $50 million (before taxes and profitsharing) in annualized cost synergies.
“Our labor workgroups are making good progress on seniority list integration discussions. The Pilot negotiating committees of the Southwest Airlines Pilots’ Association (SWAPA) and the Air Line Pilots Association (ALPA) have agreed on a framework for seniority list integration. The agreement has been unanimously approved by the SWAPA Board. If approved by the ALPA Board, the agreement will go to the memberships for ratification. I commend our Pilots for their dedication and leadership to have already accomplished this integral step towards a successful integration.
“Although AirTran is expected to operate under the AirTran brand for another couple of years, stations with a dual airline presence are being transitioned to locate ticket counters and gates in closer proximity. We will begin transitioning aircraft, airports, and Employees next year. We expect to receive our single operating certificate from the Federal Aviation Administration in first quarter 2012.
“These accomplishments, among many others, are noteworthy in just three months time. I thank all of our hard-working Employees for their unwavering efforts as we integrate these two great companies, and position Southwest for an exciting and healthy future.”
The Company has incurred $75 million in costs associated with the acquisition and integration of AirTran during 2011, of which $58 million were in second quarter 2011. The Company expects total acquisition and integration costs will be approximately $500 million. Including the anticipated benefit of net synergies, but excluding the impact of acquisition and integration costs, the Company expects the acquisition to be accretive to its fully-diluted earnings per share in 2011, as it was in second quarter 2011. The Company currently estimates that net annual pre-tax synergies will exceed $400 million by 2013.
Capacity Plans
Kelly continued, “Given the pessimistic near-term outlook for fuel prices and the U.S. economy, we have re-evaluated our capacity plans. We trimmed our 2012 winter schedule, published last week, which began to coordinate the Southwest and AirTran networks. We have reduced our planned 2012 capacity to be equal to or less than our 2011 combined available seat miles. We will be aggressive in our efforts to optimize our combined networks and redeploy capacity more profitably.”
The Company expects its 2011 combined available seat miles to grow in the four to five percent range as compared to its 2010 combined capacity.
Liquidity
Net cash provided by operations for second quarter 2011 was $237 million and capital expenditures were $215 million. The acquisition of AirTran was funded with $518 million of cash on hand, and 44 million shares of the Company’s common stock. After considering the cash balances acquired from AirTran, the net cash outlay was $35 million. Subsequent to the acquisition date, a portion of the convertible notes previously held by AirTran note holders were either converted or called by the Company for an aggregate of approximately seven million shares of the Company’s common stock and $81 million in cash. The Company’s $600 million bank credit facility, which was due to expire in October 2012, was replaced during the second quarter with a new, five-year, $800 million unsecured revolving credit line. The Company also terminated AirTran’s $100 million combined revolving credit and letter of credit facility. As of June 30, 2011, the Company had $4.4 billion in unrestricted cash and short-term investments, which did not include $85 million in net cash collateral held by its fuel hedge counterparties.
Net cash provided by operations for first half 2011 was $1.2 billion, and capital expenditures were $272 million, resulting in approximately $900 million in free cash flow. The Company repaid $143 million in debt during first half 2011, and is scheduled to repay approximately $494 million in debt for the remainder of 2011, and approximately $560 million in 2012. The Company expects to generate free cash flow for all of 2011, based on current trends and projected 2011 capital expenditures of approximately $900 million.
Awards and recognitions
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 Named first in the American Customer Satisfaction Index in the Transportation sector Ranked sixth in the 2011 Customer Service Hall of Fame by MSN Money, the only airline to make the top ten Ranked second in the J.D. Power and Associates 2011 North America Airlines Satisfaction Study based on overall customer satisfaction with cost and fees, inflight service, flight crew, aircraft, boarding & baggage, check-in, and reservations Recognized by Glassdoor as one of the best companies for work-life balance Named one of the 100 Top Military Friendly Employers by GI Jobs magazine Awarded for Best Practices in Supplier Diversity by the Dallas Fort Worth Minority Business Council Recognized as a 2011 Stevie Award Winner in the Transportation category by The International Business Awards for outstanding performance in the workplace worldwide
Southwest will discuss its second quarter 2011 results on a conference call at 11:30 a.m. Eastern Time today. A live broadcast of the conference call will also be available at southwest.com/investor_relations.
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 growth plans and expectations, including network and capacity plans and expectations; (ii) the Company’s financial outlook; (iii) the Company’s plans and expectations related to managing risk associated with changing jet fuel prices; (iv) the Company’s plans and expectations with respect to its acquisition of AirTran, including the expected costs and benefits of the acquisition, as well as the Company’s integration plans and expectations; and (v) the Company’s expectations with respect to liquidity. 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 the price of aircraft fuel, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions; (ii) the impact of the economy on demand for air travel and fluctuations in consumer demand generally for the Company’s services; (iii) the impact of fuel prices and economic conditions on the Company’s overall business plan and strategies; (iv) the Company’s ability to successfully integrate AirTran and realize the expected synergies from the transaction; (v) actions of competitors, including without limitation pricing, scheduling, and capacity decisions, and consolidation and alliance activities; (vi) 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; (vii) the impact of governmental regulations on the Company’s operations; and (viii) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (1) (in millions, except per share amounts) (unaudited) Three months ended Six months ended June 30, June 30, 2011 2010 Percent Change 2011 2010 Percent Change OPERATING REVENUES: Passenger $ 3,876 $ 3,016 28.5 $ 6,814 $ 5,511 23.6 Freight 36 33 9.1 67 63 6.3 Other 224 119 88.2 357 224 59.4 Total operating revenues 4,136 3,168 30.6 7,238 5,798 24.8 OPERATING EXPENSES: Salaries, wages, and benefits 1,125 946 18.9 2,078 1,810 14.8 Fuel and oil 1,527 933 63.7 2,565 1,754 46.2 Maintenance materials and repairs 246 194 26.8 444 360 23.3 Aircraft rentals 79 45 75.6 125 92 35.9 Landing fees and other rentals 247 206 19.9 448 396 13.1 Depreciation and amortization 176 154 14.3 332 308 7.8 Acquisition and integration 58 - n.a. 75 - n.a. Other operating expenses 471 327 44.0 850 661 28.6 Total operating expenses 3,929 2,805 40.1 6,917 5,381 28.5 OPERATING INCOME 207 363 (43.0) 321 417 (23.0) OTHER EXPENSES (INCOME): Interest expense 51 42 21.4 94 83 13.3 Capitalized interest (2) (5) (60.0) (5) (10) (50.0) Interest income (4) (4) - (7) (6) 16.7 Other (gains) losses, net (113) 146 n.a. (54) 150 n.a. Total other (income) expenses (68) 179 n.a. 28 217 n.a. INCOME BEFORE INCOME TAXES 275 184 49.5 293 200 46.5 PROVISION FOR INCOME TAXES 114 72 58.3 127 77 64.9 NET INCOME $ 161 $ 112 43.8 $ 166 $ 123 35.0 NET INCOME PER SHARE: Basic $ 0.21 $ 0.15 $ 0.22 $ $0.17 Diluted $ 0.21 $ 0.15 $ 0.22 $ $0.17 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 780 745 764 744 Diluted 787 746 765 745 (1) Includes May and June 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. 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 Six months ended June 30, June 30, 2011 2010 Percent Change 2011 2010 Percent Change Fuel and oil expense, unhedged $ 1,533 843 $ 2,577 1,573 Add/(Deduct): Fuel hedge (gains) losses included in Fuel and oil expense (6) 90 (12) 181 Fuel and oil expense, as reported $ 1,527 933 $ 2,565 1,754 Add/(Deduct): Net impact from fuel contracts (2) (11) (51) 6 (99) Fuel and oil expense, economic $ 1,516 882 71.9 $ 2,571 1,655 55.3 Total operating expenses, as reported $ 3,929 2,805 $ 6,917 5,381 Add/(Deduct): Net impact from fuel contracts (2) (11) (51) 6 (99) Total operating expenses, economic $ 3,918 2,754 $ 6,923 5,282 Add: Charge for Acquisition and integration costs, net (3) (58) - (72) - Total operating expenses, non-GAAP $ 3,860 2,754 40.2 $ 6,851 5,282 29.7 Operating income (loss), as reported $ 207 363 $ 321 417 Add/(Deduct): Net impact from fuel contracts (2) 11 51 (6) 99 Operating income, economic $ 218 414 $ 315 516 Add: Charge for Acquisition and integration costs, net (3) 58 - 72 - Operating income, non-GAAP $ 276 414 (33.3) $ 387 516 (25.0) Other (gains) losses, net, as reported $ (113) 146 $ (54) 150 Add/(Deduct): Net impact from fuel contracts (2) 140 (115) 111 (88) Other losses, net, non-GAAP $ 27 31 (12.9) $ 57 62 (8.1) Income before income taxes, as reported $ 275 184 $ 293 200 Add/(Deduct): Net impact from fuel contracts (2) (129) 166 (117) 187 $ 146 350 $ 176 387 Add: Charge for Acquisition and integration costs, net (3) 58 - 72 - Income before income taxes, non-GAAP $ 204 350 (41.7) $ 248 387 (35.9) Net income, as reported $ 161 112 $ 166 123 Add/(Deduct): Net impact from fuel contracts (2) (129) 166 (117) 187 Income tax impact of fuel contracts 49 (62) 45 (71) $ 81 216 $ 94 239 Add: Charge for Acquisition and integration costs, net (4) 40 - 48 - Net income, non-GAAP $ 121 216 (44.0) $ 142 239 (40.6) Net income per share, diluted, as reported $ 0.21 0.15 $ 0.22 0.17 Add/(Deduct): Net impact from fuel contracts (0.10) 0.14 (0.09) 0.15 $ 0.11 0.29 $ 0.13 0.32 Add: Impact of special items, net (4) 0.04 - 0.06 - Net income per share, diluted, non-GAAP $ 0.15 0.29 (48.3) $ 0.19 0.32 (40.6) (1) Includes May and June 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) 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. (4) Amounts net of taxes and profitsharing as described in footnote (3) 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 Six months ended June 30, June 30, 2011 2010 2011 2010 Fuel & Oil Expense Add/(Deduct): Reclassification between Fuel & Oil and Other (gains) losses, net, associated with current period settled contracts $ (11) $ 7 $ (9) $ 11 Add/(Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period * - (58) 15 (110) Impact from fuel contracts to Fuel & oil expense (11) (51) 6 (99) Operating Income Add/(Deduct): Reclassification between Fuel & Oil and Other (gains) losses, net, associated with current period settled contracts $ 11 $ (7) $ 9 $ (11) Add/(Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period * - 58 (15) 110 Impact from fuel contracts to Operating Income 11 51 (6) 99 Other (gains) losses Add/(Deduct): Mark-to-market impact from fuel contracts settling in current and future periods $ 136 $ (57) $ 139 $ (31) Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods (7) (51) (37) (46) Add/(Deduct): Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts 11 (7) 9 (11) Impact from fuel contracts to Other (gains) losses 140 (115) 111 (88) Net Income Add/(Deduct): Mark-to-market impact from fuel contracts settling in current and future periods $ (136) $ 57 $ (139) $ 31 Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods 7 51 37 46 Add/(Deduct): Other net impact of fuel contracts settling in the current or a prior period (excluding reclassifications) - 58 (15) 110 Impact from fuel contracts to Net Income ** (129) 166 (117) 187 (1) Includes May and June 2011 financial results for AirTran. * As a result of prior hedge ineffectiveness and/or contracts marked to market through earnings ** Excludes income tax impact of unrealized items SOUTHWEST AIRLINES CO. COMPARATIVE CONSOLIDATED OPERATING STATISTICS (1) (unaudited) Three months ended Six months ended June 30, June 30, 2011 2010 Change 2011 2010 Change Revenue passengers carried 27,114,480 22,883,422 18.5 % 48,229,595 42,860,257 12.5 % Enplaned Passengers 33,430,914 27,554,201 21.3 % 59,030,032 51,248,665 15.2 % Revenue passenger miles (RPMs) (000s) 25,883,849 20,206,229 28.1 % 45,079,735 37,367,943 20.6 % Available seat miles (ASMs) (000s) 31,457,412 25,471,845 23.5 % 55,963,085 48,091,305 16.4 % Load Factor 82.3 % 79.3 % 3.0 pts 80.6 % 77.7 % 2.9 pts Average length of passenger haul (miles) 955 883 8.2 % 935 872 7.2 % Average aircraft stage length (miles) 685 650 5.4 % 672 642 4.7 % Trips flown 340,768 287,222 18.6 % 614,591 549,114 11.9 % Average passenger fare $ 142.94 $ 131.82 8.4 % $ 141.29 $ 128.60 9.9 % Passenger revenue yield per RPM (cents) 14.97 14.93 0.3 % 15.12 14.75 2.5 % RASM (cents) 13.15 12.44 5.7 % 12.93 12.06 7.2 % PRASM (cents) 12.32 11.84 4.1 % 12.18 11.46 6.3 % CASM (cents) 12.49 11.01 13.4 % 12.36 11.19 10.5 % CASM , excluding fuel (cents) 7.63 7.35 3.8 % 7.77 7.54 3.1 % CASM, excluding special items (cents) 12.27 10.81 13.5 % 12.24 10.98 11.5 % CASM, excluding fuel and special items (cents) 7.45 7.35 1.4 % 7.64 7.54 1.3 % Fuel costs per gallon, including fuel tax (unhedged) $ 3.31 $ 2.26 46.5 % $ 3.15 $ 2.24 40.6 % Fuel costs per gallon, including fuel tax $ 3.30 $ 2.50 32.0 % $ 3.13 $ 2.49 25.7 % Fuel costs per gallon, including fuel tax (economic) $ 3.28 $ 2.37 38.4 % $ 3.14 $ 2.35 33.6 % Fuel consumed, in gallons (millions) 462 372 24.2 % 817 701 16.5 % Active fulltime equivalent Employees 43,805 34,636 26.5 % 43,805 34,636 26.5 % Aircraft in service at period-end 694 544 27.6 % 694 544 27.6 % 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 and June 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. RETURN ON INVESTED CAPITAL (1) (in millions) (unaudited) 12 Months Ended 12 Months Ended June 30, 2011 June 30, 2010 Operating Income, as reported $ 892 $ 607 Add/(Deduct): Net impact from fuel contracts 65 181 Add: Acquisition and integration costs, net (2) 79 - Add: Charge for voluntary early out program, net - 56 Operating Income, Non-GAAP $ 1,036 $ 844 Net adjustment for aircraft leases (3) 96 90 Adjustment for fuel hedge accounting (130) (141) Adjusted Operating Income, Non-GAAP $ 1,002 $ 793 Average Invested Capital (4) $ 11,134 $ 10,057 Equity adjustment for fuel hedge accounting 224 604 Adjusted Average Invested Capital $ 11,358 $ 10,661 . ROIC, pretax 9% 7% (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. SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED BALANCE SHEET (1) (in millions) (unaudited) June 30, December 31, 2011 2010 ASSETS Current assets: Cash and cash equivalents $ 1,595 $ 1,261 Short-term investments 2,779 2,277 Accounts and other receivables 389 195 Inventories of parts and supplies, at cost 394 243 Deferred income taxes - 214 Prepaid expenses and other current assets 264 89 Total current assets 5,421 4,279 Property and equipment, at cost: Flight equipment 15,255 13,991 Ground property and equipment 2,286 2,122 Deposits on flight equipment purchase contracts 226 230 17,767 16,343 Less allowance for depreciation and amortization 6,046 5,765 11,721 10,578 Goodwill 971 - Other assets 832 606 $ 18,945 $ 15,463 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,049 $ 739 Accrued liabilities 1,130 863 Air traffic liability 2,149 1,198 Current maturities of long-term debt 990 505 Total current liabilities 5,318 3,305 Long-term debt less current maturities 3,242 2,875 Deferred income taxes 2,263 2,493 Deferred gains from sale and leaseback of aircraft 82 88 Other non-current liabilities 838 465 Stockholders' equity: Common stock 808 808 Capital in excess of par value 1,219 1,183 Retained earnings 5,398 5,399 Accumulated other comprehensive loss (107) (262) Treasury stock, at cost (116) (891) Total stockholders' equity 7,202 6,237 $ 18,945 $ 15,463 (1) June 30, 2011 balances include the impact of the AirTran acquisition and the preliminary purchase accounting allocation. SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (1) (in millions) (unaudited) Three months ended Six months ended June 30, June 30, 2011 2010 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 161 $ 112 $ 166 $ 123 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 176 154 332 308 Unrealized (gain) loss on fuel derivative instruments (129) 166 (119) 187 Deferred income taxes 95 63 123 75 Amortization of deferred gains on sale and leaseback of aircraft (3) (3) (7) (7) Changes in certain assets and liabilities, net of acquisition: Accounts and other receivables (21) (42) (107) (108) Other current assets (46) 5 (138) (14) Accounts payable and accrued liabilities 67 279 305 195 Air traffic liability 64 86 576 442 Cash collateral received from (provided to) fuel derivative counterparties (49) 130 (20) 135 Other, net (78) (410) 91 (423) Net cash provided by operating activities 237 540 1,202 913 CASH FLOWS FROM INVESTING ACTIVITIES: Payment to acquire AirTran, net of AirTran cash on hand (35) - (35) - Payments for purchase of property and equipment, net (215) (159) (272) (298) Purchases of short-term investments (1,779) (1,800) (3,263) (3,180) Proceeds from sales of short-term investments 1,440 1,349 2,750 2,546 Net cash used in investing activities (589) (610) (820) (932) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Employee stock plans 27 23 31 35 Proceeds from termination of interest rate derivative instrument - - 76 - Payments of long-term debt and capital lease obligations (32) (25) (62) (85) Payments of convertible debt (81) - (81) - Payment of credit line borrowing - (44) - (44) Payments of cash dividends (3) (3) (10) (10) Other, net (3) (2) (2) (2) Net cash used in financing activities (92) (51) (48) (106) NET CHANGE IN CASH AND CASH EQUIVALENTS (444) (121) 334 (125) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,039 1,110 1,261 1,114 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,595 $ 989 $ 1,595 $ 989 SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS: Fair value of equity consideration given to acquire AirTran $ 523 $ - $ 523 $ - Fair value of common stock issued for conversion of debt $ 78 $ - $ 78 $ - (1) Includes the impact of the AirTran acquisition as of May 2, 2011. SOUTHWEST AIRLINES CO. FUEL DERIVATIVE CONTRACTS AS OF AUGUST 1, 2011 Percent of estimated fuel consumption covered by fuel derivative contracts Average WTI Crude Oil price per barrel 3Q 2011 4Q 2011 Up to $90 approx. 55% approx. 60% $90 to $95 approx. 45% approx. 60% $95 to $110 (1) approx. 55% approx. 45% $110 to $120 (2) approx. 70% approx. 75% Above $120 (2) approx. 65% approx. 65% Estimated difference in economic jet fuel price per gallon, above/(below) unhedged market prices, including taxes Average WTI Crude Oil price per barrel 3Q 2011 4Q 2011 $85 $0.04 $0.09 $96 (1) ($0.03) ($0.02) $115 ($0.16) ($0.19) $130 ($0.33) ($0.42) Percent of estimated fuel consumption covered by fuel derivative contracts at Full Year varying WTI crude-equivalent price levels Second Half 2011 approx. 50% (2) 2012 approx. 65% (3) 2013 over 50% 2014 over 40% 2015 over 10% (1) Based on the third quarter 2011 average WTI forward curve and market prices as of August 1, 2011, and current estimated fuel consumption covered by fuel derivative contracts, third quarter 2011 economic fuel price per gallon, including taxes, is estimated to be approximately $3.30 per gallon, or $0.03 below market prices. (2) Based on the second half 2011 average WTI forward curve and market prices as of August 1, 2011, the Company has approximately 50% of its estimated second half 2011 fuel consumption covered by fuel derivative contracts. If prices settle between $110 and $120 per barrel, the estimated second half 2011 fuel consumption covered by fuel derivative contracts increases to approximately 75%, and if prices settle above $120 per barrel, the coverage decreases to approximately 65%. (3) Based on the 2012 average WTI forward curve and market prices as of August 1, 2011, the Company has approximately 65% of its estimated 2012 fuel consumption covered by fuel derivative contracts. If prices settle between $110 and $120 per barrel, the estimated 2012 fuel consumption covered by fuel derivative contracts increases to approximately 85%; if prices settle between $120 and $130 per barrel, the coverage decreases to approximately 55%; and if prices settle above $130 per barrel, the coverage decreases to approximately 35%. SOUTHWEST AIRLINES CO. 737 FUTURE DELIVERY SCHEDULE (a) AS OF AUGUST 3, 2011 The Boeing Company -700 -800 Purchase Additional Firm Orders Firm Orders Options Rights -800s Total 2011 6 6(b) 2012 6 20 2 5 33 2013 25 6 31 2014 29 6 35 2015 26 1 27 2016 31 7 38 2017 5 17 22 Through 2021 98 98 Total 128(c) 20 39 98 5 290 (a) Includes AirTran's future firm orders and options from Boeing. (b) The Company has already taken delivery of 14 737-700 aircraft through August 2, 2011. (c) The Company is evaluating substituting 737-800s in lieu of 737-700 firm orders currently scheduled for 2012 through 2017. SUPPLEMENTAL COMBINED STATEMENT I SOUTHWEST AIRLINES CO. SELECTED COMBINED FINANCIAL INFORMATION (1) (in millions) (unaudited) Three months ended Six months ended June 30, June 30, Percent Percent 2011 2010 Change 2011 2010 Change OPERATING REVENUES: Passenger $ 4,113 $ 3,621 13.6 $ 7,627 $ 6,631 15.0 Freight 36 33 9.1 67 63 6.3 Other 258 215 20.0 483 410 17.8 Total operating revenues 4,407 3,869 13.9 8,177 7,104 15.1 OPERATING EXPENSES: Salaries, wages, and benefits 1,173 1,077 8.9 2,271 2,072 9.6 Fuel and oil 1,631 1,152 41.6 2,925 2,160 35.4 Maintenance materials and repairs 269 251 7.2 532 476 11.8 Aircraft rentals 99 106 (6.6) 206 213 (3.3) Landing fees and other rentals 260 251 3.6 502 480 4.6 Depreciation and amortization 182 169 7.7 352 337 4.5 Acquisition and integration 79 - n.a. 101 - n.a. Other operating expenses 509 426 38.0 998 863 27.3 Total operating expenses 4,202 3,432 22.4 7,887 6,601 19.5 OPERATING INCOME 205 437 (53.1) 290 503 (42.3) OTHER EXPENSES (INCOME): Interest expense 56 65 (13.8) 115 128 (10.2) Capitalized interest (3) (6) (50.0) (6) (11) (45.5) Interest income (3) (5) (40.0) (7) (7) - Other (gains) losses, net (125) 187 n.a. (97) 192 n.a. Total other (income) expenses (75) 241 n.a. 5 302 n.a. INCOME BEFORE INCOME TAXES $ 280 $ 196 42.9 $ 285 $ 201 41.8 (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. 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. 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 Six Months Ended June 30, June 30, Percent Percent 2011 2010 Change 2011 2010 Change Fuel and oil expense, combined unhedged $ 1,646 1,068 $ 2,955 1,993 Add/(Deduct): Fuel hedge (gains) losses included in Fuel and oil expense (15) 84 (30) 167 Fuel and oil expense, as presented on Supplemental Combined Statement I $ 1,631 1,152 $ 2,925 2,160 Add/(Deduct): Net impact from fuel contracts (11) (51) 6 (99) Fuel and oil expense, combined economic $ 1,620 1,101 47.1 $ 2,931 2,061 42.2 Total operating expenses, as presented on Supplemental Combined Statement I $ 4,202 3,432 $ 7,887 6,601 Add/(Deduct): Net impact from fuel contracts (11) (51) 6 (99) Total operating expenses, combined economic $ 4,191 3,381 $ 7,893 6,502 Add: Charge for Acquisition and integration costs, net (2) (79) - (98) - Total operating expenses, combined non-GAAP $ 4,112 3,381 21.6 $ 7,795 6,502 19.9 Operating income, as presented on Supplemental Combined Statement I $ 205 437 $ 290 503 Add/(Deduct): Net impact from fuel contracts 11 51 (6) 99 Operating income, combined economic $ 216 488 $ 284 602 Add: Charge for Acquisition and integration costs, net (2) 79 - 98 - Operating income, combined non-GAAP $ 295 488 (39.5) $ 382 602 (36.5) Other (gains) losses, net, as presented on Supplemental Combined Statement I $ (125) 187 $ (97) 192 Add/(Deduct): Net impact from fuel contracts 155 (149) 162 (116) Other losses, net, combined non-GAAP $ 30 38 (21.1) $ 65 76 (14.5) Income (loss) before income taxes, as presented on Supplemental Combined Statement I $ 280 196 $ 285 201 Add/(Deduct): Net impact from fuel contracts (144) 200 (168) 215 $ 136 396 $ 117 416 Add: Charge for Acquisition and integration costs, net (2) 79 - 98 - Income before income taxes, combined non-GAAP $ 215 396 (45.7) $ 215 416 (48.3) (1) Selected combined amounts presented in this schedule include 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) 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) Three months ended June 30, 2011 Six months ended June 30, 2011 Southwest Southwest Airlines Co. Airlines Co. (as reported) AirTran (2) Combined (as reported) AirTran (2) Combined OPERATING REVENUES: Passenger $ 3,876 $ 237 $ 4,113 $ 6,814 $ 812 $ 7,627 Freight 36 - 36 67 - 67 Other 224 34 258 357 126 483 Total operating revenues 4,136 271 4,407 7,238 938 8,177 OPERATING EXPENSES: Salaries, wages, and benefits 1,125 49 1,173 2,078 193 2,271 Fuel and oil 1,527 104 1,631 2,565 361 2,925 Maintenance materials and repairs 246 23 269 444 88 532 Aircraft rentals 79 20 99 125 81 206 Landing fees and other rentals 247 14 260 448 54 502 Depreciation and amortization 176 6 182 332 20 352 Acquisition and integration 58 21 79 75 26 101 Other operating expenses 471 38 509 850 146 998 Total operating expenses 3,929 275 4,202 6,917 969 7,887 OPERATING INCOME (LOSS) 207 (4) 205 321 (31) 290 OTHER EXPENSES (INCOME): Interest expense 51 5 56 94 21 115 Capitalized interest (2) - (3) (5) - (6) Interest income (4) - (3) (7) - (7) Other (gains) losses, net (113) (12) (125) (54) (43) (97) Total other expenses (income) (68) (7) (75) 28 (22) 5 INCOME (LOSS) BEFORE INCOME TAXES $ 275 $ 3 $ 280 $ 293 $ (9) $ 285 (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, represent 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 FINANCIAL INFORMATION (1) DETAIL OF AIRLINE SECOND QUARTER 2011 RESULTS AND PURCHASE ACCOUNTING IMPACT (in millions) (unaudited) Three months ended June 30, 2011 Purchase Southwest (2) AirTran (3) Accounting (4) Combined (5) OPERATING REVENUES: Passenger $ 3,413 $ 704 $ (4) $ 4,113 Freight 36 - - 36 Other 151 107 - 258 Total operating revenues 3,600 811 (4) 4,407 OPERATING EXPENSES: Salaries, wages, and benefits 1,027 146 - 1,173 Fuel and oil 1,310 321 - 1,631 Maintenance materials and repairs 201 68 - 269 Aircraft rentals 45 60 (6) 99 Landing fees and other rentals 217 43 - 260 Depreciation and amortization 160 16 6 182 Acquisition and integration 34 45 - 79 Other operating expenses 406 103 - 509 Total operating expenses 3,400 802 - 4,202 OPERATING INCOME (LOSS) 200 9 (4) 205 OTHER EXPENSES (INCOME): Interest expense 44 13 (1) 56 Capitalized interest (2) (1) - (3) Interest income (3) - - (3) Other (gains) losses, net (163) 38 - (125) Total other (income) expenses (124) 50 (1) (75) INCOME (LOSS) BEFORE INCOME TAXES $ 324 $ (41) $ (3) $ 280 (1) See Note Regarding Use of Non-GAAP Financial Measures. (2) Results presented for Southwest exclude AirTran results for May and June 2011, and exclude the impact of purchase accounting. (3) Results presented for AirTran include all three months, before and after the acquisition date, and exclude the impact of purchase accounting. (4) Represents the impact of purchase accounting as of May 2, 2011. (5) See Supplemental Combined Statement III for a reconciliation of this combined information to our historical GAAP reported amounts. SUPPLEMENTAL COMBINED STATEMENT V SOUTHWEST AIRLINES CO. RECONCILIATION OF SELECTED STANDALONE AMOUNTS FROM SUPPLEMENTAL COMBINED STATEMENT IV TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions, except per share amounts) (unaudited) Three Months Ended June 30, 2011 Southwest AirTran Fuel and oil expense, standalone unhedged $ 1,307 $ 339 Add/(Deduct): Fuel hedge (gains) losses included in Fuel and oil expense 3 (18) Fuel and oil expense, standalone as presented on Supplemental Combined Statement IV (2) $ 1,310 $ 321 Add/(Deduct): Net impact from fuel contracts (11) - Fuel and oil expense, standalone economic $ 1,299 $ 321 Total operating expenses, standalone as presented on Supplemental Combined Statement IV (2) $ 3,400 $ 802 Add/(Deduct): Net impact from fuel contracts (11) - Total operating expenses, standalone economic $ 3,389 $ 802 Add: Charge for Acquisition and integration costs (3) (34) (45) Total operating expenses, standalone non-GAAP $ 3,355 $ 757 Operating income, standalone as presented on Supplemental Combined Statement IV (2) $ 200 $ 9 Add/(Deduct): Net impact from fuel contracts 11 - Operating income, standalone economic $ 211 $ 9 Add: Charge for Acquisition and integration costs (3) 34 45 Operating income, standalone non-GAAP $ 245 $ 54 Other (gains) losses, net, standalone as presented on Supplemental Combined Statement IV (2) $ (163) $ 38 Add/(Deduct): Net impact from fuel contracts 190 (35) Other losses, net, standalone non-GAAP $ 27 $ 3 Income (loss) before income taxes, standalone as presented on Supplemental Combined Schedule IV (2) $ 324 $ (41) Add/(Deduct): Net impact from fuel contracts (179) 35 $ 145 $ (6) Add: Charge for Acquisition and integration costs (3) 34 45 Income before income taxes, standalone non-GAAP $ 179 $ 39 (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 Supplemental Combined Schedule IV for the detail of standalone airline results and the purchase accounting impact as of May 2, 2011. (3) 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. SUPPLEMENTAL COMBINED STATEMENT VI SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING COMBINED 2010 FINANCIAL INFORMATION (1) (in millions) (unaudited) Three months ended June 30, 2010 Six months ended June 30, 2010 (as reported) (as reported) Southwest AirTran Southwest AirTran Airlines Co. (as conformed) Combined Airlines Co. (as conformed) Combined OPERATING REVENUES: Passenger $ 3,016 $ 605 $ 3,621 $ 5,511 $ 1,120 $ 6,631 Freight 33 - 33 63 - 63 Other 119 96 215 224 186 410 Total operating revenues 3,168 701 3,869 5,798 1,306 7,104 OPERATING EXPENSES: Salaries, wages, and benefits 946 131 1,077 1,810 262 2,072 Fuel and oil 933 219 1,152 1,754 406 2,160 Maintenance materials and repairs 194 57 251 360 116 476 Aircraft rentals 45 61 106 92 121 213 Landing fees and other rentals 206 45 251 396 84 480 Depreciation and amortization 154 15 169 308 29 337 Other operating expenses 327 99 426 661 202 863 Total operating expenses 2,805 627 3,432 5,381 1,220 6,601 OPERATING INCOME 363 74 437 417 86 503 OTHER EXPENSES (INCOME): Interest expense 42 23 65 83 45 128 Capitalized interest (5) (1) (6) (10) (1) (11) Interest income (4) (1) (5) (7) - (7) Other (gains) losses, net 146 41 187 150 42 192 Total other expenses 179 62 241 216 86 302 INCOME BEFORE INCOME TAXES $ 184 $ 12 $ 196 $ 201 $ - $ 201 (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 VII SOUTHWEST AIRLINES CO. COMBINED OPERATING STATISTICS (1) (unaudited) Three months ended Six months ended June 30, 2011 June 30, 2011 2011 2010 Change 2011 2010 Change Revenue passengers carried 28,826,013 27,997,507 3.0 % 54,407,408 52,308,579 4.0 % Enplaned passengers 35,559,232 34,084,746 4.3 % 66,753,484 63,298,260 5.5 % Revenue passenger miles (RPMs) (000s) 27,646,263 25,403,035 8.8 % 51,361,693 46,945,728 9.4 % Available seat miles (ASMs) (000s) 33,639,005 31,722,856 6.0 % 63,902,550 60,015,014 6.5 % Load factor 82.2 % 80.1 % 2.1 pts 80.4 % 78.2 % 2.2 pts Average length of passenger haul (miles) 959 907 5.7 % 944 897 5.2 % Average aircraft stage length (miles) 691 671 3.0 % 684 664 3.0 % Trips flown 362,691 352,352 2.9 % 696,258 674,142 3.3 % Average passenger fare $ 142.68 $ 129.33 10.3 % $ 140.17 $ 126.77 10.6 % Passenger revenue yield per RPM (cents) 14.88 14.25 4.4 % 14.85 14.13 5.1 % RASM (cents) 13.10 12.20 7.4 % 12.80 11.84 8.1 % PRASM (cents) 12.23 11.41 7.2 % 11.93 11.05 8.0 % CASM (cents) 12.49 10.82 15.4 % 12.34 11.00 12.2 % CASM, excluding fuel (cents) 7.64 7.19 6.3 % 7.76 7.40 4.9 % CASM, excluding special items (cents) 12.22 10.66 14.6 % 12.20 10.83 12.7 % CASM, excluding fuel and special items (cents) 7.41 7.19 3.1 % 7.61 7.40 2.8 % Fuel costs per gallon, including fuel tax (unhedged) $ 3.32 $ 2.27 46.3 % $ 3.14 $ 2.24 40.2 % Fuel costs per gallon, including fuel tax $ 3.29 $ 2.45 34.3 % $ 3.11 $ 2.43 28.0 % Fuel costs per gallon, including fuel tax (economic) $ 3.27 $ 2.34 39.7 % $ 3.11 $ 2.32 34.1 % Fuel consumed, in gallons (millions) 495 469 5.5 % 940 886 6.1 % 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 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 financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). These GAAP financial statements include 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. 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. In addition to its "economic" financial measures, as defined above, the Company has also provided 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 and six months ended June 30, 2011 of $58 million and $75 million, respectively (before the impact of profitsharing and/or taxes) related to expenses associated with the Company's acquisition and integration of AirTran. The Company believes that evaluation of its financial performance can be enhanced by a presentation of results that exclude the impact of these items in order to evaluate the results on a comparative basis with results in prior periods that do not include such items and as a basis for evaluating operating results in future periods. As a result of the Company's acquisition of AirTran, which closed on May 2, 2011, the Company has incurred and expects to continue to incur substantial charges associated with integration of the two companies. While the Company cannot predict the exact timing or amounts of such charges, it does expect to treat the charges as special items in its future presentation of non-GAAP results. The Company has also provided 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. SOURCE Southwest Airlines Co.
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Southwest Airlines has won an International Stevie Award for Transportation in the 2011 International Business Awards. Recipients of International Stevie Award trophies were selected from more than 3,000 entries received from organizations and individuals in more than 40 nations. Organizations all over the world are eligible to compete in The International Business Awards, and can enter in any of more than 40 categories from Company of the Year and Best New Product of the Year to Corporate Social Responsibility Program of the Year and Executive of the Year. Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, the Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Honoring organizations of all types and sizes and the people behind them, the Stevie recognize outstanding performances in the workplace worldwide. Complete lists of honorees and other details are available at www.stevieawards.com/iba
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07-29-2011
04:15 PM
563 Loves
Well gosh, it's Oshkosh! This week's SWA Stew comes to you from Oshkosh, Wisconsin, home of what's been dubbed the "World's Greatest Aviation Celebration!" Planes new and old, pilots new and old--this place has it all! Highlights in this sixteenth episode of the 'Stew include the P-3 Orion, more charity, more beer (with DishTrip), Flashing back to our first dispatch office, and the schedule opening extravaganza! Yep, you can now book flights through March 9, 2012! Link LUV: Oshkosh AirVenture Plane of the Day: P-3 Orion Flashback Friday: Our First Dispatch Office Special Dish Trip: Beer in Boston Schedule Extended to March 9, 2012 Show LUV to Our Communities: First 10 Winners Announced
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To be in the presence of this airplane is pretty surreal, for a number of reasons. This Boeing B-29 Superfortress Bomber, named "Fifi," is currently the only one in the entire world fit enough to fly. More than two dozen of these planes are in aviation museums, and other museums around the world. They will likely stay on land forever, no longer able to make the journey to the sky. Front of the Boeing B-29 Superfortress Bomber The B-29 was primarily used during World War II and the Korean War, as a bomber that ran day missions at a high altitude. The most famous B-29 Bomber is the Enola Gay. The Enola Gay played the center piece in one of the most historical events in world history: it was the plane that carried the atomic bombs dropped on Hiroshima and Nagasaki. Military mechanics had fits keeping the B-29 in the sky, because of its engine (hence, why only Fifi is able to fly today). A couple of my Coworkers saw Fifi come in, and I am hoping to see her when she takes off. Fifi's four propellers are massive. Propeller on the Boeing B-29 Superfortress Bomber The body and tail of this Bomber are equally enormous. In the back is a pair of machine guns, used to fend off enemy planes. Rear and Tail of the Boeing B-29 Superfortress Bomber One of the military veterans who participated in our Oshkosh Honor Flight yesterday flew in a B-29 during World War II. Our Honor Flight left Oshkosh yesterday morning with full capacity, bound for the war memorials in Washington, D.C. It returned yesterday evening. I wanted to share a picture of those veterans arriving back in OSH last night, and thank you all, and all of our service men and women, for your dedication to our country. Honor Flight Returning from Washington, D.C.
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This is what I envision pilots like Amelia Earhart or Dick Dastardly piloting, with silk scarves, goggles and leather flying helmets. And that's exactly how the WACO Classic is marketed: a vintage flying experience. It's an open cockpit, bi-winged aircraft that does a variety of acrobatics, and combs the ground low enough to smell the roses. This particular model was built by WACO Classic Aircraft Corp. out of Battle Creek, Michigan. Side View of the WACO YMF-5D Biplane This WACO Classic has a cruising speed of 123 mph, and never exceeds 214 mph. Its Stall Speed is 59 mph, which is about how slow you'll see it go when it performs loops (which it's known for). WACO Classic from the Back I'm a huge fan of this plane, but I'm a sucker for old school aviation designs. But what do I know? If you have any cool stories involving this plane, or recommendations about the next plane I should go searching for, please leave it in the comments section of this post!
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Warbirds. NASA geographical research planes. Experimental Cessnas. Not my usual vernacular. Yes, I work for an airline, and I've become increasingly interested in aviation. But at Oshkosh, I don't even qualify as a novice. I'm practically in the womb--I know nothing. I'm a guppie swimming with the dolphins: insignificant and infinitely less intelligent than my counterparts (at least when it comes to aviation... at least). In an effort to learn more, I've soaked in pilot-to-pilot conversations, and wandered around talking to people in uniform. That's what led me to the P-3 Orion, which is conveniently one of two planes I hope to feature today on the blog. Introduced some 50 years ago, the P-3 Orion is a four-engine turboprop aircraft, built by Lockheed Martin and this one is operated by the United States Navy. The P-3 Orion is an anti-submarine warfare and anti-surface warfare aircraft. The P-3 Orion carries up to 21 people, and this beast flies primarily out of Florida and Washington, deploying all over the world. Inside of a P-3 Orion Propeller Typically, the crew of this P-3 Orion flies ten hour missions. P-3 Orion Crew Loading Up The tail of the P-3 Orion plays a crucial role in identifying submarines. Most of the missions flown on this aircraft are top secret, and go unannounced. Tail of the P-3 Orion Lockheed Martin has currently built more than 700 P-3 Orion planes for navies and air forces around the world.
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DALLAS—July 25, 2011—Southwest Airlines and AirTran Airways today each released flight schedules for January 8, 2012, through March 9, 2012. Today’s schedule release reflects the first effort by Southwest and AirTran to coordinate published schedules. While the airlines’ networks are not connected at this point, both airlines are working together to publish the best flight schedules to the places Customers want to go. The schedule coordination is a first effort by both airlines to maximize operations and prepare for full integration. Southwest Airlines has also continued to optimize its network to better match capacity to demand. Customers will see some shifts in capacity due to the typical slowing of demand in the winter months matching supply of seats with passenger demand, and continued pruning of unproductive flying due to high fuel costs. Southwest is pleased to announce some additional routes coming into the schedule. To book Southwest flights through March 9, 2012, please visit:www.southwest.com. To view a comprehensive chart of the Southwest schedule changes, please visit www.swamedia.com. BEGINNING JANUARY 7, 2012 (open for sale today): One new daily nonstop roundtrip between Nashville and Fort Myers. One new daily nonstop roundtrip between Denver and Providence. One new daily nonstop roundtrip between Ft. Lauderdale/Hollywood and Manchester. One new daily nonstop roundtrip between Ft. Lauderdale/Hollywood and Milwaukee. BEGINNING FEBRUARY 12, 2012 (open for sale today): One new daily nonstop roundtrip between Long Island/Islip and Fort Myers. “As we move toward full integration, we continue looking for ways to optimize operations and schedules at both Southwest and AirTran,” said Bob Jordan, Southwest Airlines Executive Vice President of Strategy and Planning and AirTran Airways President. “The airline industry is facing many challenges including significantly higher fuel costs. We must do everything we can to operate efficiently, continue to offer schedules that best match capacity to demand, and deliver the legendary Customer Service both airlines are known for.” To read a blog post about the schedule changes, please visit www.blogsouthwest.com. To book AirTran flights through March 9, 2012, please visit: www.airtran.com. About Southwest Airlines Co. 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 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 3,400 flights a day and has more than 35,000 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 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, Business Class and complimentary SiriusXM Satellite Radio on every flight. www.southwest.com
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07-22-2011
01:53 PM
778 Loves
Yahtzee! It's the fifteenth edition of the SWA Stew! Sure to bring you fun and frolic, merriment, and it may even make you question just what exactly you're doing with your time? Nonsense, actually, thank you for watching! And this week you can expect to hear about beer... and Herb, Yahtzee!, Oshkosh and charity (though not necessarily in that order). Link LUV: Special Dish Trip Edition: Beer in Boston Walk the Line to Oshkosh Must-see Herb TV Yahtzee -- Southwest Airlines Rapid Rewards Style Showing LUV to Our Communities for 40 Years
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Airline Reduces Fares for Fall Travel as Low as $59 One-Way DALLAS—July 19, 2011—Southwest Airlines has lowered the cost of fall travel with its recent fare sale, offering Customers airfares starting as low as $59 one-way to select destinations nationwide. These super low fares are available for purchase at southwest.com today through Aug. 1, 2011, 11:59 pm PST. The fares are available for travel between Aug. 23, 2011, and Dec. 14, 2011. To see the list of markets, prices, and to take advantage of these special fares, visit www.southwest.com.
Examples of fares include (see Additional Fare Rules below):
$59 one-way between Philadelphia and Raleigh-Durham $89 one-way between Los Angeles and Salt Lake City $99 one-way between Albuquerque and Dallas
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 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 3,400 flights a day and has more than 35,000 Employees systemwide.
ADDITIONAL FARE RULES
Fares are available only on www.southwest.com and can be purchased today, through Aug. 1, 2011, 11:59 pm PST. Travel must take place between Aug. 23, 2011, and Dec. 14, 2011. Travel valid every day except Fridays and Sundays. Blackout dates apply: Sept. 1 through Sept. 5, 2011, and Nov. 17 through Nov. 29, 2011. Fares do not include a federal segment tax of $3.70 per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 and U.S. government-imposed September 11th Security Fee of up to $5.00 one-way. Travel is not available to/from Albany, NY; Charleston, SC; Washington (Dulles), D.C.; New York (LaGuardia), NY; or Ft. Myers, FL. 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 the itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only.
www.southwest.com
Media Please Contact:
Southwest Airlines Public Relations at 214-792-4847
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DALLAS — July 16, 2011 — Southwest Airlines is pleased to announce an agreement in principle between the Southwest Airlines Pilots’ Association (SWAPA), the union representing Southwest Airlines Pilots and the Air Line Pilots Association (ALPA), the union representing the pilots of AirTran Airways. This agreement in principle, subject to the respective unions’ board approval and membership ratification, would integrate the two groups’ seniority lists. Southwest Airlines finalized closing of the acquisition of AirTran Holdings, Inc. on May 2, 2011.
“The unions and Company negotiating teams have accomplished a task that is rare in this industry, developing an integrated seniority list and transition plan for our Pilots outside of arbitration," said Mike Van de Ven, Southwest Airlines Executive Vice President and Chief Operating Officer. “It's just another example of our People taking ownership in the integration of AirTran into Southwest Airlines, and that's our Culture.”
“We are proud of both groups’ initiative to take a remarkably difficult task and produce something fair and equitable for both sides,” added Capt. Chuck Magill, Southwest Airlines Vice President of Flight Operations. “Our Pilots have demonstrated exceptional leadership through their dedication to this process and their commitment to the integration.”
Southwest Airlines will continue to work toward combining the operations of both carriers and to the success this opportunity offers Customers, Employees and Shareholders. Reaching a negotiated agreement with the two Pilot groups avoids the arbitration process and gives both groups ownership of the combined list.
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 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 3,400 flights a day and has more than 35,000 Employees systemwide.
Southwest Airlines Media Contact: 214/792-4847
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07-16-2011
02:47 PM
481 Loves
In this 14th edition of SWA Stew, we bid farewell to NASA's shuttle program, say hello to Oshkosh, get real charitable, and head to Guadalajara with our resident foodie Mary Bigham. Yep, Mary went south of the border, made possible by Southwest's partnership with our airline partner Volaris. Blog Boy Brian Lusk also time warps us back to the '70s. Also, the Peanut Gallery gives me lessons on shaving to avoid future gashes in my face. And why am I holding a boom mic? The world may never know. Link LUV: Flashback Fridays: The 1970s and Southwest Airlines Walking the Line to Oshkosh The Final Farewell of Atlantis Dish Trip Explores the Tastes in Guadalajara and Tequila, Mexico Showing LUV to our Communities for 40 Years
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A 10-mile stretch of LA’s I-405 San Diego Freeway will be shut down for construction beginning as early as 7 p.m. PDT Friday, July 15, and will reopen the morning of Monday, July 18. The 405 is one of LA’s busiest freeways, and the closure will impact travelers. Please allow ample travel time to/from the airport. More info and maps are available here: www.lawa.org/405. You can also receive real-time updates from our Southwest Airlines - Los Angeles Station Facebook Page.
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Today, the Mission Continues announced Southwest Airlines as their Official Airline! We couldn’t be more thrilled. Our relationship with this great organization goes back several years when it was just a budding nonprofit and the brain child of CEO Eric Greitens, a Navy SEAL. Upon his return from Iraq in 2007, Eric visited with wounded Marines at Bethesda Naval Hospital in Maryland. Eric discovered without exception, each Marine expressed an unwavering desire to continue serving his country, even if he or she could no longer do so in the military. The Mission Continues was created with a goal to build an America where every returning veteran can serve again as a citizen leader, and where together we honor the fallen by living their values through service. We recognized the great work The Mission Continues was doing with returning veterans and realized that their mission would only become more relevant in the years to come. In the past, we’ve sponsored initiatives like The Mission Continues Veterans Day Weekend, as well as fellowships. We are excited to increase our involvement with this organization. We look forward to continuing our participation with the Annual Leadership Conference in November, and we’re also looking forward to providing opportunities for our Employees to volunteer alongside The Mission Continues Fellows this fall. For more information about The Mission Continues please visit www.themissioncontinues.org. Take the The Mission Continues Challenge here!
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The latest edition of EAA Oshkosh AirVenture is just weeks away, and we want to give five lucky aviation enthusiasts the opportunity to ride on a Southwest flight directly into the Oshkosh AirVenture festival grounds. Each of those five winners gets to take a guest. Winning is as easy as registering an account with Nuts, then commenting on this post with your wittiest caption to the million dollar question: Why are all these people standing in line? Sure, we all know the real answer (they're lining up to check out one of our Boeing 737s). But we want to see just how creative you can get, with a Southwest spin, of course.. Keep it short, but make it as outlandish, funny, riveting, or unusual as possible! Again, you can post your caption in the comments section below. Make sure you are a registered blog user so we can e-mail you if you win! All blog comments must be approved by a moderator, so don't get discouraged if your comment doesn't show up right away. Be sure to read the rules below for the judging criteria. The winner will be notified by Friday 7/15/11 at 5 pm CST. OFFICIAL RULES Southwest Airlines - EAA Oshkosh AirVenture 2011 Caption Contest 1. To Enter: No purchase or obligation necessary. Contest runs July 12, 2011 from 9:00 am CST – July 14, 2011 at 5:00 pm CST. To enter without purchase or obligation, submit an original caption for the photo as a comment on Nuts About Southwest. All entries become property of the sponsor and will not be returned. Entries limited to one (1) per person. Anonymous entries will be considered invalid. You warrant your comment will not be sexually explicit, unnecessarily violent or derogatory. It cannot promote drugs, alcohol, or firearms. It cannot contain trademarks, logos or copyrighted materials owned by others. 2. Selection of Winner: On or about July 14, 2011 at 5 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. Odds of winning will depend on the total number of eligible entries received. 3. Prize: Five (5) Grand Prizes to consist of two (2) spaces on the Southwest Airlines ferry flight from Chicago (MDW) to EAA Oshkosh AirVenture 2011 on Saturday, July 30th, two (2) tickets to EAA Oshkosh AirVenture 2011, and two (2) spaces to Chicago (MDW) from EAA Oshkosh AirVenture 2011 on Saturday, July 30th. APV for Southwest Airlines ticket pairs is $800. APV for EAA Oshkosh AirVenture 2011 is $74. Grand Prize tickets are non-transferable, and winner and their guest will be required to arrive at the airport at the same time, each with a valid photo I.D.
4. Eligibility: Contest open to all legal US residents, 21 years and older as of July 12, 2011. Employees of Southwest Airlines Co., AirTran Airways, Inc., EAA Oshkosh AirVenture, 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 winner must arrange for travel to and from Chicago-Midway Airport. Unclaimed or undeliverable prize will be forfeited and awarded to an alternate winner. Prizes are not transferable or redeemable for cash. 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. Winners and their guest 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, EAA Oshkosh AirVenture, 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 July 15, 2011, to Southwest Airlines Emerging Media. All requests must be received by August 15, 2011. 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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A passenger flying to Fort Lauderdale on one of our canyon blues snapped history yesterday: the final launch of Space Shuttle Atlantis, and the end (for now) of NASA's space shuttle program. Ryan Graff glanced outside his window (which I'm going to guess was around 21A), to see the towering trail of smoke from Atlantis' rocket boosters, rising majestically from the Cape Canaveral launch pad from whence it came. Once on the ground in FLL, Ryan sent the pictures to his brother, Chad, who was nice enough to let us use them on Nuts. LUV for aviation is infectious when you work for an airline. I know yesterday's final launch of the Space Shuttle Atlantis brought tears to many of my Coworkers' eyes. It saddens me, too, though deep in my heart I know we haven't seen the last of NASA's shuttle program. Godspeed, Atlantis.
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07-09-2011
01:14 PM
664 Loves
In this lucky thirteenth edition of the SWA Stew, we go time capsule diving, which is remarkably similar to dumpster diving (I think I just sleighted history. Sorry, history). The 40th Anniversary was a very hot topic, with the capsule, turning 40 the Southwest way, and touring the nation with my new favorite band, Motopony. Speaking of the nation, this episode covers the birth of our nation, and salutes our troops. Marine Corporal Zach Briseno was the highlight of a parade that Southwest helped put on, along with our friends at HelpingAHero.org. Link LUV: Time Capsule Diving, Part 1 Time Capsule Diving, Part 2 Southwest Airlines and the Salute Our Troops Weekend Motopony: More than a Music Tour Turning 40 the Southwest Way Zach's Homecoming: A Hero's Welcome
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This holiday weekend, there's much to be thankful for in America: our many Freedoms, the Military service men and women who protect those freedoms, and being able to come together with friends and family to celebrate all of it. For me, the last few days have consisted of relaxation, catching up with family and friends, and trying to find the source of all these fireworks. Funny, the things we still do, regardless of age. As a young kid in Chicago, any time I heard a firecracker, or resounding "Pop-whistle-BOOM," I'd follow the scent like a hound chasing down a fox. I adore the fireworks, not just because of the visual aesthetics, but because of the fact you're never watching them alone. Even if someone's on the other side of a lake, or town, or wherever, fireworks are a communal thing. Our Blog Team is kind of the same - you're never alone. So I thought it'd be nice to see what Freedom means to my fellow Blog Teamers. Brooks Thomas Emerging Media Team Freedom to Enjoy it All by Timothy O'Keefe Freedom to do what you LUV is one of the greatest things we can enjoy. This weekend, I came across so many examples of Americans doing things that make them happy. I took a walk along Lake Michigan with my wife and dog Saturday morning. While we were there, people were taking advantage of the Freedom to whatever things they like. Whether these people were there to take in sun, grill, enjoy an ice cold beverage, or just be with their loved ones, Freedoms were being enjoyed by all. Freedom may mean different things to each of us. However, this holiday is an appropriate time to remember why we have the Freedoms we do. Thank someone who has served our Country. Without them and their sacrifices, we would have no Freedom to enjoy at all. Respecting Our History by Capt. Joe Gautille What does freedom mean to me? Enjoying a day to reflect on our American history and the sacrifices many have made before me to give me this day. While the 4th of July is a different national holiday than Memorial Day or Veteran's Day, it makes me think of our servicemen and women on duty around the world. It means time with family, 4th of July parades, patriotism, thankfulness for being born in the USA and respecting our history, politics, language, worshipping God, and all that makes up our American culture. Mostly I think of our Founding Fathers and the Revolutionary War period that defined our Constitution and Declaration of Independence. As a country we are far from even near perfect, but I believe the majority of Americans are appreciative of our freedoms, our way of life and our striving to be a better country, and us Southwest folks, a better airline. Happy Independence Day! What Freedom Means to Me by Annie Hoelzel On the Fourth of July, I think of those who fought for the freedom I enjoy. I have always believed that the United States is the best country in the world, and I have always been proud to call myself an American. I am thankful for our troops that preserve our freedom and country everyday from those who would hurt us without their protection. As a woman, I am especially grateful for those who fought for women everywhere during the suffrage movement. Because of them I have the freedom to be exactly where I am today, an employee at Southwest Airlines. Their perseverance has allowed me to be an independent woman and responsible for my own future. I feel it is important to celebrate this nation’s independence. We need to remember the lifestyles and living conditions our ancestors broke away from to start a new life with an unlimited future. It is no wonder that the United States is still the country with the most immigration. Everyone wants a taste of freedom. The Pride of Independence by Shannon Draper On July 1 st John Adams wrote the following letter to his wife Abigail: The second day of July, 1776, will be the most memorable epoch in the history of America. I am apt to believe that it will be celebrated by succeeding generations as the great anniversary festival. It ought to be commemorated as the day of deliverance, by solemn acts of devotion to God Almighty. It ought to be solemnized with pomp and parade, with shows, games, sports, guns, bells, bonfires, and illuminations, from one end of this continent to the other, from this time forward forever more. [6] Of course, John Adams was off by 2 days. However, in his letter he says that we should celebrate and 235 years later we are still celebrating with pomp (a show of magnificence: splendor <every day begins … in a pomp of flaming colors) The 4 th of July means to me a time of celebrating our independence, showing our pride for being an American, and showing others what America has to offer. We do this by way of picnics, baseball, and fireworks. One of my most memorable 4 th of July celebrations is when I was a little girl in Amarillo. My cousins would come from Oklahoma, California, and around Texas to visit. On the 4 th of July, early in the day, we would all get together to play baseball, cook hamburgers and hot dogs out on the grill, and eat homemade ice cream. One year my mother made coconut ice cream and the coconut froze and made it real chewy. Of course none of us wanted to say anything because we had waited all day for ice cream and we knew better than to complain. Later on in the evening, my Dad would pile us all in the 57 Chevy and take us out into the country to shoot fireworks. Of course we couldn’t shoot off the fireworks until it got dark. I can remember going in my pajamas. My sisters and cousins would set off fireworks and we would all ooh and awe. I wouldn’t get to, since I was so young, but I could hold a sparkler. Now I watch the fireworks instead of participating. I don’t have to drive to the country to set them off but sit on a blanket in a parking lot. I still enjoy the fireworks. However the displays that they have now are a lot better than the ones my sisters and cousins set off nearly 50 years ago. Happy 4 th of July! The Freedom to Vote by Krista Crow Whenever I am asked about the freedoms we have, I always think of the right to vote first. Sometimes I think we forget how important it is because we take it for granted. Here is why it holds such a special place in my heart. My Grandmother was born in England in 1921. At the age of eight she came to the United States on a ship and was processed through Ellis Island. At the age of 60, I taught her the Pledge of Alligence and she recited it to become a citizen of the United States. Her biggest reason for wanting to become a U.S. citizen? She wanted to vote. I will never forget how excited she was to vote for the first time. Ronald Regan was always her favorite president, probably because that was the first time she was actually able to vote for a president. My Grandmother voted in every election, never missing the chance to have her voice heard. Whenever I vote I always think of her. My grandmother, Florrie Kersey, waited a long time to become a citizen and earn the right to vote. I appreciate the privilege I was given to vote just by being born in the United States. A Spectacular Display by Brian Lusk My airline career began less than a month before a huge Independence Day--our 200th birthday in 1976. Delta had modified its trademark "widget" with stars and stripes on the nose of the aircraft with the slogan "We the People." In the ensuing 35 years, I've watched fireworks over San Francisco from our Oakland Ops trailer. Landing in Portland through firework-filled skies came later. In those 35 years, I've always been proud to be an American and proud of the small role I play in helping Americans travel about this great country. Really Free?! by Ally Harrington When we say the word "free," or "freedom," we throw the words around like we really know what it means. For me, I did nothing to deserve this true FREEDOM that I have. It's an amazing word - FREEDOM. I'm free to wear what I want to wear. I have the freedom to go to the Church of my choice. I have the freedom to believe in a mighty and awesome God. When I think about freedom, I think about a soldier in a foreign land. Each day that soldier is going to battle to fight for my freedom. We use the word freedom, but do we really, truly understand the full meaning of the word? Freedom to Be Me by Bill Owen To me, Freedom is the ability to be who I want to be, who I'm supposed to be, and who I am. Our country--and Southwest!--has given me an amazing ability to be who I want to be. And I LUV it! My family, friends, and church have allowed me to be who I'm supposed to be--which is always one step further than where I am, but that's the point of the journey. As for who I am....like all of us, I'm a work in progress. I’m trying to, as Oprah Winfrey taught us, "live my best life." For right now, I'm an overweight guy on blood pressure medication who likes both beer and Reality T.V. too much. But because I have the freedom to change....In my future is more evening walks than watching T.V., more iced tea and water than beer, and (hopefully) many, many more years to enjoy my life, my family, and my Employer. Happy Independence day, y'all.
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The sun kissed my face as dawn broke in my Baltimore hotel room. I'd arrived not even twelve hours earlier. Game face on. To many of you, 6:15am is probably a breeze. But the blare of my alarm usually signals bewilderment, and an inexplicable agony not shaken until I'm fully awake. This process seemingly takes years. Baltimore, in case you hadn't guessed, is where our story begins. The 40th Anniversary Tour featuring Motopony was conceived long before this early start, but nevermind that. June 29th was when we got to see if our plan worked. Our cast of characters met for the first time at BWI Airport. The complete band of misfits consisted of Southwest Airlines, our ad agency GSD&M, the band Motopony, their label rep, and our journalist buddy who came along to tell our story. Motopony circumvented Southwest's system to play two inflight shows and four in our airports. This journey took us from Baltimore through St. Louis, onto Dallas, with a short stop in San Antonio, before ending in Los Angeles. 24 hours. Two coasts. One band. I could write a short novel on the day's events and its intricacies. Those clamoring for a full synopsis can contact me directly, as I'll gladly share. The music was phenomenal. I can't say enough about the members of Motopony, for pressing on from 6:00am Eastern Time to 9:00pm Pacific, never faltering and never missing a beat. Always upbeat, in fact. And while I would encourage you to check out the videos at the bottom of this post, and see Motopony whenever they stop through, I have a completely different story to share. The band was preparing to perform on the flight to LA, and we were very unsure of the vibe. Obviously, Customer Service is paramount, and we were in the midst of a very quiet cabin. Faces forward, some eyes closed. Drink and snack service ended, and I got up to announce the band. People constantly ask about our inflight entertainment, I said on the intercom, and today we decided to do something different. Drooping heads perked up, curiosity sparked. The band unloaded its things (acoustic), and began to play. I have never seen a cabin transform so fast. Children stopped crying, passengers clapped along, people laughed or stared in awe of what was happening. I began writing this post shortly after the band concluded that inflight concert. I took a look around, saw so many smiling faces, strangers bending across aisles to share conversation. I closed my eyes to take it all in, and a soft chorus caught my ear. "B-I-N-G-O and Bingo was his name-o." Our cast of characters had teamed with Customers to sing to a little 3-year-old girl, who happily clapped along. I was lucky enough to snap a photo. By the end of the trip, I realized the power of this surprise performance: we had created a community. This event became so much more than an airline gimmick. The music brought us together. And if even a single person left thinking, "Wow, that was something I'll never forget," then we were successful. I know a little girl who looked pretty happy. Mission accomplished.
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For 72 Hours, Airline Commemorates 40 Years of LUV
with Fares as Low as $40
DALLAS—June 21, 2011 — Since 1971, the mission of Southwest Airlines (NYSE:LUV) has been to provide great Customer Service and super low fares. In honor of the airline’s 40th Anniversary, Customers can purchase one-way tickets for $40, $80, or $120 to select destinations, based on length of travel. For travel up to 450 miles, fares are $40 one-way. For travel between 451 and 1,250 miles, fares are $80 one-way. For travel more than 1,251 miles, fares are $120 one-way. These fares are available for purchase through 11:59 p.m. PDT June 23, 2011, for travel beginning Aug. 23, 2011, through Nov. 16, 2011. To see the list of available cities, prices, and to take advantage of these special fares, visit www.southwest.com. “Southwest Airlines is celebrating its 40th Anniversary with its Customers by offering even lower fares,” said Kevin Krone, Southwest Airlines Vice President of Marketing, Sales, and Distribution. “We couldn’t think of a better way to surprise and delight our Customers than with the offer to travel all over the country on Southwest’s incredibly low fares.”
Examples of these low fares include (see Fare Rules below): • $40 one-way between Philadelphia and the Boston Area
• $80 one-way between Denver and San Francisco (SFO) • $120 one-way between Baltimore/Washington and Los Angeles (LAX)
As a part of the effort to spread low fares farther through the integration of two airlines, AirTran Airways, Southwest’s wholly owned subsidiary, launched a parallel fare sale today. AirTran is celebrating Southwest’s 40 years of great service with fares as low as $40 one-way. AirTran’s fares along with terms and conditions can be found at www.airtran.com.
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 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 3,400 flights a day and has more than 35,000 Employees systemwide. FARE RULES Fares are available on www.southwest.com or www.swabiz.com. Southwest Airlines sale fares are available for purchase from June 21, 2011, through 11:59 pm PST June 23, 2011. Travel must take place between Aug. 23, 2011, and Nov. 16, 2011. Travel valid every day except Fridays and Sundays. Blackout dates apply: Sept. 1, Sept. 5 and Sept. 6, and Oct. 10, 2011. Fares do not include a federal segment tax of $3.70 per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 and U.S. government-imposed September 11th Security Fee of up to $5.00 one-way. Seats are limited and may not be available on all flights or to all destinations. Fares are available for one-way travel. Fares are nonrefundable but may be applied toward the purchase of future travel on Southwest Airlines. When rebooking a previously purchased Wanna Get Away fare, any fare difference will remain nonrefundable and the remaining funds will be held for future use. Fares are not available through the Group Desk. Any change in the itinerary may result in an increase in fare. Reservations made through southwestvacations.com are not eligible for this promotion. Standby travel requires an upgrade to the Anytime Fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only. www.southwest.com Media Please Contact: Southwest Airlines Public Relations at 214-792-4847
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06-10-2011
09:58 PM
515 Loves
Summer weather has Christi in jean shorts (only you can't see them) for this edition of the SWA Stew. Also, we showcase our Denver Day of Rock winner, new service to Newark, and other sweet morsels. But the big milestone in this episode is about going green. Something Laurel and Marilee can hang their hats on, along with plenty of other Green Teamers.
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CONTACT: Investor Relations (214) 792-4415
DALLAS, TEXAS – June 7, 2011 – Southwest Airlines Co. (NYSE: LUV) today reported May 2011 traffic results for Southwest Airlines and AirTran Airways. AirTran Airways 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 Airways for periods prior to the acquisition date. See the accompanying tables for combined and individual results.
The Company flew 9.2 billion revenue passenger miles (RPMs) in May 2011, compared to 8.3 billion combined RPMs flown in May 2010, an increase of 10.6 percent. Available seat miles (ASMs) increased 4.2 percent to 11.1 billion from the May 2010 combined level of 10.7 billion. The load factor for the month was 82.7 percent, compared to the combined load factor of 77.9 percent in May 2010.
For May 2011, Southwest Airlines’ passenger revenue per ASM (excluding AirTran Airways) is estimated to have increased in the 11 to 12 percent range as compared to May 2010.
For the first five months of 2011, the Company flew 41.7 billion combined RPMs, compared to 38.0 billion combined RPMs flown for the same period in 2010, an increase of 9.9 percent. The combined year-to-date ASMs increased 6.5 percent to 52.4 billion, compared to the combined level of 49.2 billion for the same period in 2010. The combined year-to-date load factor was 79.6 percent, compared to the combined load factor of 77.2 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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06-03-2011
01:14 PM
616 Loves
Going retro back to 1971 (but not like our April Fool's video), honoring our fallen heroes, spreading Southwest magic, and much more. It's the 11th creation of the SWA Stew! The usual peanut gallery, of course, makes it into the background. Oh, and I didn't make fun of Caleb this week. SWA Stew: Sure to make a fool out of me and you (but mostly me). Link LUV: From Inside the Eye Caring for the Lost Heroes Art Quilt #1971 Photo Contest Denver Contest Winner Showcasing Southwest Spirit in the Magic Kingdom
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