I am a frequent business traveler flying between Pittsburgh and Philadelphia. I have been a very loyal user of Southwest Airlines. I am exceptionally disappointed in your decision to discontinue service between Pittsburgh and Philadelphia. You should not eliminate all flights. One early in the morning and one late in the day or evening would be sufficient. Now, I will have to convert over to USAir for both business and vacation travel, as we also used Southwest to go to Florida as a family periodically. A disappointed customer, Jerry DeRosa.
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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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You guys always seem like you're having a lot of fun, which is great...but these video posts always seem like an inside joke for the 3 or45 people on & off camera...so why post them on a public blog?
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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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stagflation: when inflation is high, but economic growth is low.. thus, the economy has stagnated. Can't wait for you to be flying through the ATL! I've been waiting FOREVER for this!
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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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After the long flight to Oshkosh, many arriving in their small homebuilt aircraft are coming to terms with their decision not to go to the bathroom before they took off.
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As I said in my "share this" tweet a few moments ago, you can't plan shots like this :-)
Kudos to the PAX that was luck enough to take this picture.
Paul in CRP
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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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I celebrated the 4th of July with my family at a restaurant just accross the street. Enjoyed it so much, and had to run some minor business as usual. The smell of my favorite wine, for me it was freedom. I didn't worry about how much it cost. So many classic red wines for sale, but only had to grab just one.
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I'm NUTS about these videos!
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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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My son thinks you are crazy! But I told him, you are! LUV the STEW!
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05-27-2011
05:02 PM
705 Loves
At long last, the long-awaited (by few) return of the SWA Stew! In this longer-than-normal episode, we tackle the reason behind the delay, a salute to our troops, rockin' Denver, and Mary, the trailblazing Flight Attendant. Oh, and some minor self-indulgence by the likes of myself. Link LUV: Denver Day of Rock Holiday Travel Alert Saluting Our Troops Flight Attendant for the Day One LUV
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St. Louis Business Journal - by Mark Harden
Date: Thursday, May 26, 2011, 2:19pm CDT
Southwest Airlines, Lambert-St. Louis International Airport's busiest carrier, is the most generous U.S. airline when it comes to redeeming frequent flier miles, according to a new study.
The study was compiled by consulting firm IdeaWorks Co. and is cited in Scott McCartney's "The Middle Seat" column in the Wall Street Journal.
Twenty-four airlines were rated on how often they award free tickets in response to website inquiries on redeeming frequent-flier miles. IdeaWorks evaluated the carriers by making 6,720 web requests for a standard-mileage award.
Dallas-based Southwest awarded free seats 99.3 percent of the time, the study showed. Worldwide, only Brazil's GOL awarded seats more often — 100 percent of the time.
United Airlines ranked third in the U.S. and 11th worldwide for its frequent-flier generosity, with an award rate of 71.4 percent, according to the IdeaWorks study.
The stingiest carriers in the world? According to the study, the worst is US Airways, with an award rate of 25.7 percent, followed by Delta Air Lines, at 27.1 percent.
The average award rate for U.S. airlines was 68.6 percent, up from last year's 66.1 percent rate.
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On August 25th my son answered a phone call saying I had won. Since I wasn't home, he told them to call back today. No one called today. Is it true? Did I win a trip? And if I did, what's next. Thank you.
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I have been flying Southwest for 30 years and I have been amazed at how the airline has been able to maintain it flyer-centric attitude. I can't remember a time when I encountered a grumpy, grouchy Southwest employee; I can't say that about your competition. Keep up the great service and the company culture.
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Panic washed over me as I stepped onto the jet bridge in Baltimore. Indeed, producing a three-to-five minute video was well within photographer Terry and my skill sets. I am often quick to remind people about my News background (old habits die hard). Terry's eye for video is unrivaled (check's in the mail, Terry).
But this was undiscovered country.
Tackling the feelings surrounding an airline acquisition carries with it a large degree of uncertainty. Are we welcome? Do we stick out like sore thumbs? Would our 48-hour tour through Baltimore, Orlando, and back to Dallas end in cheers, or tears?
Alas, if you've watched the video that accompanies this post, our story has a very happy ending.
We conducted dozens of interviews with Employees from both AirTran and Southwest. Each person I met put me more at ease.
The stories are endless.
In Baltimore, an AirTran Employee and Southwest Employee who live near one another and go to the same pool will now be working alongside one another. They're ecstatic about it.
Cliff, from Orlando, frequently manages the ticket counter lines. He'll soon have even more Passengers to greet with his never-ending enthusiasm.
And Chuck came to Southwest through our acquisition of Morris Air. 18 years later, he's still here. His advice for AirTran Employees is, "Be yourself, and keep an open mind." Indeed, you may find yourself looking back 20 years from now, wondering where the time went.
Everyone's excited about the opportunity to spread Low Fares Farther, and becoming an even bigger Family.
The legal marriage of these two airlines is only the beginning of something far greater.
Terry and I got the chance to see it firsthand. In all, we captured more than two hours of footage. I've never seen so many gushing compliments in my life. But this is Nuts, not Cannes. So here's the video: bottled up into a little more than three minutes.
One LUV, y'all!
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DALLAS, TEXAS – April 21, 2011 – Southwest Airlines (NYSE:LUV) today reported
first quarter 2011 net income of $5 million, or $.01 per diluted share, compared to net income of $11 million, or $.01 per diluted share, for first quarter 2010. 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, first quarter 2011 results included approximately
$9 million in charges (net of profitsharing and taxes) primarily related to consulting fees in association with the Company’s proposed acquisition of AirTran Holdings, Inc.* Excluding special items in both periods, first quarter 2011 net income was $20 million, or $.03 per diluted share, compared to $24 million, or $.03 per diluted share, for first quarter 2010. Operating income was $114 million for first quarter 2011, compared to $54 million for first quarter 2010. Excluding special items in both periods, operating income was $110 million for first quarter 2011, compared to
$102 million for first 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, “While escalating jet fuel prices and inclement weather challenged our first quarter profitability, our People prevailed. We are very pleased to report first quarter 2011 operating income of $110 million and net income of $20 million (each excluding special items). Record monthly load factors, combined with solid passenger revenue yields, resulted in a 17.8 percent
year-over-year increase in passenger revenues. Passenger unit revenues increased almost nine percent, compared to first quarter last year, representing the sixth consecutive quarter of record passenger unit revenues. Since first quarter 2007, passenger unit revenues have increased 34 percent. Other operating revenues also grew a healthy 26.7 percent, compared to a year ago, largely due to growth in our EarlyBird Check-In TM revenues, which nearly doubled. All in all, a solid start to our 40 th year of service.”
Based on bookings and revenue trends thus far, the Company expects another solid unit revenue improvement in second quarter 2011*, even with the continuation of difficult
year-over-year comparisons.
First quarter 2011 unit costs, excluding special items, increased 9.2 percent from
first quarter 2010, mostly due to a 26.5 percent year-over-year increase in economic fuel costs per gallon. First quarter 2011 economic fuel costs of $2.96 per gallon included $13 million, or $0.03 per gallon, in unfavorable cash settlements for fuel derivative contracts. Based on the Company’s second quarter 2011 fuel hedge position and market prices (as of April 19 th ),
second quarter 2011 economic fuel costs*, including fuel taxes, are estimated to be approximately $3.35 per gallon, which includes $0.04 per gallon in favorable cash settlements for fuel derivative contracts. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.
Excluding fuel and special items in both periods, first quarter 2011 unit costs increased
1.9 percent from first quarter 2010, as anticipated. Based on current cost trends, the Company expects the year-over-year increase in its second quarter 2011 nonfuel unit costs*, excluding special items, will exceed first quarter 2011’s year-over-year increase, largely due to advertising related to the launch of its All-New Rapid Rewards® program. However, full year 2011 nonfuel unit costs*, excluding special items, currently are estimated to increase approximately
two percent from 2010.
In the first quarter, the Company was able to grow revenues sufficient to cover soaring jet fuel prices. Traffic and revenue trends remained strong, offsetting the impact of a
36.7 percent year-over-year increase in first quarter 2011 economic fuel and oil expense. For 2011*, the Company is planning to increase its available seat mile capacity in the five to six percent range, as compared to 2010, primarily as a function of increased aircraft utilization. However, given the current outlook of continually rising jet fuel prices, the Company is planning cautiously for 2012.
Kelly continued, “First quarter 2011 was very active for Southwest, and it was very gratifying. After years in development, we launched our All-New Rapid Rewards ® program. Growth in our program has been strong and surpassed our system averages. We launched new service to Charleston and Greenville-Spartanburg airports very successfully. Those markets have been underserved and overpriced, and we were welcomed enthusiastically by the people of South Carolina. We jumped at the opportunity to acquire slots and terminal facilities in Newark, where we also were warmly welcomed when we launched service there last month. Much progress was made towards the 2012 introduction of the Boeing 737-800 model to our fleet. Finally, we made tremendous progress in our integration planning for the acquisition of AirTran Airways. I am very proud of what our hard-working People accomplished already in 2011.
“With the overwhelming approval of AirTran stockholders in March, we are ready to move forward with the closing of the transaction, now planned for May 2 nd . We anticipate that all regulatory approvals needed to move forward will be obtained by that date. We look forward to that milestone day, first and foremost, to finally welcome the AirTran Crew Members to the Southwest family. Together, we can then begin the exciting work to integrate AirTran into Southwest.”
On September 27, 2010, Southwest Airlines announced a definitive agreement to acquire all of the outstanding common stock of AirTran Holdings, Inc., the parent company of AirTran Airways (AirTran), for a combination of cash and Southwest Airlines’ common stock. The acquisition will significantly expand Southwest Airlines’ low-fare service to many more Customers in many more domestic markets. Moreover, the transaction has the potential to yield net annual synergies of more than $400 million by 2013. Excluding one-time acquisition and integration costs estimated to be approximately $500 million, the transaction is expected to be accretive to Southwest’s fully-diluted earnings per share within the first twelve months following the close of the transaction, and strongly accretive, thereafter, upon full realization of the estimated net synergies.
“Operationally, the Employees of Southwest Airlines exhibited their exceptional resilience to successfully manage over 3,000 flight cancellations from weather interruptions in the first quarter,” stated Kelly. “It is their resolve to provide outstanding Customer Service that continues to gain us honors and recognition, such as recently being named the fourth most admired Company in the world in FORTUNE magazine’s 2011 survey of corporate reputations.”
Other Southwest Airlines’ recognitions and honors include:
Voted best low-cost carrier in North America by Business Traveler Magazine subscribers Recently ranked fifth and most improved in the 2010 Airline Quality Rating compiled by Purdue University and Wichita State University Named the 2011 Customer Service Champion by J.D. Powers based on customer feedback regarding service excellence Named Brand of the Year in Harris Poll EquiTrend’s airline category based on equity, customer connection, commitment, brand behavior, brand advocacy, and trust Ranked third in the Top 10 Business Thought Leaders by TLG Communications southwest.com received first place for Best Overall Customer Experience in the Keynote Competitive Research Industry Study examining U.S. Air Travel Websites Named Airline of the Year by Express Delivery and Logistics Association, the tenth consecutive year for Southwest Airlines Cargo to receive the recognition; also awarded for Excellence in Web Site and Technology for the second year in a row Southwest Cargo was also named Domestic Carrier of the Year for 2011 by the Airforwarders Association for the second consecutive year and was recently recognized for excellence in Air Cargo World’s annual Air Cargo Excellence (ACE) Survey Recognized by PR News with several awards including the 2011 PR News Corporate Responsibility Awards for Diversity Communications, the Corporate Social Responsibility Award for Best Report, and honorable mention for the Social Corporate Responsibility Award for Corporate/Nonprofit Partnership Recently ranked first among North American airlines and fourth in the world among 65 global airlines in GreenHorizon Aviation’s 2010 World Airline Environmental Rankings for excellent environmental performance and initiatives Named the Greenest Airline by ClimateCounts.org based on the review and reduction of company environmental impact, policy stance, and public information available
Southwest will discuss its first quarter 2011 results on a conference call at 12:30 p.m. Eastern Time today. A live broadcast of the conference call will also be available at southwest.com/investor_relations.
Operating Results
Total operating revenues for first quarter 2011 increased 18.0 percent to $3.1 billion, compared to $2.6 billion for first quarter 2010. Total first quarter 2011 operating expenses were $3.0 billion, compared to $2.6 billion in first quarter 2010. Operating income for first quarter 2011 was $114 million, compared to $54 million in first quarter 2010. Excluding special items in both periods, operating income was $110 million for first quarter 2011 compared to $102 million for
first quarter 2010. The Company’s return on invested capital (before taxes and excluding special items) was approximately ten percent for the twelve months ended March 31, 2011, compared to approximately five percent for the twelve months ended March 31, 2010. Additional information regarding pretax return on invested capital is included in the accompanying reconciliation tables.
“Other expenses” increased to $96 million in first quarter 2011 from $37 million in
first quarter 2010. The $59 million increase in total other expenses primarily resulted from
$29 million in “other losses” recognized in first quarter 2011 versus $27 million in “other gains” recognized in first quarter 2010. In both periods, these “other gains/losses” primarily resulted from unrealized gains/losses associated with the Company’s fuel hedging program. “Other losses, net” also included premium costs associated with the Company’s fuel derivative contracts of $31 million in both first quarter 2011 and first quarter 2010.
The Company’s effective tax rate was approximately 72 percent in first quarter 2011 compared to 35 percent in first quarter 2010. The higher rate in first quarter 2011 primarily was due to a $5 million increase in income tax expense from an IRS settlement during first quarter 2011 related to tax years 2007 through 2009, and a $2 million increase from a State of Illinois tax law change that occurred during the first quarter 2011. The Company projects a full year 2011* effective tax rate of approximately 40 percent based on currently forecasted financial results.
Net cash provided by operations for first quarter 2011 was $965 million, and capital expenditures were $57 million, resulting in over $900 million in free cash flow. In addition to a fully available, unsecured, revolving credit facility of $600 million, the Company currently has over $4 billion in cash and short-term investments.
* The closing of the proposed acquisition of AirTran is anticipated to occur on May 2, 2011. Forward looking commentary in this release and the accompanying tables including, but not limited to, revenues, costs, fuel consumption, fleet, and available seat miles for 2011 and beyond, excludes any potential impact of the acquisition.
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 expectations with respect to its future results of operations; (ii) its plans and expectations related to managing risk associated with changing jet fuel prices; (iii) its growth expectations, including fleet and capacity plans and expectations; and (iv) its expectations related to its anticipated acquisition of AirTran, including the expected timing and benefits of the acquisition. 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) actions of competitors, including without limitation pricing, scheduling, and capacity decisions, and consolidation and alliance activities; (v) the Company’s ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vi) the Company’s dependence on third parties to assist with implementation of certain of its initiatives; (vii) the impact of governmental regulations on the Company’s operations; (viii) the possibility that the Company’s proposed acquisition of AirTran is delayed or does not close, including due to the failure of closing conditions; (ix) the Company’s ability to successfully integrate AirTran’s business and realize the expected synergies from the transaction; and (x) 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, and in the Company’s registration statement on Form S-4 filed with the Securities and Exchange Commission that includes a proxy statement of AirTran that also constitutes a prospectus of the Company.
Three months ended March 31, Percent 2011 2010 Change OPERATING REVENUES: Passenger $ 2,939 $ 2,495 17.8 Freight 31 30 3.3 Other 133 105 26.7 Total operating revenues 3,103 2,630 18.0 OPERATING EXPENSES: Salaries, wages, and benefits 954 864 10.4 Fuel and oil 1,038 821 26.4 Maintenance materials and repairs 199 166 19.9 Aircraft rentals 46 47 (2.1) Landing fees and other rentals 201 190 5.8 Depreciation and amortization 155 154 0.6 Other operating expenses 396 334 18.6 Total operating expenses 2,989 2,576 16.0 OPERATING INCOME 114 54 111.1 OTHER EXPENSES (INCOME): Interest expense 43 41 4.9 Capitalized interest (3) (5) (40.0) Interest income (3) (3) - Other (gains) losses, net 59 4 n.a. Total other expenses 96 37 159.5 INCOME BEFORE INCOME TAXES 18 17 5.9 PROVISION FOR INCOME TAXES 13 6 116.7 NET INCOME $ 5 $ 11 (54.5) NET INCOME PER SHARE: Basic $ 0.01 $ 0.01 Diluted $ 0.01 $ 0.01 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 748 743 Diluted 749 744
Three Months Ended March 31, Percent 2011 2010 Change Fuel and oil expense, unhedged $ 1,044 $ 730 Add/(Deduct): Fuel hedge (gains) losses included in Fuel and oil expense (6) 91 Fuel and oil expense, as reported $ 1,038 $ 821 Add/(Deduct): Net impact from fuel contracts (1) 19 (48) Fuel and oil expense, economic $ 1,057 $ 773 36.7 Total operating expenses, as reported $ 2,989 $ 2,576 Add/(Deduct): Net impact from fuel contracts (1) 19 (48) Total operating expenses, economic $ 3,008 $ 2,528 Add: Charge for AirTran integration costs, net (2) (15) - Total operating expenses, non-GAAP $ 2,993 $ 2,528 18.4 Operating income, as reported $ 114 $ 54 Add/(Deduct): Net impact from fuel contracts (1) (19) 48 Operating income, economic $ 95 $ 102 Add: Charge for AirTran integration costs, net (2) 15 - Operating income, non-GAAP $ 110 $ 102 7.8 Other (gains) losses, net, as reported $ 59 $ 4 Add/(Deduct): Net impact from fuel contracts (1) (29) 27 Other losses, net, non-GAAP $ 30 $ 31 (3.2) Income before income taxes, as reported $ 18 $ 17 Add/(Deduct): Net impact from fuel contracts (1) 10 21 $ 28 $ 38 Add: Charge for AirTran integration costs, net (2) 15 - Income before income taxes, non-GAAP $ 43 $ 38 13.2 Net income, as reported $ 5 $ 11 Add/(Deduct): Net impact from fuel contracts (1) 10 21 Income tax impact of fuel contracts (4) (8) $ 11 $ 24 Add: Charge for AirTran integration costs, net (3) 9 - Net income, non-GAAP $ 20 $ 24 (16.7) Net income per share, diluted, as reported $ 0.01 $ 0.01 Add/(Deduct): Net impact from fuel contracts - 0.02 $ 0.01 $ 0.03 Add: Impact of special items, net (3) 0.02 - Net income per share, diluted, non-GAAP $ 0.03 $ 0.03 n.a. (1) See Reconciliation of Impact from Fuel Contracts (2) Amounts net of profitsharing impact (3) Amounts net of profitsharing impact and taxes
Three Months Ended March 31, 2011 2010 Fuel & Oil Expense Add/(Deduct): Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts $ 2 $ 4 Add/(Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period* 17 (52) Impact from fuel contracts to Fuel & Oil Expense $ 19 $ (48) Operating Income Add/(Deduct): Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts $ (2) $ (4) Add/(Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period* (17) 52 Impact from fuel contracts to Operating Income $ (19) $ 48 Other (gains) losses Add/(Deduct): Mark-to-market impact from fuel contracts settling in future periods $ 3 $ 27 Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods (30) 4 Add/(Deduct): Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts (2) (4) Impact from fuel contracts to Other (gains) losses $ (29) $ 27 Net Income Add/(Deduct): Mark-to-market impact from fuel contracts settling in future periods $ (3) $ (27) Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods 30 (4) Add/(Deduct): Other net impact of fuel contracts settling in the current or a prior period (excluding reclassifications) (17) 52 Impact from fuel contracts to Net income ** $ 10 $ 21 * As a result of prior hedge ineffectiveness and/or contracts marked-to-market through earnings ** Excludes income tax impact of unrealized items
Percent of estimated fuel consumption covered by fuel derivative contracts Average WTI Crude Oil Full Year price per barrel 2Q 2011 2011 Up to $90 approx. 60% approx. 65% $90 to $95 approx. 45% approx. 50% $95 to $110 approx. 35% approx. 30% (2) $110 to $120 approx. 35% approx. 45% Above $120 approx. 30% approx. 40% Estimated difference in economic jet fuel price per gallon, above/(below) unhedged market prices, including taxes Average WTI Crude Oil Full Year price per barrel 2Q 2011 2011 $85 $0.10 $0.08 $100 ($0.03) ($0.01) $109 (1) ($0.04) ($0.05) $115 ($0.06) ($0.05) $130 ($0.16) ($0.16) Percent of estimated fuel consumption covered by fuel derivative contracts at Full Year varying WTI crude-equivalent price levels 2011 approx. 30% (2) 2012 approx. 60% (3) 2013 over 50% 2014 over 40% * All forward-looking information in this schedule excludes any potential impact of the Company's anticipated acquisition of AirTran. (1) Based on the current WTI forward curve and current market prices as of April 19, 2011 and current estimated fuel consumption covered by fuel derivative contracts, second quarter 2011 economic fuel price per gallon, including taxes, is estimated to be approximately $3.35 per gallon, or four cents below market prices. (2) Based on the current WTI forward curve as of April 19, 2011, the Company has approximately 30% of estimated 2011 fuel consumption covered at current market prices by fuel derivative contracts. If prices settle between $110 and $120 per barrel, the estimated 2011 fuel consumption covered by fuel derivative contracts increases to approximately 45%, and if prices settle above $120 per barrel, the coverage decreases to 40%. (3) For 2012, the Company has approximately 60% of estimated fuel consumption covered by fuel derivative contracts up to a crude-equivalent price of $130 per barrel. If prices settle between $130 and $145 per barrel, the estimated fuel consumption covered by fuel derivative contracts decreases to approximately 30%, and if prices settle above $145 per barrel, the coverage decreases to less than 10%.
12 Months Ended 12 Months Ended March 31, 2011 March 31, 2010 Operating Income, as reported $ 1,047 $ 367 Add/(Deduct): Net impact from fuel contracts 105 189 Add: AirTran acquisition costs, net (1) 21 56 Operating Income, non-GAAP $ 1,173 $ 612 Net adjustment for aircraft leases (2) 81 93 Adjustment for fuel hedge accounting (134) (147) Adjusted Operating Income, non-GAAP $ 1,120 $ 558 Average Invested Capital (3) $ 10,599 $ 9,990 Equity adjustment for fuel hedge accounting 305 668 Adjusted Average Invested Capital $ 10,904 $ 10,658 . ROIC, pretax 10% 5% (1) Amounts shown net of profitsharing impact (2) Net adjustment related to presumption that all aircraft in fleet are owned (3) Average invested capital represents a five quarter average of debt, net present value of aircraft leases, and equity
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 other non-GAAP financial measures as a result of items that the Company believes are not indicative of its ongoing operations. These include a first quarter 2011 charge of $17 million (before the impact of profitsharing and/or taxes) related to expenses associated with the Company's planned acquisition 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 current or prior periods that did not include such items and as a basis for expecting operating results in future periods.
Three Months Ended March 31, 2011 2010 Change Revenue passengers carried 21,115,115 19,976,835 5.7 % Enplaned passengers 25,599,118 23,694,464 8.0 % Revenue passenger miles (RPMs) (000s) 19,195,885 17,161,713 11.9 % Available seat miles (ASMs) (000s) 24,505,674 22,619,460 8.3 % Load factor 78.3 % 75.9 % 2.4 pts Average length of passenger haul (miles) 909 859 5.8 % Average aircraft stage length (miles) 656 633 3.6 % Trips flown 273,823 261,892 4.6 % Average passenger fare $ 139.18 $ 124.90 11.4 % Passenger revenue yield per RPM (cents) 15.31 14.54 5.3 % RASM (cents) 12.66 11.63 8.9 % PRASM (cents) 11.99 11.03 8.7 % CASM (cents) 12.20 11.39 7.1 % CASM, excluding fuel (cents) 7.97 7.76 2.7 % CASM, excluding special items (cents) 12.21 11.18 9.2 % CASM, excluding fuel and special items (cents) 7.91 7.76 1.9 % Fuel costs per gallon, including fuel tax (unhedged) $ 2.93 $ 2.21 32.6 % Fuel costs per gallon, including fuel tax $ 2.91 $ 2.49 16.9 % Fuel costs per gallon, including fuel tax (economic) $ 2.96 $ 2.34 26.5 % Fuel consumed, in gallons (millions) 356 329 8.2 % Active fulltime equivalent Employees 35,452 34,637 2.4 % Aircraft in service at period-end 550 541 1.7 % RASM (unit revenue) - Operating revenue yield per ASM PRASM (Passenger unit revenue) - Passenger revenue yield per ASM CASM (unit costs) - Operating expenses per ASM
March 31, December 31, 2011 2010 ASSETS Current assets: Cash and cash equivalents $ 2,039 $ 1,261 Short-term investments 2,426 2,277 Accounts and other receivables 282 195 Inventories of parts and supplies, at cost 320 243 Deferred income taxes - 214 Prepaid expenses and other current assets 262 89 Total current assets 5,329 4,279 Property and equipment, at cost: Flight equipment 14,090 13,991 Ground property and equipment 2,153 2,122 Deposits on flight equipment purchase contracts 172 230 16,415 16,343 Less allowance for depreciation and amortization 5,919 5,765 10,496 10,578 Other assets 589 606 $ 16,414 $ 15,463 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 916 $ 739 Accrued liabilities 827 863 Air traffic liability 1,710 1,198 Current maturities of long-term debt 905 505 Total current liabilities 4,358 3,305 Long-term debt less current maturities 2,428 2,875 Deferred income taxes 2,496 2,493 Deferred gains from sale and leaseback of aircraft 85 88 Other non-current liabilities 460 465 Stockholders' equity: Common stock 808 808 Capital in excess of par value 1,186 1,183 Retained earnings 5,399 5,399 Accumulated other comprehensive income (loss) 79 (262) Treasury stock, at cost (885) (891) Total stockholders' equity 6,587 6,237 $ 16,414 $ 15,463
Three months ended March 31, 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5 $ 11 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 155 154 Unrealized loss on fuel derivative instruments 10 21 Deferred income taxes 28 12 Amortization of deferred gains on sale and leaseback of aircraft (3) (3) Changes in certain assets and liabilities: Accounts and other receivables (87) (67) Other current assets (92) (18) Accounts payable and accrued liabilities 238 (85) Air traffic liability 512 356 Cash collateral received from fuel derivative counterparties 29 5 Other, net 170 (13) Net cash provided by operating activities 965 373 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment, net (57) (139) Purchases of short-term investments (1,484) (1,380) Proceeds from sales of short-term investments 1,310 1,197 Net cash used in investing activities (231) (322) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Employee stock plans 4 12 Proceeds from termination of interest rate derivatives 76 - Payments of long-term debt and capital lease obligations (30) (60) Payments of cash dividends (7) (7) Other, net 1 - Net cash provided by (used in) financing activities 44 (55) NET CHANGE IN CASH AND CASH EQUIVALENTS 778 (4) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,261 1,114 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,039 $ 1,110
The Boeing Company -700 -800 Purchase Previously Firm Firm Options Rights Owned Total 2011 18 - - - 2 20 (1) 2012 - 20 - - - 20 2013 19 - 6 - - 25 2014 21 - 6 - - 27 2015 14 - 1 - - 15 2016 17 - 7 - - 24 2017 - - 17 - - 17 Through 2021 - - - 98 - 98 Total 89 (2) 20 37 98 2 246 * All forward-looking information in this schedule excludes any potential impact of the Company's anticipated acquisition of AirTran. (1) Includes six aircraft delivered through April 20, 2011. (2) The Company is evaluating substituting 737-800s in lieu of 737-700 firm orders currently scheduled for 2013 through 2016.
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DALLAS — April 14, 2011— Earlier today, the respective Unions representing Southwest Airlines and AirTran Airways Pilots, as well as both Companies signed a Four-Party Process Agreement that provides for the two pilot groups to begin their seniority integration discussions prior to legal closing of the AirTran acquisition. It also outlines provisions of an implementation schedule in the event an agreement is reached on an integrated seniority list (ISL). Southwest anticipates closing on its acquisition of AirTran Airways in second quarter of 2011.
“This is yet another important step in the overall process of bringing these two great carriers together,” said Mike Van de Ven, Southwest Airlines Executive Vice President and Chief Operating Officer. “I applaud both sides for signing this important agreement that lays the groundwork for bringing together these two hard working Pilot groups.”
The Southwest Airlines Pilots’ Association (SWAPA) and the Air Line Pilots’ Association (ALPA) can now begin the work of integrating seniority lists in accordance with the McCaskill-Bond Act. This new Four-Party Process Agreement also creates a timeline for SWAPA and ALPA to reach an ISL agreement. If an agreement is not reached during this timeframe, the matter will be sent to arbitration and a new implementation process will have to be negotiated.
After nearly 40 years 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, now serving 72 cities in 37 states. Southwest also 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 nearly 35,000 Employees systemwide.
Southwest Airlines Media Contact: 214-792-4847
www.southwest.com
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DALLAS—April 14, 2011—Southwest Airlines Cargo was recognized for excellence in Air Cargo World’s annual Air Cargo Excellence (ACE) Survey as the winner of the “up to 199,999 tonnes” category. In addition, Southwest Airlines Cargo received the highest overall rating across all weight divisions and was the highest rated carrier in three of the four performance categories: Customer Service, Performance, and Value.
“We are very proud to receive this prestigious recognition, which is a testament to the hard work and dedication of many Southwest Airlines Employees across our system,” said Southwest Airlines Vice President of Cargo and Charters Matt Buckley. “We truly appreciate that our dedication to excellence continues to be recognized by our valued Customers.”
The ACE Survey, established six years ago and published annually by Air Cargo World, acknowledges Cargo Carriers for achievements in air cargo excellence in four key areas: Customer Service, Performance, Information Technology, and Value. The ACE rankings are based on a survey conducted by Air Cargo World of more than 300 members of the airline and freight forwarding industries.
Southwest Airlines’ Relentlessly Reliable Employees offer Cargo Customers expedited air cargo service to more than 90 destinations across the map, including complimentary Road Feeder Service and interline destinations. With more than 200 million pounds of available cargo lift domestically per month, Southwest is proud to operate a majority of their Cargo Facilities from coast-to-coast, providing Customers with award-winning Customer Service.
In its 40 th year of service, Southwest Airlines (NYSE: LUV) 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, now serving 72 cities in 37 states. Southwest also 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/citizenship to read the Southwest Airlines One Report™. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has nearly 35,000 Employees systemwide.
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04-08-2011
06:13 PM
1,018 Loves
We take a break from our usual format to address Flight 812 and Southwest's dedication to Safety.
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DALLAS, TEXAS – April 7, 2011 -- Southwest Airlines Co. (NYSE: LUV) announced today that the Company flew 7.3 billion revenue passenger miles (RPMs) in March 2011, a 9.8 percent increase from the 6.7 billion RPMs flown in March 2010. Available seat miles (ASMs) increased 8.9 percent to 9.0 billion from the March 2010 level of 8.2 billion. The load factor for the month was 81.6 percent, compared to 81.0 percent for the same period last year. For March 2011, passenger revenue per ASM is estimated to have increased in the eight to nine percent range compared to March 2010. For the first quarter of 2011, Southwest flew 19.2 billion RPMs, compared to 17.2 billion RPMs flown for the same period in 2011, an increase of 11.9 percent. Available seat miles increased 8.3 percent to 24.5 billion from the 2010 level of 22.6 billion. The year-to-date load factor was 78.3 percent, compared to 75.9 percent for the same period last year. This release, as well as past news releases on Southwest, is available online at southwest.com. CONTACT: Investor Relations (214) 792-4415
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DALLAS, TX — April 7, 2011 — Southwest Airlines said today that it has completed all aircraft inspections in accordance with the Federal Aviation Administration (FAA) Airworthiness Directive (AD) that was released on Tuesday, April 5. The airline began operating a normal schedule Tuesday morning and does not anticipate the directive impacting the schedule moving forward.
During the airline’s thorough inspections of aircraft this week, minor subsurface cracking was found on five Southwest aircraft which will remain out of service until Boeing’s recommended repairs are complete. As of today, Boeing has provided repair instructions for all five of the impacted aircraft, which includes the removal and replacement of an 18-inch section of the lap joint. Southwest’s Maintenance and Engineering Department has begun the repair process, with each repair taking 8 to 16 hours to complete. The airline anticipates returning four of the five aircraft back into service by Saturday (pending the appropriate FAA approvals), with one aircraft remaining in previously scheduled maintenance. The incident aircraft has been released by the National Transportation Safety Board (NTSB) but the airline does not have a repair update at this time.
Based on information from the NTSB investigation and inspections performed since the event, Boeing has asked operators of certain 737-300/-400/-500 airplanes at or above 30,000 flight cycles to inspect certain lap joints. Although Southwest does operate a small number of 737-500 aircraft, the FAA’s Airworthiness Directive focuses on a particular set of 737-500 airplanes which are not included in the Southwest fleet.
“Now that our inspections are complete and the FAA has issued an AD for the rest of the world-wide 737 fleet, our focus shifts to completing the repairs and getting the aircraft back into service,” said Mike Van de Ven, Southwest's Executive Vice President and Chief Operating Officer. “Our event, though obviously not what we would want to happen, is ultimately working to improve the effectiveness of 737 inspections and maintenance programs world-wide.”
After the April 1 incident, Southwest immediately and voluntarily discontinued flying a portion of the Boeing 737-300s in its fleet prior to any government or manufacturer mandate.
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