Southwest Airlines Community

 By JEFF BAILEY Published: May 6, 2008 The big cities that Southwest Airlines has invaded in recent years — San Francisco, Denver, Pittsburgh, Philadelphia and Washington by way of Dulles International Airport — all happen to be air travel markets that were dominated by either United Airlines or US Airways… To read the remainder of this article, visit http://www.nytimes.com/2008/05/06/business/06air.html?partner=rssnyt&emc=rss ... View more

  In honor of Cinco De Mayo, our friends over at Gadling.com are hosting a contest with a chance to win two roundtrip tickets on Southwest Airlines.  Simply leave a comment with the city you'd most like to visit if you win, and they will randomly draw one winner by this Friday.   To enter, or for more information, visit Gadling.com. ... View more

Southwest Airlines Reports April Traffic DALLAS, May 5 /PRNewswire-FirstCall/ -- Southwest Airlines Co. (NYSE: LUV) announced today that the Company flew 6.3 billion revenue passenger miles (RPMs) in April 2008, a 5.7 percent increase from the 5.9 billion RPMs flown in April 2007. Available seat miles (ASMs) increased 5.3 percent to 8.6 billion from the April 2007 level of 8.2 billion. The load factor for the month was 72.6 percent, compared to 72.3 percent for the same period last year. For the four months ended April 30, 2008, Southwest flew 23.9 billion RPMs, compared to the 22.0 billion RPMs recorded for the same period of 2007, an increase of 8.3 percent. Available seat miles increased 6.1 percent to 33.8 billion from the 2007 level of 31.9 billion. The year-to-date load factor was 70.5 percent, compared to 69.1 percent for the same period last year. This release, as well as past news releases on Southwest, are available online at http://www.southwest.com/?src=INVRINVAPTR000000080505. SOUTHWEST AIRLINES CO. PRELIMINARY COMPARATIVE TRAFFIC STATISTICS APRIL 2008 2007 CHANGE Revenue passengers carried 7,663,814 7,378,668 3.9 % Enplaned passengers 8,794,398 8,434,977 4.3 % Revenue passenger miles (000) 6,261,385 5,921,988 5.7 % Available seat miles (000) 8,625,382 8,189,481 5.3 % Load factor 72.6% 72.3% 0.3 pts. Average length of haul 817 803 1.7 % Trips flown 100,307 95,668 4.8 % YEAR-TO-DATE 2008 2007 CHANGE Revenue passengers carried 29,169,236 27,339,601 6.7 % Enplaned passengers 33,503,013 31,338,050 6.9 % Revenue passenger miles (000) 23,853,543 22,031,059 8.3 % Available seat miles (000) 33,818,819 31,867,856 6.1 % Load factor 70.5% 69.1% 1.4 pts. Average length of haul 818 806 1.5 % Trips flown 395,097 372,568 6.0 % SOURCE Southwest Airlines Co. CONTACT: Investor Relations of Southwest Airlines Co., +1-214-792-4415 ... View more

    DALLAS, April 17 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV) today reported its first quarter 2008 results. Net income for first quarter 2008 was $34 million, or $.05 per diluted share, compared to $93 million, or $.12 per diluted share, for first quarter 2007. Excluding special items, first quarter 2008 net income was $43 million, or $.06 per diluted share, compared to $33 million, or $.04 per diluted share, in first quarter 2007. The first quarter 2008 results exceed First Call's mean estimate of $.01 per diluted share. Refer to the reconciliation in the accompanying tables for further information regarding special items. First Quarter 2008 Financial Highlights: -- Record first quarter revenues of $2.53 billion, up 15 percent -- Net income, excluding special items, of $43 million, up 30 percent -- Net income per diluted share, excluding special items, of $.06, up 50 percent Gary C. Kelly, CEO, stated: "Considering the weak economy and soaring jet fuel prices, we are very pleased to report a 30 percent year-over-year increase in first quarter 2008 earnings, excluding special items. Our earnings growth resulted from record first quarter 2008 operating revenues of $2.53 billion, which increased a strong 15.1 percent from a year ago, or 8.2 percent on an available seat mile (ASM) basis. Benefiting from the Easter shift to March this year (versus April last year), this was the best quarterly performance since second quarter 2006. With our new revenue initiatives well underway, our load factor of 69.8 percent was a record first quarter performance, and our passenger yields per revenue passenger mile (RPM) were up 4.7 percent compared to first quarter 2007. "Taking into account the Easter shift to March, traffic thus far in April has been solid, and bookings for the remainder of second quarter 2008 appear strong. Barring a further slowdown in the domestic economy, based on current trends, which include encouraging results from our revenue initiatives and the airline industry's domestic capacity outlook, we expect favorable year-over-year unit revenue results again in second quarter 2008. "While we are pleased with our revenue performance, we are concerned about soaring energy costs. Our first quarter 2008 unit costs, excluding special items, increased 7.3 percent due largely to the significant increase in our economic jet fuel costs. Even with $302 million in favorable cash settlements from derivative contracts, our first quarter 2008 economic jet fuel costs increased 20.7 percent to $1.98 per gallon. We have derivative contracts in place for approximately 70 percent of our second quarter 2008 estimated fuel consumption, capped at an average crude-equivalent price of approximately $51 per barrel. Based on this derivative position and yesterday's market prices, we currently anticipate our second quarter 2008 economic jet fuel costs will be in the $2.35 per gallon range, significantly higher than first quarter even with anticipated hedging gains significantly higher than first quarter. For the full year 2008, we have derivative contracts for over 70 percent of our estimated fuel consumption at an average crude-equivalent price of approximately $51 per barrel. "Our first quarter 2008 unit costs, excluding fuel, increased 2.4 percent over last year, which was better than we anticipated. Based on current cost trends, we expect our second quarter 2008 unit costs, excluding fuel, to increase from first quarter 2008's 6.70 cents. "Although we are pleased with the progress of our revenue initiatives and optimistic that we can continue to grow revenues, we cannot ignore the threat of volatile and unprecedented jet fuel prices. We will continue to take steps to restore our profit margins, including an ongoing rigorous review of our flight schedule to eliminate nonproductive flying. Presently, we still plan to accept 29 new Boeing 737-700s in 2008, but we are reviewing our previous plan to retire 22 aircraft in light of this month's dramatic industry developments. We have flexibility to adjust our fleet plans and are well-positioned to respond to a rapidly changing environment. "For 2009, we have decided to reduce our fleet growth. Prior to today's announcement, we had 28 737-700 aircraft (25 firm and three options) scheduled for delivery from Boeing in 2009. Our revised plan is to grow our fleet in 2009 by no more than 14 737-700 aircraft, which is half our previous plan, assuming no retirements, and will bring our 2009 year-over-year ASM capacity growth to two to three percent. As a result of this change, 14 aircraft deliveries (11 firm and three options) have been deferred to 2015. We have also moved 12 2010 deliveries into 2013-2015 (one option in 2013, eight options in 2014, and three options in 2015). Further, we have exercised a total of 12 options with Boeing for delivery in 2010-2012 (six firm in 2010, three firm in 2011, and three firm in 2012), bringing our firm orders for 2008 through 2015 to 125. We now have 67 options, with delivery positions available in 2010 through 2015, and 54 purchase rights for delivery through December 31, 2018 (see accompanying Revised 737-700 Delivery Schedule)." Southwest will discuss its first quarter 2008 results on a conference call at 11:30 a.m. Eastern Time today. A live broadcast of the conference call will be available at http://www.southwest.com/?src=INVRINVFQPR000000080417. Operating Results Total operating revenues for first quarter 2008 increased 15.1 percent to $2.53 billion, compared to $2.20 billion for first quarter 2007. Total first quarter 2008 operating expenses were $2.44 billion, compared to $2.11 billion in first quarter 2007. Operating income for first quarter 2008 was $88 million compared to $84 million in first quarter 2007. Excluding special items, operating income was $99 million in first quarter 2008 compared to $70 million last year. "Other expenses" were $51 million for first quarter 2008, compared to $65 million in "other income" for first quarter 2007. The $116 million swing resulted primarily from $23 million in "other losses" recognized in 2008 versus $83 million in "other gains" recognized in 2007. In both periods, these "other (gains) losses" principally resulted from unrealized gains/losses associated with Statement of Financial Accounting Standard (SFAS) 133, "Accounting for Derivative Instruments and Hedging Activities," as amended. The cost of the hedging program (which includes the premium costs of derivative contracts) of $14 million in first quarter 2008 and first quarter 2007 is also included in "other (gains) losses." The $10 million year-over-year increase in net interest expense for first quarter 2008 resulted from lower interest rates on cash, cash equivalents, and investments and lower Boeing aircraft progress payments, which generated reduced capitalized interest. The first quarter 2008 income tax rate was approximately 9 percent compared to approximately 38 percent for first quarter 2007. The significant decrease in first quarter 2008's income tax rate was primarily due to a decrease in first quarter deferred tax liability by approximately $12 million as a result of a January 2008 reversal by the State of Illinois of an August 2007 increase under a State of Illinois income tax law. Net cash provided by operations for first quarter 2008 was $964 million, which included a $570 million increase in fuel derivative collateral deposits related to future periods. Capital expenditures for the first quarter 2008 were $364 million. On January 17, 2008, the Company's Board of Directors authorized a new share repurchase program to acquire up to $500 million of the Company's common stock, of which $54 million (4.4 million shares of common stock) was purchased during first quarter 2008. The Company has not repurchased any common stock since February 15, 2008 and currently does not believe it is prudent to repurchase shares considering today's unstable financial markets and soaring fuel prices. The Company ended first quarter 2008 with $3.1 billion in cash and short-term investments, which included $2.6 billion in fuel derivative cash collateral deposits. In addition, the Company had a fully available unsecured revolving credit line of $600 million. 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 relating to (i) the Company's expectations regarding future results of operations; and (ii) its plans for fleet growth. 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) the price and availability of aircraft fuel; (ii) the Company's ability to timely and effectively prioritize its revenues initiatives and its related ability to timely implement and maintain the necessary information technology systems and infrastructure, and other techniques and processes to support these initiatives; (iii) the impact of governmental regulations and inquiries on the Company's operating costs, as well as its operations generally; and (iv) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007. SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF INCOME (in millions, except per share amounts) (unaudited) Three months ended March 31, Percent 2008 2007 Change OPERATING REVENUES: Passenger $2,414 $2,112 14.3 Freight 34 30 13.3 Other 82 56 46.4 Total operating revenues 2,530 2,198 15.1 OPERATING EXPENSES: Salaries, wages, and benefits 800 767 4.3 Fuel and oil 753 564 33.5 Maintenance materials and repairs 143 136 5.1 Aircraft rentals 38 39 (2.6) Landing fees and other rentals 171 136 25.7 Depreciation and amortization 145 135 7.4 Other operating expenses 392 337 16.3 Total operating expenses 2,442 2,114 15.5 OPERATING INCOME 88 84 4.8 OTHER EXPENSES (INCOME): Interest expense 28 29 (3.4) Capitalized interest (8) (13) (38.5) Interest income (7) (13) (46.2) Other (gains) losses, net 38 (68) n.a. Total other expenses (income) 51 (65) n.a. INCOME BEFORE INCOME TAXES 37 149 (75.2) PROVISION FOR INCOME TAXES 3 56 (94.6) NET INCOME $34 $93 (63.4) NET INCOME PER SHARE: Basic $.05 $.12 Diluted $.05 $.12 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 733 786 Diluted 734 800 SOUTHWEST AIRLINES CO. RECONCILIATION OF REPORTED AMOUNTS TO NON-GAAP ITEMS (SEE NOTE) (in millions, except per share amounts) (unaudited) Note regarding use of non-GAAP financial measures The financial results provided in this news release "excluding special items" are non-GAAP results that are provided as supplemental information. These results should not be relied upon as alternative measures to Generally Accepted Accounting Principles (GAAP) and primarily reflect items calculated on an "economic" basis, which excludes certain items that are recorded as a result of SFAS 133, "Accounting for Derivative Instruments and Hedging Activities," as amended. Items calculated on an "economic" basis consist of gains or losses for derivative instruments that settled in the current accounting period, but were either recognized in a prior period or will be recognized in a future period in GAAP results. The items excluded from economic results primarily include ineffectiveness, as defined, for future period instruments, and changes in market value for future period derivatives that no longer qualify for special hedge accounting, as defined in SFAS 133. The special items referred to in this news release also reflect adjustments for other special items that management believes it should take into consideration to more accurately measure and monitor the Company's comparative performance on a consistent basis; therefore, management wants to provide the transparency to Investors regarding its views as to a more accurate reflection of the Company's on-going operations. The Company's management utilizes both the GAAP and the non-GAAP results in this news release to evaluate the Company's performance and believes that comparative analysis of results can be enhanced by excluding the impact of the unrealized items. In part, since fuel expense is such a large part of the Company's operating costs and is subject to extreme volatility, the Company believes it is useful to provide Investors with the Company's true economic cost of fuel for the periods presented, based on cash settlements from hedging activities, but excluding the unrealized impact of hedges that will settle in future periods or were recognized in prior periods. Three Months Ended March 31, Percent 2008 2007 Change Fuel and oil expense - unhedged $1,044 $643 Less: Fuel hedge gains included in fuel and oil expense (291) (79) Fuel and oil expense - GAAP $753 $564 33.5 Add/(Deduct): Net impact from fuel contracts (1) (11) 14 Fuel and oil expense - economic $742 $578 28.4 Operating income, as reported $88 $84 Add/(Deduct): Net impact from fuel contracts (1) 11 (14) Operating income, non-GAAP $99 $70 41.4 Other (gains) losses, net, as reported $38 $(68) Add/(Deduct): Net impact from fuel contracts (1) (23) 83 Other (gains) losses, net, non-GAAP $15 $15 n.a. Net income, as reported $34 $93 Add/(Deduct): Net impact from fuel contracts (1) 34 (97) Income tax impact of fuel contracts (13) 37 $55 $33 (Deduct): Change in Illinois state income tax law, net (12) - Net income, non-GAAP $43 $33 30.3 Net income per share, diluted, as reported $.05 $.12 Add/(Deduct): Net impact from fuel contracts (1) .02 (.08) $.07 $.04 Add: Impact of special items, net (.01) - Net income per share, diluted, non-GAAP $.06 $.04 50.0 (1) See Reconciliation of Impact from Fuel Contracts SOUTHWEST AIRLINES CO. RECONCILIATION OF IMPACT FROM FUEL CONTRACTS (SEE PREVIOUS NOTE) (in millions, except per share amounts) (unaudited) Three Months Ended March 31, 2008 2007 Fuel & Oil Expense Add/(Deduct): Impact from current period settled contracts included in Other (gains) losses, net $16 $(4) Add/(Deduct): Fuel contract impact recognized in earnings in prior or future periods for contracts settling in the current period (27) 18 Impact from fuel contracts to Fuel & Oil Expense $(11) $14 Operating Income Add/(Deduct): Impact from current period settled contracts included in Other (gains) losses, net $(16) $4 Add/(Deduct): Fuel contract impact recognized in earnings in prior or future periods for contracts settling in the current period 27 (18) Impact from fuel contracts to Operating Income $11 $(14) Other (gains) losses Add/(Deduct): Mark-to-market impact from fuel contracts settling in future periods $(7) $85 Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods - (6) Add/(Deduct): Impact from current period settled contracts included in Other (gains) losses, net (16) 4 Impact from fuel contracts to Other (gains) losses $(23) $83 Net Income Add/(Deduct): Mark-to-market impact from fuel contracts settling in future periods $7 $(85) Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods - 6 Add/(Deduct): Fuel contract impact recognized in earnings in prior or future periods for contracts settling in the current period 27 (18) Impact from fuel contracts to Net Income * $34 $(97) * Excludes income tax impact of unrealized items SOUTHWEST AIRLINES CO. COMPARATIVE CONSOLIDATED OPERATING STATISTICS (unaudited) Three months ended March 31, 2008 2007 Change Revenue passengers carried 21,504,821 19,960,933 7.7% Enplaned passengers 24,708,615 22,903,073 7.9% Revenue passenger miles (RPMs) (000s) 17,592,159 16,109,071 9.2% Available seat miles (ASMs) (000s) 25,193,437 23,678,376 6.4% Load factor 69.8% 68.0% 1.8 pts. Average length of passenger haul (miles) 818 807 1.4% Average aircraft stage length (miles) 627 627 0.0% Trips flown 294,790 276,900 6.5% Average passenger fare $112.24 $105.79 6.1% Passenger revenue yield per RPM (cents) 13.72 13.11 4.7% Operating revenue yield per ASM (cents) 10.04 9.28 8.2% CASM, GAAP (cents) 9.69 8.93 8.5% CASM, GAAP excluding fuel (cents) 6.70 6.54 2.4% CASM, excluding special items (cents) 9.65 8.99 7.3% CASM, excluding fuel and special items (cents) 6.70 6.54 2.4% Fuel costs per gallon, excluding fuel tax (unhedged) $2.79 $1.82 53.3% Fuel costs per gallon, excluding fuel tax (GAAP) $2.01 $1.60 25.6% Fuel costs per gallon, excluding fuel tax (economic) $1.98 $1.64 20.7% Fuel consumed, in gallons (millions) 373 352 6.0% Fulltime equivalent Employees at period-end 33,895 32,962 2.8% Size of fleet at period-end 527 489 7.8% CASM (unit costs) - Operating expenses per ASM SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED BALANCE SHEET (in millions) (unaudited) March 31, December 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $2,982 $2,213 Short-term investments 140 566 Accounts and other receivables 350 279 Inventories of parts and supplies, at cost 265 259 Fuel derivative contracts 1,248 1,069 Prepaid expenses and other current assets 65 57 Total current assets 5,050 4,443 Property and equipment, at cost: Flight equipment 13,408 13,019 Ground property and equipment 1,555 1,515 Deposits on flight equipment purchase contracts 541 626 15,504 15,160 Less allowance for depreciation and amortization 4,413 4,286 11,091 10,874 Other assets 1,890 1,455 $18,031 $16,772 LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $787 $759 Accrued liabilities 3,756 3,107 Air traffic liability 1,198 931 Current maturities of long-term debt 40 41 Total current liabilities 5,781 4,838 Long-term debt less current maturities 2,079 2,050 Deferred income taxes 2,611 2,535 Deferred gains from sale and leaseback of aircraft 103 106 Other deferred liabilities 272 302 Stockholders' equity: Common stock 808 808 Capital in excess of par value 1,212 1,207 Retained earnings 4,811 4,788 Accumulated other comprehensive income 1,492 1,241 Treasury stock, at cost (1,138) (1,103) Total stockholders' equity 7,185 6,941 $18,031 $16,772 SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) (unaudited) Three months ended March 31, 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $34 $93 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 145 135 Deferred income taxes (5) 42 Amortization of deferred gains on sale and leaseback of aircraft (3) (4) Share-based compensation expense 5 13 Excess tax benefits from share-based compensation arrangements - (29) Changes in certain assets and liabilities: Accounts and other receivables (70) (37) Other current assets 26 (56) Accounts payable and accrued liabilities 616 383 Air traffic liability 267 210 Other, net (51) (133) Net cash provided by operating activities 964 617 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment, net (364) (325) Purchases of short-term investments (1,221) (914) Proceeds from sales of short-term investments 1,459 968 Net cash used in investing activities (126) (271) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Employee stock plans 11 78 Payments of long-term debt and capital lease obligations (19) (9) Payments of cash dividends (7) (7) Repurchase of common stock (54) (209) Excess tax benefits from share-based compensation arrangements - 29 Net cash used in financing activities (69) (118) NET INCREASE IN CASH AND CASH EQUIVALENTS 769 228 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,213 1,390 CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,982 $1,618 SOUTHWEST AIRLINES CO. REVISED BOEING 737-700 DELIVERY SCHEDULE AS OF APRIL 17, 2008 Purchase Firm Options Rights Total 2008 29 29 * 2009 14 14 2010 16 6 22 2011 13 19 32 2012 13 27 40 2013 19 1 20 2014 10 8 18 2015 11 6 17 Through 2018 54 54 Total 125 67 54 246 * Currently plan to reduce fleet by 22 aircraft, bringing 2008 net additions to seven. SOURCE Southwest Airlines CONTACT: Investor Relations of Southwest Airlines, +1-214-792-4415 ... View more

We receive tons of requests and suggestions each year for ”specialty” aircraft, which is what we call any aircraft not painted in our traditional Canyon Blue livery. In fact, just last week, my friend Dave Cynkin suggested we wrap an aircraft with the faces of bloggers and fly it to Las Vegas for this year's BlogWorld Expo. I praised his creativity - I love people who think big - but let him know it was an unlikely proposition. In addition to the time and effort required, each of the ”specialty” aircraft in our fleet is carefully designed to honor a long-standing and significant relationship with the state, organization, or...er...whale...it represents. And, today, our CEO, Gary Kelly, and founder, Herb Kelleher, were at Chicago Midway Airport to honor just such a relationship. Say hello to the newest member of our fleet... Illinois One. This brand new Boeing 737-700 unveiled today at Chicago Midway Airport features a rendering of the Illinois state flag and required 26 people at the Boeing Company working three shifts over the course of six days to paint. More than 93 gallons of paint and 10 different colors make up Illinois One. Check out the aircraft being built and painted in this video. Illinois One joins twelve other ”specialty” aircraft in our fleet that carry unique paint schemes: Arizona One, California One, Lone Star One (Texas), Nevada One, New Mexico One, Maryland One, three Shamu aircraft (SeaWorld), Silver One (celebrating Southwest's 25 th anniversary), Triple Crown One (recognizing Southwest's top rankings for ontime performance, baggage handling, and Customer satisfaction), and Slam Dunk One (tribute to our NBA partnership). That count actually comes to thirteen if you include the ”Classic” paint scheme which will remain on three of our aircraft - N711HK, N714CB, and N792SW. Illinois One honors a relationship built over 23 years. Since we launched service in 1985, Chicago has grown to become one of our largest operations with 227 daily nonstop departures to 47 cities.  In addition to our airport operations at Midway, we have a Pilot Base, an Inflight Base, a District Marketing Office, a Maintenance Facility, a Provisioning Base, a Reservations Center, and a People Department Office there.   More than 3,700 of our Employees now call Chicago home. The Eagle has landed at Chicago Midway.  I hope you have the chance to see it landing at an airport near you.  Welcome to the family, Illinois One!   ... View more

Institutional Investor Magazine recently conducted surveys to identify America's Best CEOs and CFOs for 2008. The results told us what we already knew: Gary Kelly topped the list as the #1 CEO in the airline sector, and Laura Wright took top honors as the #1 CFO in the airline sector. Most of you know Gary, but for those of you that don't know Laura, allow me to introduce you. As CFO for Southwest Airlines, Laura is responsible for our overall finance activities including reporting, accounting, investor relations, treasury/tax, fleet planning, insurance, and Employee compensation and benefits. She reports directly to Gary and works with a team of more than 450 Employees to make sure that Southwest maintains its strong financial position and low-cost advantage. Laura earned both a Bachelors and a Masters of Science in Accounting from the University of North Texas in 1982. Additionally, she is a Certified Public Accountant in the State of Texas. Prior to joining Southwest, she was a Tax Manager with Arthur Young & Company in Dallas, Texas. Since 1988, when she became a part of the Southwest Family, she has held the positions of Director Corporate Taxation, Director Corporate Finance, Assistant Treasurer, Treasurer, and Vice President Finance and Treasurer. That's the technical stuff, but below are 19 interesting facts about Laura that we were able to dig up with the help of her Executive Assistant, Pam Liebrum (thanks, Pam!): 1. Her twin sister, Linda, is her best friend, and they had a double wedding. 2. She was born in Colorado, grew up in Nebraska, and finished high school in East Texas. 3. She won her class spelling bee almost every year, and usually won her grade level spelling bee. The only year she didn't win was in second grade–she misspelled the word "ribbon." (She's still mad about it!!) She was the County Spelling Bee Champion in the 8th grade. 4. She could stand on her head for hours as a kid. Literally, she was timed. 5. She worked as an Intern for Ernst & Whitney, and worked for Arthur Young after college - the same firm that our CEO, Gary Kelly, and COO, Mike Van de Ven, had previously worked for. 6. She played the flute when she was in school. 7. Her first car was a Ford Maverick. 8. Her first job was during high school in the bookkeeping department at a bank. 9. She talks to herself in the shower. 10. She runs on her toes. 11. She ran eight miles a day in college, regardless of the weather. 12. She played softball and was a star pitcher. She always made the All-star Team. 13. She graduated from the University of North Texas in only four and a half years with both her Bachelors and Masters degrees. 14. She was President of her sorority in college. 15. She passed all four parts of her CPA exam the first time she took it, her Junior year of college. (She hadn't even had all her accounting classes yet!) 16. She is a sports fan, and the Nebraska Cornhuskers are her favorite Team. 17. She is married to Randy and they have two children, Lindsay and Jeff. 18. She met her husband in college– he was a graduate student and a cost accounting teacher. 19. Her hobbies include traveling and spending time with her kids and family. Congratulations to Gary and Laura – We're very fortunate to have such talented and respected Leaders! ... View more

The following statement was just issued regarding Southwest Airline's continued internal maintenance audit.  SOUTHWEST AIRLINES CONTINUES INTERNAL INVESTIGATION AND AUDIT Airline Makes the Decision to Temporarily Remove 38 Aircraft from Scheduled Service DALLAS - March 12, 2008 - Yesterday, Southwest Airlines CEO Gary Kelly said the airline is taking action on preliminary findings of its own internal investigation into allegations that it violated FAA regulations in March 2007. Kelly vowed to make any changes necessary to ensure that the airline is in full compliance with FAA Airworthiness Directives and all of its own maintenance programs, policies, and procedures.  During last night's review by Southwest of its maintenance records, the airline discovered an ambiguity related to required testing. Southwest made the decision to take a conservative approach and remove aircraft out of scheduled service. Southwest immediately began reinspecting those aircraft. A total of 44 aircraft were affected-one was already retired, five were in maintenance for scheduled checks, and the remaining 38 were removed from scheduled service. Southwest's decision to remove aircraft from service resulted in approximately four percent of today's Southwest flights being canceled. Due to good weather conditions, the decision caused minimal schedule disruptions and the airline is running more than 90 percent ontime. A portion of the aircraft have been inspected, cleared, and returned to service. The airline expects to have all of these aircraft inspected by early this evening. The ongoing internal review of Southwest's maintenance programs, policies, and procedures could potentially create other operational changes if the airline needs to swap or reroute aircraft as the internal investigation and audit unfolds. "Again, we are mindful that during Southwest's 37-year proud history, we have safely transported the population of the United States-every man, woman, and child-four and a half times over. This is a fact. We have been a safe Company. I believe we are a safe Company. I am committed to making sure we become safer still," said Southwest CEO Gary Kelly. ... View more

The following statement was just issued regarding our preliminary investigations into allegations that Southwest Airlines violated FAA regulations in March 2007. SOUTHWEST AIRLINES RESPONDS TO PRELIMINARY FINDINGS OF ITS INTERNAL INVESTIGATION DALLAS--March 11, 2008--Southwest Airlines CEO Gary Kelly said today the airline is taking action on preliminary findings of its own internal investigation into allegations that it violated FAA regulations in March 2007. Kelly has vowed to make any changes necessary to assure that the airline is in full compliance with FAA Airworthiness Directives and all of its own maintenance programs, policies, and procedures.  "Upon learning last month of an investigation with respect to our handling of this inspection and an Airworthiness Directive, I immediately ordered an independent and comprehensive investigation by outside counsel," Kelly said. Last week, we accelerated the internal investigation after Southwest received details from the FAA's letter of civil penalty. On March 10, Kelly was given preliminary findings from the internal investigation. "I am concerned with some of our findings as to our controls over procedures within our maintenance airworthiness directive and regulatory compliance processes," Kelly said. "I have insisted that we have the appropriate maintenance organizational and governance structure in place to ensure that the right decisions are being made." Based on those findings, Southwest has: Placed three Employees on administrative leave. Those Employees are cooperating with the investigation. Hired a respected outside consultant with proven experience to help review its maintenance program controls, especially Airworthiness Directive (AD) compliance. Fully engaged with the FAA on its current audit of Southwest and committed to FAA leadership that it will investigate and address any deficiencies in its maintenance controls. "These are important and necessary steps," Kelly said. "At the same time, we are mindful that during Southwest's 37-year proud history, we have safely transported the population of the United States-every man, woman, and child-four and a half times over. This is a fact. We have been a safe Company. I believe we are a safe Company. I am committed to making sure we become safer still."     ... View more

Friends - Many of you are writing to us concerned about today's news reports regarding the safety and inspections of Southwest Airlines' aircraft.  Let me assure you, first and foremost, that no one is more passionate about the safety of our Customers and Employees than we are, and it is important for you all to know that the situation being reported in the media was never and is not now a safety of flight issue. The FAA has issued what is called a "letter of penalty" to Southwest Airlines regarding one of many routine, redundant, and overlapping inspections of our fleet.  The specific inspection in question involves an extremely small area in one of many overlapping inspections designed to detect early signs of skin cracking on our aircraft.   In March 2007, Southwest Airlines discovered a missed inspection area, disclosed the information to the FAA, and promptly reinspected all of our potentially affected aircraft. The FAA approved our actions at that time and considered the matter closed as of April 2007.  The Boeing Company, which manufactures all of our aircraft, also supported our aggressive compliance plan, and has issued a statement confirming that we acted responsibly and, more importantly, that the safety of our fleet was not compromised.   The FAA has concerns about the inspection process, which we are willing and eager to work with them to resolve.  Receipt of the FAA's letter of penalty gives us the opportunity to present both our case and the facts, which we feel will support our actions taken back in March 2007. We assure you that this issue never compromised the safety of our fleet.  Southwest has an excellent maintenance program, with more Boeing 737 aircraft experience than any carrier in the world.  Safety is, has always been, and will always will be our number one priority.  ... View more

Brace yourselves everyone...it's that time again..."The Official Southwest Airlines Semi-Annual Peanut-Transition." (Now that I've given it a name, I'm thinking I might make a T-shirt and sell it in the lobby of our Headquarters here in Dallas.  That idea might be especially funny to anyone who works here, as there is a new T-shirt for sale every week...but that's a whole other blog post...now, back to peanuts...) Every six months or so we switch from dry roasted to honey roasted peanuts, giving us all the opportunity to debate the merits of each style of nut and rehash old peanut stories.  Six years ago, I was working in our Customer Relations Department responding to Customer letters.  It was my first job with Southwest Airlines, and a job that many of us internally refer to as "Southwest Boot Camp" - not because it's especially strenuous, but because it's a job that allows you to learn a tremendous amount about the Company in a very short period of time.  Every Customer letter we receive, in turn, receives a researched and personal response from someone like me - no form letters here, folks!  In fact, many Customer Relations "graduates" can recall with great pride the way they were able to reslove a specific Customer's dilemma with a level of compassion and grace that only someone intimately involved in the situation could.  I can recall several situations of my own like that...the woman whose eye glasses fell in the "lav" while she was cleaning red wine off of her brand new, white, Ralph Lauren suit with a can of club soda and a maxi pad (our Flight Attendants know all kinds of tricks).  Or the Customer who, over the phone, turned me into a Hangar One Vodka fan for life (it wasn't until just now that I realized the airline connection).   And, I will never forget one letter in particular regarding our honey roasted peanuts: August 31, 2001 Dear Sir or Madam: As a constant passenger on your Los Angeles to Oakland run, I have kept a particular question to myself for sometime now.  However, frustration has finally gotten the better of me, and I simply must ask.  What happened to the honey-roasted peanuts? All you serve now are those high in sodium, salted-nuts.  Sure, you give everyone two packets of them, but I'd much rather have one package of honey-roasted peanuts over twelve packages of salted-peanuts.  Hell, I'd rather have one package of honey-roasted peanuts over a small Not-For-Resale package of Oreos.              My physician has told me that I have way too much sodium in my diet as it stands, so that's the reason for my being so adamant about the subject at hand.  Is there a way to (much like the people order kosher meals prior to take-off) for me to order a package of honey-roasted peanuts instead of salted ones? Sincerely, David Paulson P.S.  - I have nothing against Oreos, just in case you guys have anything to do with manufacturing those cookies.  But when you're on a plane and don't have a mirror to look into, Oreos are the worst thing to eat...you end up with black speckles wedged in throughout your smile.  At the time I received this letter, I had only been a Southwest Employee for about four months and had just made my way through training.  I wrote a nice response explaining where the honey-roasted peanuts had gone, but my Supervisor, sent me back to the drawing board to produce a more thoughtful response.  November 16, 2001 Dear Mr. Paulson;             Thank you for your letter of August 31.  I am sorry to learn of your disappointment with our onboard peanut selection.  As a frequent flyer myself, I have often wondered, "What happened to the honey roasted peanuts?" I too prefer honey roasted peanuts to just plain old salted nuts and can certainly understand your dilemma.  Typically, we rotate the types of peanuts we serve from honey roasted to salt roasted on a semi-annual basis.  However, in an effort to cut costs following the events of September 11, we will be holding off on honey roasted peanuts until at least the end of the year.  Of course, our Customers are always welcome to carry their "goodies of choice" onboard with them, and I have taken the liberty of enclosing a couple of bags for you to take along on your next trip.              Thanks for taking the time to share your thoughts with us.  Your business is truly appreciated, and we will look forward to serving you honey roasted peanuts again in the future.                                                                                     Sincerely,                                                                                     Paula Berg Enclosure:  Honey Roasted Peanuts To my surprise, I received a letter from a Mr. Paul Davidson, aka Mr. Paulson, several months later asking permission to publish my response in a book called Consumer Joe - Harassing corporate America, One Letter at a Time.  I signed, and you can now read my letter (see page 47)...and at least 100 others...in Paul Davidson's Book. Note:  Normally we have a 30-day turn around on Customer letters, but September 11 occurred just days after we received "Mr. Paulson's" letter, so we were, understandably, behind. Also Note:  If you have plans to fly on us and have any sort of peanut allergy, please know that a)  we offer pretzels as an alternative snack, and b) if you call our reservations line at 1-800-I-Fly-SWA and notify us of your allergy, we will make every effort to keep peanuts off of your flight.  ... View more