Southwest Airlines Community

SOUTHWEST AIRLINES ADDS EXTRA FLIGHTS FOR PRESIDENTIAL INAUGURATION Airline offers more service into Baltimore/Washington and Washington Dulles DALLAS—Nov. 21, 2008— Following a record voter turnout, demand is high to attend the inaugural celebration!  To meet the increased demand in key cities, Southwest Airlines is adding 26 total flights into and out of both Baltimore/Washington and Washington Dulles between Jan. 17, 2009, and Jan. 23, 2009. “Flights are filling up and Southwest Airlines wants to offer our Customers more service into the DC area for the inauguration celebration,” said Pete McGlade, Southwest Airlines Vice President of Schedule Planning.  “We carefully combed through our flight schedule and were able to add these flights from key cities into both Baltimore/Washington and Washington Dulles during peak travel times.” The additional inauguration flights are listed below:             Jan. 17, 2009: ·         One nonstop departure from Austin to Baltimore/Washington. ·         One nonstop departure from Birmingham to Baltimore/Washington. ·         One nonstop departure from Houston Hobby to Baltimore/Washington. ·         One nonstop departure from Chicago Midway to Washington Dulles. ·         One nonstop departure from St. Louis to Baltimore/Washington.   Jan. 18, 2009: ·         One nonstop departure from Baltimore/Washington to Austin. ·         One nonstop departure from Baltimore/Washington to Birmingham. ·         One nonstop departure from Baltimore/Washington to Houston Hobby. ·         One nonstop departure from Baltimore/Washington to St. Louis. ·         One nonstop departure from St. Louis to Baltimore/Washington. ·         One nonstop departure from Washington Dulles to Chicago Midway. ·         One nonstop departure from Chicago Midway to Washington Dulles.   Jan. 19, 2009: ·         One nonstop departure from Baltimore/Washington to St. Louis. ·         One nonstop departure from Washington Dulles to Chicago Midway. ·         One nonstop departure from Chicago Midway to Washington Dulles.   Jan. 20, 2009: ·         One nonstop departure from Kansas City to Baltimore/Washington. ·         One nonstop departure from Chicago Midway to Baltimore/Washington. ·         One nonstop departure from Washington Dulles to Chicago Midway. ·         One nonstop departure from Chicago Midway to Washington Dulles.   Jan. 21, 2009: ·         One nonstop departure from Baltimore/Washington to Kansas City. ·         One nonstop departure from Baltimore/Washington to Chicago Midway. ·         One nonstop departure from Washington Dulles to Chicago Midway. ·         One nonstop departure from Chicago Midway to Washington Dulles. ·         One nonstop departure from San Diego to Baltimore/Washington.   Jan. 22, 2009: ·         One nonstop departure from Washington Dulles to Chicago Midway. ·         One nonstop departure from Baltimore/Washington to San Diego.     Southwest is the only U.S. airline to remain consistently profitable this decade, and enjoys an unprecedented string of 35 consecutive years of profitability.  Southwest has among the lowest cost structures, a strong balance sheet, and the most productive Employees of any major U.S. airline.  At Southwest Airlines, fees don’t fly with us.  You can check your first two bags for free (size and weight limits apply), there are no change fees, no fees for a window or aisle seat, and, as always, snacks, sodas, and smiles are all complimentary! After 37 years of service, Southwest Airlines, the nation’s leading low-fare carrier, continues to differentiate itself from other airlines—offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience.  Southwest offers a very comfortable ride with all premium leather seats and plenty of legroom with a young all Boeing 737 fleet.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 35,000 Employees systemwide.       www.southwest.com   ... View more

Southwest Airlines Declares 129th Consecutive Quarterly Dividend 11/20/2008 1:00:00 PM DALLAS, Nov. 20 -- Southwest Airlines' (NYSE: LUV) Board of Directors declared a quarterly dividend of $.0045 per share to Shareholders of record at the close of business on December 11, 2008 on all shares then issued and outstanding.  The 129th consecutive dividend will be paid on January 8, 2009.   ... View more

Southwest airlines APPOINTS two new members to board of directors   DALLAS—Nov. 20, 2008— The Southwest Airlines Board of Directors today appointed Daniel D. Villanueva and John Denison to the Board. For photos of Villanueva and Denison please click here: http://gallery.swamedia.com/photos/kw=08SWABOD Villanueva is a partner in RC Fontis, a California-based private equity firm. Villanueva previously was Managing Partner of Bastion Capital Corporation, a private equity investment fund. Currently, he serves on the Boards of Metropolitan West Funds, Citibank (Banamex USA), and Fleetwood Enterprises, Inc. Villanueva spent 25 years in the broadcasting business as a television executive with Spanish International Communications Corp., and its successor company, Univision. He previously served on the Boards of Univision Network, Telemundo Network, 7UP Bottling of Southern California, and Film Roman, a California-based animation studio. Denison has a long history in the airline industry. He previously served in an executive capacity with Global Aero Logistics Inc., an airline holding company, including as its Chairman of the Board. Prior to that, Denison served as Executive Vice President of Corporate Services for Southwest Airlines. During his time at Southwest, Denison also held the roles of Vice President of Finance and Chief Financial Officer. Before joining Southwest Airlines, Denison held the Assistant Treasurer position at The LTV Corporation in Dallas. He also worked as the Manager of Corporate Finance for the Chrysler Corporation in Detroit. “We are proud to add businessmen of this caliber to our Board,” said Gary Kelly, Chairman of the Board, President, and Chief Executive Officer for Southwest Airlines. “We know their talent and experience will provide fresh insight particularly as our industry still faces many challenges.” Villanueva enjoys giving his time to the community by serving on various nonprofit boards including the American Red Cross, the National Hispanic Education Fund, and the National YMCA. He was active in immigration reform legislation and was a Commissioner of the 1984 Summer Olympic Games in Los Angeles. He is a graduate of New Mexico State University. In 2007, Villanueva was inducted into the National Hispanic Sports Hall of Fame, located in Texas. Denison received his MBA from Wayne State University in Detroit and his Bachelor of Arts in Economics from Oakland University. He served his country as a Sergeant in the US Army. Pursuant to the Company’s Bylaws, both men will initially serve for a term lasting until the Company’s next Annual Meeting of Shareholders in May 2009. Other members of Southwest’s Board of Directors are: David W. Biegler, Louis E. Caldera, C. Webb Crockett, William H. Cunningham, Ph.D., Travis C. Johnson, Gary C. Kelly Nancy B. Loeffler, and John T. Montford. About Southwest Airlines After 37 years of service, Southwest Airlines, the nation’s leading low-fare carrier, continues to stand above other airlines—offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide. www.southwest.com ... View more

Super Low Fares Available for Short Time! 'Tis the season for low fares at Southwest Airlines! Southwest Airlines is once again offering Customers fares as low as $49 one-way for travel this holiday season. "We hope these low fares enable folks to be able to travel to see friends or family this holiday season and have money in their pockets once they arrive," said Dave Ridley, Southwest Airlines Senior Vice President of Marketing and Revenue Management. "But act fast -- they won't be around for long!" Southwest's super low fares are available for purchase through Nov. 20, 2008, only. Visit http://www.southwest.com/?src=PRPRPRNGENR000000080808 to book these winter fares. Examples of the fares are listed below: --  $49 one-way between Phoenix and San Diego.    --  $69 one-way between Las Vegas and Oakland.    --  $79 one-way between Oklahoma City and St. Louis.    --  $89 one-way between Detroit and Orlando. FARE RULES Southwest Airlines sale fares are available today through Nov. 20, 2008, and travel must take place between Dec. 9, 2008, and Feb. 28, 2009. Fares are only available on http://www.southwest.com. Lowest fares are available Mondays through Thursdays, and Saturdays with higher sale fares available on Fridays and Sundays. Fares are available one-way. All tickets must be purchased 21-days in advance. When combining fares, all ticketing restrictions apply. Any change in the itinerary may result in an increase in fare. Fares are subject to change until ticketed. Seats are limited. Fares may vary by day of travel and will not be available on some flights that operate during very busy travel times and holiday periods. Fares do not include a federal segment tax of $3.50 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 Fees of $5.00. Fares are subject to change until ticketed. Tickets are nonrefundable but (except for tickets purchased through our Group Tickets program), if unused, may be applied toward the purchase of future travel on Southwest Airlines. Fares are valid on Southwest-operated published, scheduled service only. Travel to/from New Orleans, Orange County, Salt Lake City, or Washington, D.C. (Dulles) , not included in this sale. Southwest is the only U.S. airline to remain consistently profitable this decade, and enjoys an unprecedented string of 35 consecutive years of profitability. Southwest has among the lowest cost structure, a strong balance sheet, and the most productive Employees of any major U.S. airline. At Southwest Airlines, fees don't fly with us. You can check your first two bags for free ( size and weight limits apply), there are no change fees, no fees for a window or aisle seat, and, as always, snacks, sodas, and smiles are all complimentary! After 37 years of service, Southwest Airlines, the nation's leading low-fare carrier, continues to differentiate itself from other airlines -- offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience. Southwest offers a very comfortable ride with all premium leather seats and plenty of legroom with a young all Boeing 737 fleet. Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest even more convenient and simple. Southwest Airlines (NYSE: LUV) , the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide. http://www.southwest.com   ... View more

Southwest Helps Kidd’s Kids As the official airline of Kidd’s Kids charity, Southwest partners with nationally syndicated radio station KHKS 106.1 and host Kidd Kraddick to send more than 40 families with terminally and chronically ill children to Walt Disney World every year. The trip allows these very deserving children to get away from their daily stresses and enjoy a fun family vacation. This year’s trip took off from Love Field last week, and the families flew to Orlando in style aboard one of our LUV jets donning a special Kidd’s Kids logo. Before taking off, Southwest hosted a send off party for everyone going on the trip.  A few weeks ago, Southwest Employees assisted the charity by manning a telethon for donations. To learn more or make an online donation, visit http://kiddskids.com/get-involved.html. What a perfect partnership for the airline with a heart! ... View more

Southwest Announces Partnership with Center for Citizen Leadership At the St. Louis Veterans Day Parade on Saturday, Southwest announced our partnership with the Center for Citizen Leadership. Southwest is endowing Fellowships in honor of two Southwest Employees who gave their lives in the current war—Finance Employee and Sergeant Charles B. Kitowski III, U.S. Army, and MCI Provisioning Agent and Sergeant First Class Michael T. Fuga, Army National Guard.  The Mission Continues Fellowship program encourages Veterans to carry on their mission of service as they return to their communities by spending time at a service organization in a capacity that matches their skill set.     ... View more

  SOUTHWEST AIRLINES TO OFFER MEXICO SERVICE VIA AGREEMENT WITH MEXICAN CARRIER VOLARIS; SERVICE SCHEDULED FOR 2010   Southwest Airlines and Volaris Take First Step Toward Codeshare Partnership, Opening New Gateways Between the United States and Mexico   Southwest Airlines today announced its intention to build a codeshare partnership with Mexican carrier Volaris. The two airlines have completed the first step in creating a relationship that will eventually allow the carriers to offer Customers a seamless travel experience to a wide array of destinations. This initial agreement puts the two airlines on a path toward bringing more low fares and a better Customer experience across the U.S./Mexican border. The airlines plan to announce codeshare flight schedules and additional features regarding the partnership by early 2010. Certain details of the codeshare and elements of the partnership are subject to approvals by both the U.S. and Mexican governments.  To view a blog post on the announcement, visit: http://www.blogsouthwest.com/blog/viva-mexico.  “We are continuing to look for ways to expand our network through international codeshare partnerships, and we are excited to team up with Volaris to offer our Customers access to attractive Mexican destinations,” said Southwest Airlines Executive Vice President Strategy and Planning Bob Jordan. “Volaris has a stellar reputation for being a highly efficient airline with a dedication to Customer Service, which makes it a natural fit for Southwest Airlines.”    Volaris was founded in 2006 and currently serves 39 routes in 23 cities throughout Mexico. Volaris is known for competitive pricing and an end-to-end operations model that has earned the airline the reputation for being Mexico’s most ontime carrier. Volaris operates a modern fleet of 18 Airbus A319 and an A320 aircraft with an average age of 2.17 years. “Our international expansion will happen with the best possible partner for a carrier of our characteristics - that is Southwest Airlines. We are certain that the codeshare will allow business, leisure, and visiting friends and family traffic to increase on both sides of the border,” said Volaris Chief Executive Officer Enrique Beltranena. The airlines are not ready to announce routes, schedules, or fares at this point, but the agreement will eventually allow each carrier to check both Customers and baggage to a passenger’s final destination. The codeshare partnership is intended to provide convenient, viable connecting schedules. In addition, southwest.com will become a distribution channel for Volaris’ existing Mexican and future transborder flights in the Spring of 2009, providing Customers the opportunity to purchase flights on Volaris’ existing flights via southwest.com (this option will be available for existing Volaris flights before actual connecting codeshare flights are available for purchase). Other areas of possible cooperation include frequent flier options, ground handling, and cargo.  “We recently announced our decision to enter the international market with Canadian carrier WestJet, and we will continue to work diligently to broaden our international codeshare service even further,” Jordan said.    About Southwest Airlines After 37 years of service, Southwest Airlines, the nation’s leading low-fare carrier, continues to stand above other airlines—offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide.   About Volaris Volaris is a Mexican high-efficiency airline aimed at offering customers a unique travel experience – starting with the easy ticket purchasing process right through the onboard entertainment services. With an A320 and 18 A319 aircrafts, Volaris has the youngest and most modern fleet in Mexico reaching 23 different destinations across the country. Volaris started operations March 2006 guaranteeing travelers comfort, reliability, and on-time performance. More than 1,500 employees make up the Volaris family and bring to life the airline’s commitment to good service and single-class treatment: the Human Class. Additionally, Volaris has earned exceptionally high marks for Customer Service and punctuality through a commonly used Net Promoter Score.    This news release contains forward-looking statements related to Southwest’s intention to offer international service through an alliance with Volaris. Specific statements relate to the anticipated impact of such alliance on Southwest’s routes, fares, and Customer experience. These forward-looking statements are based on Southwest’s current intent, beliefs, and expectations and are not guarantees of future results. These statements involve risks, uncertainties, assumptions, and other factors that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the companies’ ability to negotiate mutually agreeable codeshare terms and their receipt of necessary governmental approvals, (ii) consumer interest in, and demand for, the combined offering; (iii) the impact of competitive offerings; and (iv) economic and related uncertainties that could impact the ability of the two companies to fully implement all of the initiatives currently contemplated by their alliance.   Southwest Airlines Media Contact: 214/792-4847             Volaris Media Contact:   relaciones.publicas@volaris.com.mx     www.southwest.com   ... View more

[asset|aid=286|format=post_large_image|formatter=imagecache|title=Judges_9633.jpg|align=none|height=100|width=100] Big thanks to Brett Snyder aka “the Cranky Flier” of CrankyFlier.com , Holly Hegeman of PlaneBuzz.com and PlaneBusiness.com ,  Grant Martin of Gadling.com , and Ellen Wernecke of Jaunted.com , for spending Halloween with us here at our Dallas Headquarters and serving as our Celebrity Halloween Judges.  It was a long day - as Holly noted in her weekly newsletter, we walked a total of 4.3 miles (information provided by SWA Communicator, Millie Richter, who tracked our moves with her pedometer) from department to department judging performances, haunted houses, and walkthroughs. Nevertheless, I think everyone had a good time and was blown away by our devotion to the celebration.  You can read their thoughts by visiting the links below: Three Things I Learned at Southwest’s Halloween Contest http://crankyflier.com/2008/10/31/three-things-i-learned-at-southwests-halloween-contest/ Southwest celebrates Halloween with a bang http://www.gadling.com/2008/11/03/southwest-celebrates-halloween-with-a-bang/ Halloween at Southwest:  So Much Fun It's Scary http://www.jaunted.com/story/2008/11/3/11433/1033/travel/So+Much+Fun+It%27s+Scary Judging Southwest’s Halloween http://crankyflier.com/2008/11/03/judging-southwests-halloween/ Gary Kelly Plays "Sharp Dressed Man” http://www.jaunted.com/story/2008/11/2/235844/931/travel/Gary+Kelly+Plays+%22Sharp+Dressed+Man%22 Where the Hell I’ve Been http://www.planebuzz.com/2008/11/where_the_hell_ive_been.html The airlines celebrate Halloween http://www.gadling.com/2008/11/02/the-airlines-celebrate-halloween/ A Close Reading Of Gary Kelly’s Costume Pick http://www.jaunted.com/story/2008/10/31/9447/7525/travel/A+Close+Reading+Of+Gary+Kelly%27s+Costume+Pick Gadling Infiltrates Southwest Airlines http://www.gadling.com/2008/10/31/gadling-infiltrates-southwest/ Cranky’s Halloween Photos http://www.flickr.com/photos/crankyflier/sets/72157608607295609/  ... View more

  We are currently accepting air reservations through March 6, 2009. On November 6, we plan to open the schedule for purchase through May 8, 2009. (This date is subject to change.) For great deals, visit: http://www.southwest.com/hotfares/hotfares2.html?src=e110408.   ... View more

Southwest Airlines Reports October Traffic   DALLAS, Nov. 4 -- Southwest Airlines Co. (NYSE: LUV) announced today that the Company flew 6.2 billion revenue passenger miles (RPMs) in October 2008, compared to 6.0 billion RPMs flown in October 2007. Available seat miles (ASMs) increased 2.9 percent to 8.8 billion from the October 2007 level of 8.6 billion. The load factor for the month was 70.4 percent, compared to 70.5 percent for October 2007. For the ten months ended October 31, 2008, Southwest flew 62.4 billion RPMs, compared to 60.8 billion RPMs for the same period in 2007. Available seat miles increased 4.4 percent to 86.6 billion from the 2007 level of 82.9 billion. The year-to-date load factor was 72.1 percent, compared to 73.4 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=INVRINVOCTR000000081104.                               SOUTHWEST AIRLINES CO.                   PRELIMINARY COMPARATIVE TRAFFIC STATISTICS                                                        OCTOBER                                             2008         2007          CHANGE     Revenue passengers carried           7,485,486     7,458,021         0.4%     Enplaned passengers                  8,562,483     8,524,011         0.5%     Revenue passenger miles (000)        6,207,500     6,034,221         2.9%     Available seat miles (000)           8,812,152     8,565,012         2.9%     Load factor                              70.4%         70.5%   (0.1) pts.     Average length of haul                     829           809         2.5%     Trips flown                            101,224        99,781         1.4%                                                        YEAR-TO-DATE                                            2008          2007           CHANGE     Revenue passengers carried          75,226,662    74,414,339         1.1%     Enplaned passengers                 86,508,236    85,559,121         1.1%     Revenue passenger miles (000)       62,434,010    60,847,751         2.6%     Available seat miles (000)          86,627,709    82,942,020         4.4%     Load factor                              72.1%         73.4%   (1.3) pts.     Average length of haul                     830           818         1.5%     Trips flown                            999,983       965,110         3.6% SOURCE  Southwest Airlines Co.     ... View more

TICKETS TO SOLD OUT  DE LA HOYA FIGHT AVAILABLE TO SOUTHWEST AIRLINES CUSTOMERS Southwest Airlines offers special travel package and tickets to the De la Hoya fight for a limited time Dallas – Oct. 29, 2008 – For a limited time only, Southwest Airlines’ Customers can purchase tickets to the sold out “Dream Match” fight of Oscar de la Hoya v Manny Pacquiao, when buying a special vacation travel package to Las Vegas.  “Southwest Airlines is proud to be a sponsor of this great event, where two of the best contenders come together for an exciting night of boxing,” said Laura Lopez, assistant manager of segment marketing for Southwest Airlines. “This is another example of first class service to our Customers. No other airline can provide such an exclusive offer and the best seats in the house to see the Golden Boy in this sold out fight.” When Southwest Airlines’ Customers buy a Las Vegas vacation package on www.southwestvacations.com/specials/detail.asp?xmlfile=FS0337 they can book flights and hotel accommodations for two or more nights, and have the option to buy these limited access tickets with the special promotions code OSCAR500 or OSCAR750.   This knockout offer is not available forever and seating is limited, so Customers must reserve their travel packages by November 15, 2008 and travel by December 6, 2008.  Five-day advance purchase is required. Seats are limited. Other restrictions apply. Southwest Airlines believes that a great vacation is just a click away.  With our exclusive no hidden fees policy, our Customers will not turn to their wallets to pay for the first and second registered bag.  No fees for changes in traveling or snacks.  With this offer, you can get great seats on the plane and at the fight!! After 37 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 most productive airline in the sky and offers Customers a comfortable traveling experience.  Southwest offers a very comfortable ride with all premium leather seats and plenty of legroom with a young all Boeing 737 fleet.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide.   www.southwest.com ... View more

Earlier this fall, specially trained Customer Care Representatives from our Reservations Department began offering 24-hour baggage information services through a special toll-free number, (888) 202-1024.  In the initial rollout, these representatives also began supporting our largest stations by proactively contacting Customers with updates regarding the status of their delayed baggage.  The program has been so successful, that by mid-November, the Customer Care Representatives will extend their services to all Southwest cities in an effort to provide our Customers with even better service. ... View more

Great Nightline spot on the emergence of fees in the airline industry.  To view, visit:  http://abcnews.go.com/video/playerIndex?id=6093116 While the days of free peanuts and checked bags may be over at other airlines, you can still count on Southwest Airlines for great fares, great service, and no hidden fees.          ... View more

Prime Numbers: Change Is in the Air  Foreign Policy Magazing   By William Swelbar   More airlines around the world have gone belly up this year than in the aftermath of September 11. Airlines have simply met their match in the high price of oil. Nothing short of a complete overhaul of the industry—fewer carriers, fewer flights, and far higher prices—will keep the world flying.   To read more, visit: http://www.foreignpolicy.com/story/cms.php?story_id=4529 ... View more

Brand Champion of the Year Finalists You may recall back in June of this year, Rex Whisman of Brand Champions Blog named Southwest Airlines Brand Champion of the Day.  Today, Rex announced that our airline is now a finalists for the honor of Brand Champion of the Year!  Thanks so much, Rex! To read more and tell Rex why Southwest Airlines should win the coveted honor, visit:  http://www.brandchampionsblog.com/my_weblog/2008/10/brand-champion-of-the-year-finalists--red-bull-and-southwest-airlines.html         http://www.brandchampionsblog.com/my_weblog/2008/10/brand-champion-of-the-year-finalists--red-bull-and-southwest-airlines.html ... View more

  Gary Kelly, Chairman of the Board, President, and Chief Executive Officer and Laura Wright, Senior Vice President Finance and Chief Financial Officer will discuss our third quarter 2008 results on a conference call with media and financial analysts at 11:30 a.m. Eastern Time today. If you would like to listen in, a live broadcast of the conference call will be available at http://www.southwest.com/?src=INVRINV3Q08000000081016 .   ... View more

Southwest Airlines Reports Third Quarter Financial Results 70th Consecutive Quarterly Operating Profit Southwest Airlines (NYSE: LUV) today reported its 70th consecutive quarterly operating profit. After special charges totaling $247 million primarily related to mark-to-market adjustments on a portion of the future periods' fuel hedge portfolio required by Statement of Financial Accounting Standard (SFAS) 133, "Accounting for Derivative Instruments and Hedging Activities," as amended, the Company reported a third quarter 2008 net loss of $120 million, or $.16 loss per diluted share. This compares to net income of $162 million, or $.22 per diluted share, for third quarter 2007. Excluding these special charges and other special items, the Company reported third quarter 2008 net income of $69 million, or $.09 per diluted share, compared to $156 million, or $.21 per diluted share, for third quarter 2007. Third quarter 2008 also represents the Company's 70th consecutive quarter of net income, excluding special items. The Company's third quarter 2008 net income, excluding special items, of $.09 per diluted share exceeded Thomson's First Call's mean estimate of $.07. Refer to the reconciliation in the accompanying tables for further information regarding special items.     Third Quarter 2008 Financial Highlights:     -- 70th consecutive quarter of profitability, excluding special items     -- Record quarterly revenues of $2.9 billion, up 11.7 percent from third        quarter 2007     -- Net income, excluding special items, of $69 million, down 55.8 percent     -- Net income per diluted share, excluding special items, of $.09, down        57.1 percent     -- Cash settlement gains of $448 million from fuel contracts reflected in        net income Under SFAS 133, a portion of the Company's fuel derivative portfolio is marked-to-market through the income statement if the requirements for hedge accounting have not been met, which can create significant volatility in the Company's financial statements. For contracts settling in future periods, these derivative contracts generally result in recording unrealized gains during periods of rising fuel costs; conversely, during periods of decreasing fuel prices, these contracts generally result in recording unrealized losses. As a result, the $247 million in charges for the third quarter 2008 essentially reversed a large portion of mark-to-market gains recognized in prior periods. These charges led to the net loss reported for third quarter 2008 under generally accepted accounting principles (GAAP). However, the actual cash settlement gains realized in third quarter 2008 from the Company's hedging activities were $448 million, compared to $189 million in third quarter 2007. The Company views its fuel derivative contracts as an integral component of managing its costs related to jet fuel purchases. Therefore, the Company believes it is more meaningful to evaluate its financial performance including the impact of the net cash settlements each quarter and excluding the mark-to- market adjustments for unrealized gains and losses recorded in the income statement for contracts settling in future periods. Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated: "Given today's unprecedented economic challenges, we are proud of our 70th consecutive quarterly profit, excluding the impact of special items. Although we have much work ahead, I am very proud of the substantial progress our People have made to overcome higher operating cost pressures. In particular, our post-Labor Day revenue trends are very strong. And, the Customer reactions to our efforts to firmly establish Southwest Airlines as America's favorite Low Fare Airline are extremely encouraging. "Our third quarter 2008 operating revenues of $2.9 billion were a record performance, increasing a strong 11.7 percent, or 9.3 percent per available seat mile (ASM). Since August, our revenue trends have strengthened, with September operating revenue per available seat mile (RASM) increasing 11.0 percent and October month-to-date RASM increasing approximately 14 percent, versus the respective year-ago periods. I am delighted with the results of our efforts to drive revenue growth, which include:     -- Slowing our capacity growth to under two percent in second half 2008;     -- Continuing flight schedule optimization, including trimming        unproductive and less popular flights and reallocating capacity to fund        attractive market growth opportunities such as Denver, and our newest        city, Minneapolis-St. Paul;     -- Enhancing revenue management technologies, processes, and techniques;     -- Increasing fares gradually; and     -- Aggressively promoting our No Hidden Fee, Low Fare brand. Based on these actions, domestic competitor capacity reductions, and revenue and booking trends thus far, we currently expect a solid increase in our fourth quarter 2008 operating unit revenues, although the current world- wide financial crisis creates uncertainty about future demand. "Turning to operating costs, our third quarter 2008 unit costs, excluding special items, increased 16.0 percent, mostly due to jet fuel price increases. Excluding fuel and special items, our unit costs were up 6.5 percent from the same period a year ago, primarily due to continued maintenance, airport, and fuel tax pressures. With increased cost headwinds associated with minimal ASM growth in fourth quarter 2008, we presently expect our fourth quarter 2008 unit costs, excluding fuel and special items, if any, to exceed third quarter 2008's 6.86 cents. Despite these cost pressures, our operating cost advantage, especially compared to legacy airlines, is as strong as ever. More importantly, we need to aggressively manage costs and productivity to maintain our profitable Low Fare brand. I am very proud of our Employees' ongoing efforts to control costs, improve productivity, and preserve our brand during this challenging environment. "Although we reported a better-than-expected economic fuel cost of $2.44 per gallon, which reflected $448 million in favorable cash settlements from our third quarter 2008 fuel hedge, our jet fuel costs per gallon were 44.4 percent higher than third quarter 2007 and were, by far, the most significant driver of the 16.0 percent increase in our third quarter 2008 unit costs, excluding special items. Although crude oil prices dropped from all-time highs at the beginning of third quarter 2008, they remain significantly higher than historical levels. Looking forward, we have derivative contracts in place for nearly 85 percent of our fourth quarter 2008 estimated fuel consumption at an average crude-equivalent price of approximately $62 per barrel (compared to approximately 90 percent at approximately $51 per barrel for fourth quarter 2007). Based on this derivative position and current market prices, we currently anticipate our fourth quarter 2008 economic fuel costs per gallon to fall in the $2.00 range compared to $1.72 per gallon in fourth quarter 2007. "In addition to our fourth quarter 2008 derivative position, we have derivative contracts for over 75 percent of our estimated 2009 fuel consumption at an average crude-equivalent price of approximately $73 per barrel; approximately 50 percent of our estimated 2010 fuel consumption at an average crude-equivalent price of approximately $90 per barrel; approximately 40 percent of our estimated 2011 fuel consumption at an average crude- equivalent price of approximately $93 per barrel; over 35 percent of our estimated 2012 fuel consumption at an average crude-equivalent price of approximately $90 per barrel; and have begun building a modest position for 2013. "Our fuel hedging program continues to provide us superb price protection. For the nine months ended September 30, 2008, our program saved us $1.3 billion. As of yesterday's market prices, our hedge portfolio was valued at approximately $550 million. Of course, the value of our fuel hedge fluctuates with oil prices. The dramatic drop in energy prices since July is a significant overall benefit for Southwest Airlines, of course, even though the fuel hedge portfolio dropped over the last three months. Even with the drop in prices, our fuel hedge remains "in the money." "With respect to our capacity plans, we have taken delivery of 26 Boeing 737-700 aircraft in 2008, and as a result of the Boeing machinists' strike, we will likely not take delivery of the three remaining aircraft originally scheduled for this year. We have returned eight 737-300 leased aircraft through third quarter 2008 and currently plan to return three additional 737- 300 leased aircraft during the fourth quarter, resulting in planned net aircraft growth of 15 for 2008. For fourth quarter 2008, we expect our year- over-year ASM growth will be about one percent. "While we continue to evaluate our growth plans for 2009, we recently announced the deferral of four 2009 Boeing 737-700 deliveries to 2016. Including the three aircraft originally scheduled for delivery from The Boeing Company in 2008, but likely delayed to 2009 due to their machinists' strike, we now expect to take delivery of 13 Boeing 737-700 aircraft next year (barring any substantial delays in 2009 deliveries due to the Boeing strike). With three 737-300 aircraft lease returns planned for next year in addition to other potential alternatives to reduce our fleet, we currently expect to add no more than ten net aircraft in 2009. While our 2009 fleet plans are not finalized, our flight schedule is currently published through March 6, 2009. First quarter 2009 ASMs are expected to decline in the five to six percent range, compared to first quarter 2008. "Although today's challenges are unprecedented, we are well-prepared and committed to achieving our long-term financial targets and preserving our financial strength. Our unrestricted cash and short-term investment balance was $2.2 billion as of yesterday, including $1.1 billion in fuel derivative collateral deposits. Although our liquidity is healthy, we have made the prudent decision in today's unstable financial markets to access $400 million in additional cash through our bank revolving credit facility leaving $200 million still available. We remain financially conservative and well-prepared with our strong balance sheet and modest debt levels. "Although these are difficult times, our dedicated People continue to deliver friendly, caring, and reliable Customer Service. The recent Southwest recognition by Forbes as "The Most Reliable Airline" is a true testament to our commitment to superb Customer Satisfaction. Other recent Southwest honors include being named "The Friendliest Airline" by TIME.com due to our No Fees campaign and our choice to not nickel and dime our Customers. Southwest Cargo recently received its 14th consecutive Quest for Quality Award, placing first in Ontime Performance, Value, Customer Service and Equipment and Operations. And finally, the Company blog, NutsAboutSouthwest.com, was recently named "Best Blog" for the second year in a row at the PR News Platinum Awards." Southwest will discuss its third 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=INVRINV3Q08000000081016 . Operating Results Total operating revenues for third quarter 2008 increased 11.7 percent to $2.9 billion, compared to $2.6 billion for third quarter 2007. Total third quarter 2008 operating expenses were $2.8 billion, compared to $2.3 billion in third quarter 2007. Operating income for third quarter 2008 was $86 million compared to $251 million in third quarter 2007. Operating income, excluding special items, was $147 million in third quarter 2008 compared to $273 million last year. Operating income, excluding special items, reflects fuel and oil expense of $939 million and $659 million for third quarter 2008 and 2007, respectively, which is based on the Company's true economic cost of fuel. "Other expenses" were $291 million for third quarter 2008, compared to "other income" of $26 million for third quarter 2007. The $317 million swing primarily resulted from unrealized "other losses" associated with SFAS 133. These unrealized losses represent the most significant difference between the Company's net loss and net income, excluding special items. The cost of the hedging program (which includes the premium costs of derivative contracts) of $20 million in third quarter 2008 and $14 million in third quarter 2007 is also included in "other (gains) losses." Third quarter 2008 interest expense increased 25.0 percent over last year due to the Company's issuance of $500 million Pass-Through Certificates in October 2007 and the Company's borrowing under its $600 million term loan in May 2008. Interest income for third quarter 2008 decreased $2 million versus the same period last year primarily due to lower market interest rates and lower rates earned from more conservative investments. Lower Boeing aircraft progress payments generated less capitalized interest in third quarter 2008 compared to last year. Net cash provided by operations for the nine months ended September 30, 2008 was $1.0 billion, which included a $495 million increase in fuel derivative collateral deposits related to future periods, and capital expenditures were $765 million. The Company ended third quarter 2008 with $3.4 billion in cash and short-term investments, which included $2.5 billion in fuel derivative collateral deposits (with a corresponding liability recorded in Accrued Liabilities). Total operating revenues for the nine months ended September 30, 2008 increased 12.5 percent to $8.3 billion, while total operating expenses increased 18.0 percent to $7.9 billion, resulting in operating income of $380 million versus $664 million in 2007. Excluding special items, operating income was $487 million and $672 million, respectively, for the nine months ended September 30, 2008 and 2007. Net income for the nine months ended September 30, 2008 was $234 million, or $.32 per diluted share, compared to $533 million, or $.69 per diluted share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2008 was $233 million, or $.32 per diluted share, compared to $385 million, or $.49 per diluted share, for the same period last year. 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 its future results of operations; (ii) its operating and financial strategies and the anticipated impacts of such strategies; (iii) its revenue and cost cutting initiatives and its expectations with respect to such initiatives; and (iv) its growth plans and expectations. 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) uncertainties surrounding changing economic conditions, which are beyond the Company's control and are therefore difficult to predict and which can impact the demand for leisure and business travel and can also impact the Company's ability to overcome increased fuel and other costs; (iii) competitor capacity and load factors; (iv) the Company's ability to timely and effectively prioritize its revenue and cost reduction initiatives and its related ability to timely implement and maintain the necessary information technology systems and infrastructure to support these initiatives; (v) the impact of governmental regulations and inquiries on the Company's operating costs, as well as its operations generally; and (vi) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007.   ... 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