Southwest Airlines wants to inform our Customers that we are on the watch for the possible impact Hurricane Gustav may have in our airports and operations. Please review our travel advisory posted at http://www.southwest.com/content/travel_center/travel_advisory_0038.html?ref=wthr for the latest information and/or call Reservations at 1-800-435-9792 to confirm your travel itinerary. Southwest Airlines also wants to remind our Customers that there is no additional charge for changes in itinerary.
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By David M Rowell aka The Travel Insider The 'Southwest effect' is described as the two things that happen when Southwest starts flying into a new city. Airfares drop across the board as established carriers match Southwest's typically lower fares, and air travel increases in response. Here's an interesting example of the other side of the Southwest effect. For reasons best known to itself and to no-one else, Southwest only publishes its schedules (and therefore fares) a little way into the future, unlike most airlines that will accept reservations up to 11 months in advance (and even further in advance for group type bookings). So guess what happens on the particular day when Southwest's future bookings stop being available? Yes - airfares typically rise on other carriers. Here's a wonderful example of this in chart form, courtesy of farecompare.com - at present, you can book with Southwest through until 6 March 2009. Look at the leap in fares on United that occurs on 7 March - from an average of about $385 up to an average of about $440. If you're flying anywhere in the US, plainly it is best not to book further in advance than Southwest has its schedules published for. To read more, visit: http://travel-abroad.blogspot.com/2008/08/travel-insider-this-weeks-travel_29.html
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DALLAS, Aug. 25 - Southwest Airlines recently appointed Kathleen Wayton as Vice President Strategy and Change Leadership. In her new position, Wayton will be responsible for providing executive leadership and direction for the Company's Strategy, Change Leadership, and Portfolio Management Teams. Click HERE for a photo. "Kathleen's love for developing People, drive for results, her work ethic, and knack for boiling the complex down into the real "to-dos" has made her the perfect Leader for this group," said Bob Jordan, Executive Vice President Strategy and Planning. "Having worked closely with Kathleen over the last year as she built our Teams, I know that she will be great in her new Leadership role." Wayton will lead the continued development and implementation of the Company's strategic plan. Additionally, she will drive companywide change and improvement projects; oversee the management of the Company's portfolio of investment opportunities; provide project management support; and support the development of the tools and processes to govern and manage strategy and project execution. Wayton joined Southwest in 2004 as a Director in Technology, leading our Enterprise Data Team. She was then promoted to Senior Director over the Rapid Rewards and southwest.com Teams in Technology. Last April, she moved to the Strategic Planning Department as Senior Director. "I look forward to continuing to work alongside the best Employees in the industry to provide strategic direction for Southwest Airlines," Wayton said. " This is one of the most exciting times in Southwest's history, and I'm honored to be a part of it." Kathleen grew up in Odessa, Texas, and graduated from the University of North Texas with a BA in Marketing. 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 34, 000+ Employees systemwide. http://www.southwest.com
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Seriously? Flight attendants are not baby-sitters. It is not their responsibility to control children with or without exceptionalities. Their job is to ensure the safety of the passengers. If anyone is out of control or not obeying the rules, it is their responsibility to make sure that whom ever is out of line is quickly put back in line.
If it were a child who is not autistic and just overactive or the victim of careless parents ... the same action would have resulted. It is not an issue of autism. If a flight attendant is responsible for knowing all conditions and how to deal with people with various conditions ... they would be call psychiatrists not flight attendants.
Is it just me or does anyone notice it is never the parents' fault? The finger is always pointed elsewhere ... i.e. flight attendants, teachers, society, etc. It is the parents' own inability to accept reality that results in these sorts of issues. If the parents know that this could be the possible outcome of their autistic child being confined to a plane for an extended period of time ... then alternate arrangements in transportation should be made. Again, parents not accepting the reality that their children shouldn't fly.
I fly rather regularly and would have appreciate the flight attendants responding to this situation the way that they did. Refunding their money was probably not the best message that could have been sent. Is this to say that all I have to do is act up on a flight and it's free? If anything those aboard the plane should have had their money refunded. Sadly, the parents of the children will use them as an excuse to get 'stuff.' It is giving them an excuse for themselves which really has nothing to do with their child. So if the child wasn't already facing issues ... they now have crappy parent to deal with as well.
I pray for those involved in this situation. Especially for the children that have these two women as supervision and use them to get what they want.
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Southwest Airlines wants to keep our Customers informed on the approach of Tropical Storm Fay. All Customers that bought their tickets to travel to and from Ft. Lauderdale, Ft. Myers, and West Palm Beach, from August 17 to August 20th can change their itineraries with no additional charges. To confirm or change a ticket, please call Southwest Airlines Reservations at 1-800-435-9792. For updated information also link to: http://www.southwest.com/content/travel_center/travel_advisory_0037.html?ref=wthr.
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my guess is that is has something to do with him serving on the Senate Committee on Commerce, Science, and Transportation.
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Southwest Airlines stands on the winner’s podium for cargo business DALLAS—Aug. 18, 2008— Southwest Airlines Cargo took home the gold today as Logistics Management ranked the airline number one among all air carrier Quest for Quality award winners. Southwest Airlines earned the highest scores in On-Time Performance, Value, Customer Service, and Equipment & Operations. This year’s win marks the 14th Quest for Quality award for Southwest Airlines. The carrier has earned the top spot for 12 consecutive years. Quest for Quality winners are determined from the results of an annual survey conducted by Logistics Management magazine, where 2,000+ shippers ranked their transportation service providers on a variety of performance criteria such as On-Time Performance, Value, Information Technology, Customer Service, and Equipment & Operations. For the past 25 years, Logistics Management’s Quest for Quality has been regarded in the transportation and logistics industry as one of the most important measures of customer satisfaction and performance excellence. Southwest Airlines Cargo is recognized as an industry leader, winning numerous awards due to the reliable Southwest Employees who run its operations across the nation. Southwest Airlines Cargo Employees are available to help Customers meet their shipping needs, delivering the excellent Customer Service and operational excellence for which the carrier is known. 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
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Bob Young Plugs In for Airline’s Extensive Technology Projects DALLAS—August 15, 2008 – Southwest Airlines announced today that Bob Young joins the Dallas-based airline as its new Vice President and Chief Technology Officer (CTO). For a photo of Bob Young, please use this link (http://gallery.swamedia.com/photos). Young will lead Southwest’s Infrastructure Teams including Change, Test and Deployment, Application and Data Architecture, Tech Services Operations Support, and Tech Services Field Support and Engineering. He joins the Technology family led by Jan Marshall, Southwest’s Vice President Technology and Chief Information Officer; Laurie Hulin, Vice President Aircraft Operations and Enterprise Management; and Darren Dayley, Vice President Customer Experience Portfolio. These departments are vital in driving and supporting the airline’s extensive technology projects needed to meet such corporate goals as re-launching the carrier’s award-winning frequent flyer program in 2009, expanding its codeshare relationships to international destinations, and exploring the potential for onboard wireless Internet. “With so much work to do and the excitement we all feel about these projects, we are thrilled to have someone with Bob’s energy and background on our team to help carry all of this momentum forward,” said Bob Jordan, Southwest’s Executive Vice President Strategy and Planning. Young brings with him extensive experience in the areas of Data Center Operations, architecture, and applications development. Most recently, Young was employed by a large, well-known, U.S. - based electronics products company, where he was responsible for support of a large business unit with annual revenues of $15-20 billion. His responsibilities also included global marketing and global go-to-market organizations with IT teams across ten countries. Young has served his country as an Officer and Naval Aviator with the United States Navy. He earned a Masters of Business Administration from the University of St. Thomas, St. Paul, Minn. and a Bachelor of Science from Pennsylvania State University, University Park, Penn. 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 premium all 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
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I thought you might enjoy trying two other Airline Fee Comparison Tool websites
http://www.CompareAirlineFees.com
http://www.airlinefees.org
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Anonymous - I do not believe the policy ever changed in the first place. I believe it has always stated PCS orders; however, this blog is definitely misleading. Seems like a bait-and-switch routine. Southwest should definitely update their Contract of Carriage to officially reflect their stated intentions. So, basically, if you are being transferred from Germany to the U.S. (i.e., PCS orders) you get any baggage fees waived. If you are travelling to Afghanistan (which I can't imagine would ever be on PCS orders), you pay the extra fees, unless you are lucky enough to have an agent that doesn't go by the written policy.
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Thank you SOUTHWEST. I finally made to Seattle,WA. After earning my 1st Rapid Reward certificate, I decided to use it wisely. I earned my reward by traveling as much as I can in the east coast and midwest. Yeah! as soon I got my reward, I knew I want to see Seattle. Never been there and thank God you fly there. It was a long trip and long lay over but it was all worth it. Why? The night after arrive, I told my friend that he needs to take me to the Space Needle next day. Got up early in the morning when to the Space Needle went up 520' feet up, guess what I saw. It was the most romantic scene I saw. As soon I got out the observation deck, there was a guy proposing to his girlfriend. What perfect view, right behind is Mt Rainier. I was touched how this guy did it. After moment, I knew this trip was going to be perfect. Again, thank you SOUTHWEST for another priceless memories. Yes, Washington state is my 42nd state to visit. I only wish I have a video camera to show that your customers.
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Patrick - you have to be 18 or older...hope you qualify!
Paula Berg
Southwest Airlines
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Our friends over at Flight Global picked up on an interesting little fact about our new Vice President of Revenue Management and Pricing. Visit http://www.flightglobal.com/blogs/left-field/2008/08/southwest-revenues-and-the-twi.html to find out what it is. Here's a Clue:
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Hey, Scott in MN!
Aside from making one snarky comment about the DL/NW merger--do they really think that two bricks float better than one????--I can't get specific about our future expansion plans, in Minneapolis or anywhere else. However, I can honestly tell you that Southwest constantly watches the competitive landscape for factors like air traffic generation, prevailing fare levels, facility availability, and general service levels in pretty much every airport in the nation, both those that we currently serve as well as those that we don't. As our competitors merge, shrink, and then subsequently pillage the travelling public, we are "burnin' the midnight oil" to make certain we don't miss any competitive opportunities. So stay tuned--you just never know what we might do!
Bill/Schedule Planning
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DALLAS, TEXAS – August 5, 2008 - Southwest Airlines Co. announced today that the Company flew 6.9 billion revenue passenger miles (RPMs) in July 2008, a 2.3 percent decrease from the 7.0 billion RPMs flown in July 2007. Available seat miles (ASMs) increased 4.3 percent to 9.0 billion from the July 2007 level of 8.7 billion. The load factor for the month was 76.3 percent, compared to 81.4 percent for the same period last year. For the seven months ended July 31, 2008, Southwest flew 44.3 billion RPMs, compared to the 42.2 billion RPMs recorded for the same period in 2007, an increase of 5.0 percent. Available seat miles increased 5.7 percent to 60.6 billion from the 2007 level of 57.3 billion. The year-to-date load factor was 73.1 percent, compared to 73.6 percent for the same period last year. www.southwest.com
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SOUTHWEST AIRLINES PROVISIONS DENVER WITH LUV CELEBRATING PROVISIONING BASE GRAND OPENING, BACKPACK BRIGADE COMMUNITY EVENT, AND NEW SERVICE Southwest Airlines Donates 100 Backpacks to Operation Homefront During a Back-to-School Party at Denver International Airport (DIA) New Flights to Sacramento, New Orleans, and Ft. Lauderdale/Hollywood Start Today DENVER, CO – Aug. 4, 2008 - Southwest Airlines hosted a triple celebration today at Denver International Airport (DIA) in honor of the grand opening of the airline’s 22nd Provisioning Base, a back-to-school party benefiting the Colorado Chapter of Operation Homefront, and the addition of several new flights which begin today from Denver. Southwest Airlines is celebrating the grand opening of the carrier’s 22nd Provisioning Base in Denver. The Provisioning Base will temporarily be located in a 2,500 square-foot facility on the lower-level of the airport. The airline is planning a larger facility for the Provisioning Base that is scheduled to open in 2009. Southwest Airlines initially hired 23 Provisioning Employees to operate the new base, adding to the 275 Employees already working at the airport. Southwest Airlines serves more than 64 million cans of soda, juice, and water, 11 million alcoholic beverages, six million bags of pretzels, and more than 100 million bags of peanuts a year! The Provisioning Team restocks the aircraft with all necessary food, drink, and entertainment items at each of our Provisioning Stations when an aircraft arrives at the gate between flights. “With our steady expansion in Denver since January 2006, the Denver Provisioning Station will support the increased aircraft flow and will complement our Provisioning network nationwide,” said Scott Halfmann, Southwest’s Vice President of Provisioning. Through the airline’s Companywide Backpack Brigade effort, Southwest Airlines will donate 100 backpacks to the Colorado Chapter of Operation Homefront, provisioning children of deployed military service members with parents serving in Afghanistan and Iraq with school supplies for the upcoming year. The backpacks contain much-needed items donated by Southwest Employees as part of a Share the Spirit supply drive. For the past month, Southwest Employees donated goods, including binders, folders, pencils, and markers at each of its 64 locations across the nation. The backpacks will be distributed to 11 cities, including Denver. Southwest Airlines executives presented the backpacks to more than 25 children representing Operation Homefront at today’s celebration. “Today’s celebration is indicative not only of our expansion in Denver, but of our commitment to being a good neighbor to the city,” said Mike Van de Ven, Southwest’s Executive Vice President and Chief Operating Officer. “Denver has been a major focus for us since we re-entered the market in 2006, and we will continue to look for ways to complement our service in the Mile-High City by giving back to the community.” Southwest Airlines also will commence five daily nonstop flights from Denver today. The additional service includes two new daily nonstop flights between Denver and Sacramento, one new nonstop flight each between Denver and Ft. Lauderdale/Hollywood and Denver and New Orleans, as well as one additional daily nonstop flight between Denver and Phoenix (for a total of seven daily). To book your seat on these new Southwest Airlines flights, visit: http://www.southwest.com/?src=PRPRPRNDENV000000080408. Southwest Airlines began service to Denver on Jan. 3, 2006, with 13 daily nonstop departures to three destinations. The airline currently operates 89 daily nonstop flights from the Mile High City, making Denver the fastest growing city in the Company’s history. With previously announced service, Southwest will operate 115 nonstop flights from Denver to 32 cities by Nov. 2, 2008. About Southwest Airlines With Southwest Airlines’ Share the Spirit program, Employees are devoted to each and every community the airline serves. Throughout the year, Southwest Airlines Employees reach out to individuals, families, and entire communities providing help where it is needed. Southwest’s Share the Spirit is ingrained in the Company’s culture, and the airline’s 34,000+ Employees are often the lifeline for those in need. Based in Dallas, Southwest Airlines serves 64 cities in 32 states and is the largest carrier in the world, as measured by passengers carried. About Operation Homefront & CinCHouse.com What is today Operation Homefront began in 2001 as a military spouse-generated idea. In response to the needs of the families of deployed service members, CinCHouse.com members (military wives and women in uniform) created the project that has evolved into a major nonprofit charity serving 30 military communities. Today CinCHouse.com operates as a program as part of the nonprofit Operation Homefront family. From a good idea to a great organization, Operation Homefront understands and takes care of the needs of the military community. www.southwest.com
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By Terry Maxon Today's question is simple. Identify the location of this sign, and explain it. To submit your answer, visit: http://aviationblog.dallasnews.com/archives/2008/08/monday-morning-trivia-61.html
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Employees Donate, Package, and Load School Supplies on Military Vehicle Bound for Troops’ Children DALLAS—July 24, 2008—Southwest Airlines Employees today were joined at the airlines’ Dallas Maintenance Facility by Herb Kelleher, Chairman Emeritus and Founder, and Colleen Barrett, President Emeritus, to send off a U.S. military cargo truck carrying 1,000 backpacks filled with school supplies for donation to children of U.S. military personnel serving overseas. This is the final phase of “Backpack Brigade,” a month-long program in partnership with Operation Homefront, to raise support for the families of troops in Iraq and Afghanistan. The backpacks contain much-needed items donated by Southwest Employees as part of a companywide Share the Spirit supply drive. For the past month, Southwest Employees donated goods such as binders, folders, pencils, and markers at each of its 64 locations across the nation. The donated items were packaged into individual backpacks and will be sent to communities that Southwest serves from coast to coast. “Since many of Southwest’s Employees have served, or are currently serving in the military, this project is very close to home,” said Debra Benton, Director of Community Relations and Charitable Giving. “This Backpack Brigade initiative honors Herb and Colleen for their inspirational leadership of Southwest and their unwavering support for education and the military.” About Southwest Airlines With Southwest Airlines’ Share the Spirit program, Employees are devoted to each and every community the airline serves. Throughout the year, Southwest Airlines Employees reach out to individuals, families, and entire communities providing help where it is needed. Southwest’s Share the Spirit is ingrained in the company’s culture, and the airline’s 34,000+ Employees are often the lifeline for those in need. Based in Dallas, Southwest Airlines serves 64 cities in 32 states and is the largest carrier in the world, as measured by passengers carried. About Operation Homefront & CinCHouse.com What is today Operation Homefront began in 2001 as a military spouse-generated idea. In response to the need for the families of deployed service members, CinCHouse.com members (military wives and women in uniform) created the project that has evolved into a major nonprofit charity serving 30 military communities. Today CinCHouse.com operates as a program as part of the nonprofit Operation Homefront family. From a good idea to a great organization, Operation Homefront understands and takes care of the needs of the military community.
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DALLAS, TEXAS – July 24, 2008 – Southwest Airlines (NYSE:LUV) today reported its second quarter 2008 results. Net income for second quarter 2008 was $321 million, or $.44 per diluted share, compared to $278 million, or $.36 per diluted share, for second quarter 2007. Excluding special items, second quarter 2008 net income was $121 million, or $.16 per diluted share, compared to $195 million, or $.25 per diluted share, for second quarter 2007. The second quarter 2008 results exceed First Call’s mean estimate of $.12 per diluted share. Refer to the reconciliation in the accompanying tables for further information regarding special items. Second Quarter 2008 Financial Highlights: Record quarterly revenues of $2.9 billion, up 11.1 percent from second quarter 2007 Net income, excluding special items, of $121 million, down 37.9 percent Net income per diluted share, excluding special items, of $.16, down 36 percent Favorable cash settlements of $511 million from fuel contracts were reflected in net income, excluding special items Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated: “With the weak domestic economy and unprecedented jet fuel prices, we are pleased to report our 69th consecutive quarter of profitability. Although we have prepared ourselves well for today's challenging environment and are proud of our ability to sustain profitability, we cannot stand still. We must continue to make the necessary adjustments to adapt to higher jet fuel prices and restore our profit margins. "In addition to our major revenue initiatives underway, we continue to raise fares to avoid nickel and diming our Customers with added fees. With new schedule planning tools and processes and fleet flexibility, we believe we are well-positioned to respond to a rapidly changing environment and have the flexibility to adjust our flight schedule, as necessary, to eliminate unproductive flying. At present, we plan to grow our year-over-year available seat mile (ASM) capacity no more than four percent in 2008 to primarily meet Customer demand in developing markets, such as Denver. Customers have responded exceptionally well to Southwest service in Denver. As a consequence, we will grow to 115 daily departures to 32 markets in November. We are evaluating our current fleet plans and may not grow our ASM capacity in 2009. "As previously outlined, we have much work underway to grow revenues, and I am proud of the progress we are making. Despite the tough economy and more difficult year-over-year comparisons caused by Easter falling in March this year (versus April last year), we reported record operating revenues of $2.9 billion for the second quarter 2008 and an operating revenue per available seat mile (RASM) year-over-year growth rate of 5.3 percent . Based on revenue and booking trends so far this quarter, we are expecting strong yield growth but with lower load factors versus third quarter 2007. Thus far, our RASM growth rate in July has surpassed our second quarter year-over-year increase. “Although our revenue trends are strong, energy prices continue to soar. Even with $511 million in favorable cash settlements from derivative contracts in the second quarter 2008, our economic fuel costs increased 35.2 percent to $2.19 per gallon. Although better than we anticipated, the considerable year-over-year increase in fuel costs was by far the most significant driver of the 10.5 percent increase in our second quarter 2008 unit costs, excluding special items. We have derivative contracts for approximately 80 percent of our third quarter 2008 estimated fuel consumption at an average crude-equivalent price of approximately $61 per barrel (compared to approximately 90 percent at approximately $51 per barrel for third quarter 2007). Based on this derivative position and current market prices, we currently anticipate our third quarter 2008 economic fuel cost per gallon to be in the $2.50 range. “The current market value of our fuel derivative contracts for third quarter 2008 through 2012 is approximately $4.3 billion as a result of the extraordinary increase in fuel prices this year. In addition to our third quarter 2008 derivative contracts, we currently have derivative contracts for approximately 80 percent of our estimated fuel consumption for the fourth quarter 2008 at an average crude-equivalent price of approximately $58 per barrel; approximately 70 percent in 2009 at an average crude-equivalent price of $66 per barrel; approximately 40 percent in 2010 at an average crude-equivalent price of approximately $81 per barrel; and over 20 percent in 2011 and 2012 at an average crude-equivalent price of approximately $77 and $76 per barrel, respectively. “Excluding fuel, second quarter 2008 unit costs increased 1.8 percent from a year ago, which was better than we anticipated. Based on current trends, we expect our third quarter 2008 unit costs, excluding fuel and special items, to be in line with second quarter 2008’s 6.72 cents. "Although we have enormous cost challenges, primarily due to persistently higher fuel costs, we believe we have equally large opportunities to improve our revenue production. At the same time, we are enhancing our already strong brand and Customer Experience. The responses to our Business Select product, new boarding method, and makeover of the gate areas have been overwhelmingly positive. We are also making progress with our efforts to expand our network through codeshare arrangements and are excited about our recently announced plans to codeshare with WestJet to Canada by the end of 2009. "While our Employees are working harder than ever to secure our future, they continue to deliver warm, caring, and friendly Southwest-style service. Our People have incredible Warrior Spirits and huge hearts, which is why we lead the industry in Customer Satisfaction according to the American Customer Satisfaction Index and most recently captured The Reputation Institute's top ranking of the U.S. airlines by reputation. Their efforts are remarkable, their results superb, and I and am very grateful to each of them. Our People are, truly, the core strength of our Company." Southwest will discuss its second quarter 2008 results on a conference call at 12:30 p.m. Eastern Time today. A live broadcast of the conference call will be available at southwest.com. Operating Results Total operating revenues for second quarter 2008 increased 11.1 percent to $2.9 billion, compared to $2.6 billion for second quarter 2007. Total second quarter 2008 operating expenses were $2.7 billion, compared to $2.3 billion in second quarter 2007. Operating income for second quarter 2008 was $205 million compared to $328 million in second quarter 2007. Excluding special items, operating income was $242 million in second quarter 2008 compared to $328 million last year. Operating income, excluding special items, reflects fuel and oil expense of $857 million and $607 million for second quarter 2008 and 2007, respectively, which is based on the Company's true economic cost of fuel, including the benefit of cash settlements from derivative contracts of $511 million and $173 million, respectively. “Other income” was $324 million for second quarter 2008, compared to $119 million for second quarter 2007. The $205 million increase principally resulted from higher unrealized gains associated with Statement of Financial Accounting Standard (SFAS) 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended. These unrealized gains represent the most significant difference between the Company’s net income and net income, excluding special items. The cost of the hedging program (which includes the premium costs of derivative contracts) of $14 million in second quarter 2008 and second quarter 2007 is also included in "other (gains) losses.” The $20 million year-over-year increase in net interest expense for second quarter 2008 resulted from lower interest rates on cash, cash equivalents, and investments and lower Boeing aircraft progress payments, which generated less capitalized interest. Net cash provided by operations for the six months ended June 30, 2008 was $3.3 billion, which included a $2.4 billion increase in fuel derivative collateral deposits related to future periods, and capital expenditures were $587 million. During second quarter 2008, the Company borrowed $600 million under a new term loan secured by 21 aircraft. The Company ended second quarter 2008 with $5.8 billion in cash and short-term investments, which included $4.4 billion in fuel derivative collateral deposits (with a corresponding liability recorded in Accrued Liabilities). At present, the value of the Company’s fuel derivative contracts for third quarter 2008 through 2012 is approximately $4.3 billion with corresponding fuel derivative collateral deposits of $3.7 billion. In addition, the Company had a fully available unsecured revolving credit line of $600 million. Total operating revenues for the six months ended June 30, 2008 increased 12.9 percent to $5.4 billion, while total operating expenses increased 16.9 percent to $5.1 billion, resulting in operating income in first half 2008 of $293 million versus $412 million in first half 2007. Excluding special items, operating income was $341 million and $398 million, respectively, for the six months ended June 30, 2008 and 2007. Net income for the six months ended June 30, 2008 was $355 million, or $.48 per diluted share, compared to $371 million, or $.47 per diluted share, for the same period last year. Excluding special items, net income for the six months ended June 30, 2008 was $164 million, or $.22 per diluted share, compared to $228 million, or $.29 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 future results of operations; (ii) its strategies, initiatives, and revenue opportunities; and (iii) its growth plans. These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the price and availability of aircraft fuel and the Company’s ability to overcome increased fuel costs through fare increases or other revenue initiatives; (ii) 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; (iii) the impact of governmental regulations and inquiries on the Company’s operating costs, as well as its operations generally; (iv) competitor capacity and load factors; and (v) 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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HOU will be adding CS2 on August 19, 2008.
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Southwest Airlines Secures Top Spot as Most Reputable U.S. Airline – It’s not all about service! New York, New York – July 14 – Reputation Institute, a leader in reputation management, released today an in-depth study on consumer perceptions of the nation’s airlines based, in part, on findings from their annual Global Pulse study. Consumer favorite, Southwest Airlines, had the highest reputation among the largest U.S. airline carriers included in the study, followed closely by JetBlue Airways and Continental Airlines. As a whole, the airline industry has a below average reputation in the U.S. market place, with four of the nine carriers measured showing weak reputation standings - scores below 60. Further results from the study shed light on what drives the public’s perceptions of airlines in the midst of growing reports of industry mismanagement, poor service amenities and rising costs. What Drives Reputation Using Reputation Institute’s model, the emotional appeal a company commands in the public’s eye, its reputation, is driven by perceptions of the company’s strength around seven rational dimensions: product/services, innovation, workplace, citizenship, governance, leadership, and financial performance. In the airline industry the most influential dimension of reputation with the American general public is products/services, accounting for 19% of reputation. Growing in importance with the public are governance and workplace issues. Combined, perceptions of these two dimensions explain 30% of reputation for the industry. “The poor reputations of U.S. airlines today is clearly a reflection of their difficulty to rate well on dimension level issues” said Kasper Nielsen, Managing Partner at Reputation Institute. “It isn’t surprising to see Southwest rise to the top as they have been able to maintain their image as a well-run low-cost carrier with a happy workforce” he added. The study revealed that on average only 35% of the U.S. public would recommend their carrier to others. Nielsen further suggested, “Increased attention to the critical areas of reputation in conjunction with a targeted reputation management effort may help airlines win greater support with the public.” The top rankings for U.S airlines are as follows: Company Pulse Score 1 Southwest Airlines 67.72 2 JetBlue Airways 65.92 3 Continental Airlines 61.98 4 American Airlines 60.67 5 AirTran 60.47 6 Delta Air Lines 59.52 7 United Airlines 58.35 8 Northwest Airlines 58.20 9 US Airways 56.10 Survey Methodology This study was conducted online in the U.S. between February and March of 2008 in conjunction with Reputation Institute's Global Pulse 2008. 2008 is Reputation Institute’s third year conducting the Global Pulse study, the largest study of corporate reputation in the world measuring over 1,000 companies in 27 countries annually. This year over 200 U.S. companies were measured using the RepTrak™ tool , providing detailed information on the power and drivers of their reputations in the marketplace. A Pulse score is a measure of corporate reputation calculated by averaging perceptions of 4 indicators of trust, esteem, admiration, and good feeling obtained from a representative sample of at least 100 local respondents who were familiar with the company. Scores range from a low of 0 to a high of 100, Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Scores can be categorized using the below key: Excellent/Top Tier above 80 Strong/Robust 70 – 79 Average/Moderate 60 – 69 Weak/Vulnerable 40 – 59 Poor/Lowest Tier below 40 About Reputation Institute Reputation Institute is a private advisory and research firm specialized in corporate reputation management. With offices and associates in more than 20 countries, Reputation Institute provides knowledge-based consulting services to some of the most respected companies worldwide. Our consulting teams regularly help global clients assess, value and act on their reputations by providing strategic analysis and direction, as well as relevant assistance in developing and implementing reputation measurement and management systems. Reputation Institute also identifies best practices from original research, and we share our cutting-edge findings with clients and members through engagements, seminars, conferences, and publications. The Global Pulse is Reputation Institute’s flagship research study conducted annually with some 60,000 consumers in 27 countries from which emerge detailed ratings of the reputations of the world’s 1000 largest companies. Each year, the results of this study are featured in leading business publications around the world. Visit www.ReputationInstitute.com to learn more about us.
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DALLAS, July 17 -- 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 August 28, 2008 on all shares then issued and outstanding. The 128th consecutive dividend will be paid on September 18, 2008.
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By Terry Maxon Colleen Barrett became just another Southwest Airlines employee Wednesday after stepping down as president. As I was talking to her last week, I heard a story about her and Herb Kelleher I hadn't heard before -- the time he abandoned her at the grocery store. It happened one Saturday years ago, Ms. Barrett remembers: He dropped me at Albertson's, was going to do something and come back. He literally forgot me. I was so mad at him. Of course, he doesn't have a cell phone. He doesn't pick up his townhouse phone, and it doesn't have a recorder. The next day, when I took a taxicab to the office and he was in the office on a Sunday. He went 'Aaaaahhhh! Oh! That's right! I was supposed to pick you up! You can't stay angry at him. You can't stay angry at him even when you're ready to kill him. I have great Kelleher stories. To read more, visit: http://aviationblog.dallasnews.com/archives/2008/07/even-more-of-colleen-barrett.html
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Executive Changes Take Effect Today DALLAS—July 16, 2008—With Herb Kelleher and Colleen Barrett now officially handing over their management titles, previously announced Executive changes at Southwest Airlines take effect today. Southwest Airlines CEO Gary Kelly assumes the additional roles of Chairman of the Board and President. The Board of Directors elected Executive Vice President Ron Ricks to fill Barrett’s position of Corporate Secretary. Additionally, the airline redefined the roles of its three Executive Vice Presidents. Bob Jordan, Executive Vice President Strategy and Planning; is responsible for strategic planning, technology, airport security, facilities, and schedule planning. Ron Ricks, Executive Vice President Corporate Services and Corporate Secretary; is responsible for legal, labor and Employee relations, political and public affairs, and properties. Mike Van de Ven, Executive Vice President and Chief Operating Officer; is responsible for all operations, maintenance, Customer Services, safety, security, and environmental services. Additionally, several Officers will assume new responsibilities, including: Ginger Hardage, Senior Vice President Culture and Communications; is responsible for Culture Services and both Internal and External Communications. Jeff Lamb, Senior Vice President Administration and Chief People Officer; is responsible for Corporate Security, People and Leadership Development, and Purchasing. Daryl Krause, Senior Vice President Customer Services; is responsible for Reservations, Provisioning, Fuel Management, Customer Relations, and Inflight. Jeff and Daryl will also join Southwest’s Executive Planning Committee. “The awesome task before us is to ensure the continued prosperity of Southwest Airlines—one of the greatest success stories in American business,” Kelly said. “We all pledge to continue to keep the LUV alive and the Warrior Spirit strong that Herb and Colleen have inspired in all 34,000 Southwest Employees.” 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
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By Terry Maxon With Colleen Barrett's move from Southwest Airlines president to simply a fulltime employee as of Wednesday, we had a story Tuesday morning marking the occasion. Of course, the story could include only a small bit of our interview with Colleen. Ergo, below, we have more excerpts. DMN: What are you going to do after you step down as president? Colleen: I'm going to do more of the same, just without any authority, without any budget. Of course, that's not that much different. But really I'm very excited. I'm going to do one major change for me, monumental. It seems silly, but it's monumental to me. I'm 63 years old. I've worked since I was a junior in high school. I have worked seven days a week all that time. Not because anyone made me because that's just who I am, that's what I do. I might take off a holiday, but a long weekend would be a long vacation for me. I am literally as of July 18, I am not going to work any more weekends. That is like someone else going on a sabbatical. So that' s huge for me. To read more, visit: http://aviationblog.dallasnews.com/archives/2008/07/more-of-c.html To read Terry's posts from the week that Herb Kelleher stepped down from his role as chariman, visit: http://aviationblog.dallasnews.com/archives/2008/05/herb-week-part-1.html
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What an amazing time and what an amazing tribute to a wonderful lady! I was so privileged to be among the hundreds of Employees gathered this afternoon in the lobby of our Corporate Headquarters to pay honor to the person who has truly been the driving force behind the Culture of Southwest Airlines for so long. It is hard to describe the impact that Colleen has had on the lives of over 90,000 Employees, millions upon millions of Customers, and selfishly, upon me.
If you've ever wondered if the public persona of Colleen is just hype, let me assure you that she is no different when the cameras and bright lights are turned off and it is just one-on-one. When she gives you one of her trademark hugs, you not only KNOW that you've been hugged, you KNOW that she meant it. What you see of Colleen is the real deal, and she really DOES walk the walk.
Many people who are much more eloquent than me will fill these virtual pages with years and years of memories and lots of ways to describe Colleen, but in the few short years that I've known her, all I can say is that she is full of more love for others than many people are, and it would be hard to find someone who gives of themselves more than she does.
Perhaps the greatest, most loving, and most revealing tribute paid is the fact that so many people at Southwest don't call her Colleen. No, they don't call her Mrs. Barrett, either. They just call her "Mom".
Best wishes -- we LUV you Colleen!
Kim
The Artist Formerly Known as External Blog Boy
P. S. To those who wonder how I would know that over 90,000 people have been hired by Southwest over the years, it is because I wasn't standing in the lobby as a visitor -- my SWA employee number is in the high 90,000s! 🙂
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By TERRY MAXON / The Dallas Morning News The mom of Southwest Airlines Co. is about to become mom emeritus. To call Colleen Barrett "Mom" might seem demeaning, considering that she has been the highest-ranking woman in the airline industry for years, even before she was named president of Dallas-based Southwest in 2001. But Ms. Barrett, who steps down from her president's job at midnight today, knows what the label means. "I'm OK with Mom," Ms. Barrett said last week. "I'm OK with Grandma. That's what I said at the shareholders' meeting [May 21]. It's time for me to take the next step with grandmotherhood." Like her longtime boss, Herb Kelleher, who gave up his chairman's job in May, Ms. Barrett is leaving her executive's job but staying with the airline for at least five years, with duties to be defined by chief executive Gary Kelly. To read more, visit: dallasnews.com/sharedcontent/dws/bus/industries/airlines/stories/071508dnbusbarrett.4019e17.html
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Southwest Airlines and Thrifty Team up to Offer Triple Credits to Members of the Carrier's Frequent Flyer Program DALLAS, July 14 -- Southwest Airlines welcomes Thrifty Car Rental as a new preferred partner to the airline's award-winning frequent flyer program, Rapid Rewards. The partnership with Thrifty, effective July 11, 2008, will allow the Southwest Airlines Rapid Rewards' program to acquire new Members from Thrifty and build additional brand loyalty with co-branded promotions. To celebrate the kickoff, now through Oct. 31, 2008, Members can receive triple credit on a weekly rental of five or more days. (That's 1.5 credits per transaction versus the standard 0.5 credit per transaction). For more information, including terms and conditions, visit http://www.southwest.com or http://www.thrifty.com. "This new partnership with Thrifty will bring tremendous value to our Customers and to the Rapid Rewards program," said Ryan Green, Southwest Airlines' Director of Customer Loyalty. "We are very proud to welcome Thrifty onboard to assist us in getting Customers to their favorite destinations." "We are simply elated that Thrifty is joining one of the premier rewards programs in the airline industry," said Brian Carpenter, Vice President, Sales & Marketing, Dollar Thrifty Automotive Group. "We always felt Southwest Airlines and Thrifty would be a natural union for customers looking for exceptional value in the air and on the ground." Since 2004, Thrifty Car Rental has sponsored Southwest Airlines' "Star of the Month" Employee recognition program, providing a free car rental to every featured Employee. Thrifty's sister company, Dollar Rent A Car, has been a Preferred Partner with Southwest Airlines' Rapid Rewards since July 1, 1999. It is fast and easy to earn free travel through Rapid Rewards. Rapid Rewards Members earn credits by flying or using the program's Preferred Partners, like Thrifty Car Rental. It takes just eight roundtrips to qualify for an Award, but Members can accelerate their earnings by using the Southwest Airlines Rapid Rewards Visa Signature Card, doing business with any of the airline's other Preferred Partners, or by purchasing Southwest's Business Select fares when flying. Plus, once it's earned, the Award may be transferred to anyone. The Award is free but subject to the U.S. government September 11th Security Fee of up to $10 roundtrip. About Southwest Airlines 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 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. About Thrifty Car Rental Thrifty Car Rental is a subsidiary of Dollar Thrifty Automotive Group, Inc. (NYSE: DTG), a Fortune 1000 Company headquartered in Tulsa, Oklahoma. Together with its corporately-owned locations and those of its franchise owners, the Thrifty Car Rental brand serves value-conscious travelers from more than 1,028 locations in 68 countries. For additional information, visit http://www.dtag.com or http://www.thrifty.com.
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Colleen Barrett, President of Southwest Airlines was a recent speaker at the Wharton School of Management at the University of Pennsylvania. Her speech to Wharton MBA candidates during the 12th annual Wharton Leadership Conference was about servant leadership. To read the Freight Dawg article and view a video from the event, visit: http://www.freightdawg.com/2008/07/southwest-airli.html
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By Julie Johnsson | Tribune staff reporter Chicago figures large in Southwest Airline's plans to expand overseas for the first time. In excerpts from a late June interview, Southwest CEO Gary Kelly maps out his international strategy and explains the complex fuel hedges that have given his carrier the financial muscle to expand while other airlines contract. On Tuesday, Southwest announced plans to code-share with Canada's WestJet. Kelly, speaking earlier, wouldn't name the low-cost carrier's first overseas partner, but described its likely impact on Midway. KELLY: Chicago is going be one of the No. 1 locations that we will want them to fly to, i.e. Midway. So, it may not be a Southwest flight, but you're going to see more flight activity and we'll be connecting more passengers to Chicago at a minimum. It's a hub-like effect, without us having all the trappings and inefficiencies of a hub-spoke system. So you could have many more destinations being added to Midway by one or two code-share partners. I would see Chicago being an attractive destination from Hawaii -- ATA flew there -- from Canada, certainly, Mexico and probably the Caribbean as well. So, there could be a lot of action, and not just with Southwest flights. Now, eventually, we want to add Europe and Asia as code-share destinations. We can't do everything simultaneously, so we'll pace all this out. We've made the near-international markets our first priority. And to come online in 2009, maybe some of it will spill into 2010. And then we don't have any efforts under way beyond that, but at some point here we will and with a little luck maybe we can add Europe and Asia in 2010, 2011 We're not just thinking that we will code-share internationally. We will very well eventually begin to think about our own flights to these entities. I don't know if Hawaii will ever make sense for us. But certainly Canada, Mexico and the Caribbean ought to be eligible in our own route planning. But it's an added layer of complexity and change and investment compared to where we are. Numbers-crunchers at Southwest Airlines were already studying how to hedge fuel costs when Kelly joined the airline as controller in 1986. Kelly, who was named CEO in 2004, discusses how he convinced the airline's board to start hedging, then to double down its bet. KELLY: If you get a mortgage, you're required to have homeowners insurance. That's all this is. It's a little different form, but it is insurance against catastrophic rises in energy costs. I remember very vividly when Iraq invaded Kuwait. We were paying about 57 cents a gallon for energy [jet fuel] at the time. And it went to 90 cents a gallon in pretty short order. By January of 1991, the advent of the war, we had a program in place. It was primitive. But from that point forward, we've had our "insurance" policy in place every year. We have never lost money with our hedges. To read more, visit: http://www.chicagotribune.com/travel/chicago-southwest-gary-kelly-interview-jul8,0,7106031.story
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