The Southwest and AirTran Charter Departments were excited to participate in providing the transportation needs of college teams, school officials, alumni, and fans to college football bowl games across the country this year.
We flew a record 122 college bowl flights, including 12 flights using 737-800 aircraft, which we’ve never used before in the charter arena. Teams we flew this year included Rice, Texas Tech, and Oklahoma. We also flew the marching bands of both Oregon and Michigan. Alumni and fan charters included the already-mentioned universities plus Washington State, Northern Illinois, Michigan State, Louisville, Kansas State, Iowa, Wisconsin, Baylor, Auburn, and BCS Champs Florida State. We also were honored to transport the Auburn University mascot, War Eagle, to the championship game! Thanks to all the hardworking Southwest and AirTran Employees who were involved in the operation and execution of these charters. You all do an incredible job providing our famous Positively Outrageous Service!
Speaking of outstanding Customer Service, one of our AirTran Flight Attendants Sandra Carter, had the privilege of serving on an Auburn charter flight heading to southern California and said, ”As a HUGE Auburn fan, it was an honor to work this flight. This is by far one of the BEST experiences I have had as a Flight Attendant! I was honored to be a part of this journey with what I call the best fans in the land—the fans of the Auburn University Tigers.”
Apparently the Auburn Fans were quite taken with Sandra, as they shared their inflight experience with The War Eagle Reader. Check it out here!
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01-07-2014
01:36 PM
15 Loves
If you’ve watched the news over the past few days, you know that much of the Midwest, Northeast and sections of the South have been severely impacted by winter storm Ion and sub-zero, record-setting temperatures. Winter is most definitely in full force across most of our country.
As a result of the challenges thrown our way by Mother Nature, Southwest’s operations have been severely affected. Despite our best efforts in preparing for the extreme winter weather, we have been forced to cancel approximately 2,000 flights throughout the weekend and going into Monday, and some media outlets report that over 13,000 flights have been cancelled by all U.S. airlines over the past few days. We believe it’s fair to say that it has been a crazy time for winter air travel.
The good news is that we’ve been working around the clock, doing our best to get passengers where they need to go, which includes adding extra flying where we can. We expect our operation to return to normal throughout the week as weather conditions improve. If you are traveling with us this week, we still encourage you to check Flight Status Information before heading to the airport.
If you are a Customer holding a reservation for travel to/from Chicago Midway (MDW) or other affected cities, you may be eligible to reschedule your flight(s) in accordance with our accommodation procedures. Please visit the MDW Travel Advisory page on southwest.com. For information on travel advisories affecting other cities, please click here.
To rebook your travel online, please click here. Customers who did not purchase a ticket via southwest.com can call 1-800-435-9792 to speak with a Customer Service Representative.
Thanks for your patience as the Employees of Southwest Airlines work diligently to return our operations to normal so that we can deliver the travel experience you know and love onboard each of our flights.
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We would love to continue offering free TV to Customers and expect that we’ll have some news on that soon. Our CEO Gary has mentioned a few times publically that we are not in favor of inflight cell phone usage. We have WiFi on more than 75% of our fleet and our new -800s are delivered WiFi equipped! By utilizing Customers’ own personal devices, we are able to keep up with technology changes without any costly changes on board.
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Oakland First Officer Bryan Turner truly appreciates Oakland Senior Crew Base Coordinator Danielle Nobori, because, for Bryan, Danielle coordinated special efforts to help him get back on the road to recovery from an illness. Bryan came down with the bug shortly before he was to go on a three-day reserve block. He made the call to our Oakland Base, and, before he knew what hit him, Danielle had come by his hotel room to deliver ginger ale, crackers, and warm broth. Thanks for taking care of our Pilots, Danielle!
LUV Report from Oakland First Officer Bryan Turner:
Danielle ... YOU ARE THE AMAZING! Thank you again for coming to my rescue last week after I fell ill during my last trip out to Oakland.
After having just completed a three-day trip and awaiting to start a three-day reserve block the following day, I was hit overnight with a virus. The next morning, after calling-in sick from my hotel bed, I called the Oakland office to let the Chief Pilots know I was out for the count. Without a second thought, you generously offered to immediately leave the office to gather whatever I needed in order to feel better. Not only did you go out and purchase medication, you brought ginger ale, crackers, and broth for me to try to eat.
What made this above-and-beyond is that you HAND DELIVERED it to me at the hotel! Later in the day, before heading home for the day, you checked up on me once more to see how I was feeling. Being sick while home is bad enough, but 2,500 miles from home in a hotel is miserable. Your compassion made me feel that I was not suffering through it alone. Your understanding of that situation and care for a fellow Employee makes you the embodiment of the SOUTHWEST SPIRIT. After delivering my rescue care package, as you were leaving, you said something that I will never forget and succinctly sums up how you feel about your job as a Crew Base Coordinator. You simply said "We love our Pilots." From me to you, we LUV having you as our Oakland Crew Base Coordinator.
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12-25-2013
06:00 PM
1 Love
Our Employees show their love for our military veterans in many different ways—Baltimore Customer Service Supervisor Sue Lee says it with home-baked goodies and delicious delicacies! Her Coworker, Baltimore Customer Service Supervisor Karen Voccia, sent in a LUV Report praising Sue for the culinary kindness that she routinely shows to Honor Flight veterans and volunteers. One way to a person’s heart is definitely through the stomach, and Sue is touching many lives with her tasty treats!
LUV Report from Baltimore Customer Service Supervisor Karen Voccia:
Sue Lee ... Has anyone told you that you are incredible?I sure hope so because you deserve recognition for your amazing Servant's Heart.
While it is hard to pick just one thing to draw attention to, I'll pick Wednesday November 13, 2013. You are a champion of Honor Flights and here in Baltimore we have so many that it can be easy to forget who is being honored. But not for you, Sue! You woke up early Wednesday morning and with your own time and money, baked goodies and prepared treats for all of the valued Honor Flight Customers and Volunteers. Into the office you walked with an enormous bag of chocolates, cookies, and mints all individually wrapped in a sweet packages. Are you related to Santa Claus?
Sue, my Servant's Heart does not match yours in size or effort but you are certainly an inspiration on how we can all be better. Thanks for YOUR service!
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12-24-2013
07:00 PM
12-24-2013
07:00 PM
12-23-2013
12:00 PM
12-23-2013
12:00 PM
Making a last minute trip for the holidays? Where's the best airport to grab a last minute gift? #SWAbesties
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12-23-2013
12:00 PM
Nothing will get you more in the holiday spirit than Spirit's December issue. After all, it is their annual guide to spirits! And not the kind that go, "boo." The ones that make you go, "aahhh." Here are a few other foodie goodies to warm your belly. Cheers and Happy Holidays!
Masala Milk Punch
Dave Kwiatkowski from Sugar House in Detroit used masala chai tea as the inspiration for this cocktail that could warm even the coldest holiday Grinch.
Chickpea Bites
This quick and tasty snack comes to us from Louis DiBiccari with Tavern Road in Boston. Made with five ingredients, these savory snacks can be cut into any shape you want ... even Christmas Trees!
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12-19-2013
06:12 PM
1 Love
San Diego Customer Service Supervisor Katie Kuhn and San Diego Station Administrator Barbara Pellegrino cooked up some holiday cheer for our troops this Thanksgiving! They organized a turkey dinner for the servicemen and women at the San Diego USO, and they consistently serve these men and women—and recruit other San Diego Employees to do the same—yearround. Great job, ladies!
LUV Report from San Diego Customer Service Supervisor Linda Losey:
I would like to give a shout out to Barbara and Katie for thinking of our Troops this time of year and organizing a fabulous Turkey dinner for them. They get our San Diego Team involved and get volunteers to help with food and serving at the Airport USO. Our USO here in San Diego is a very busy one and I'm sure all the Service Men and Women were very appreciated to have a little bit of home comfort brought here to them while they are away from home. Thanks for organizing an appreciated event for our Troops!
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12-17-2013
01:16 PM
12-17-2013
01:16 PM
Hi Amimperatrice ... the PDF with the chart is hyper linked in the story. I bolded it to make it more prominent. Hope this helps!
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Fares as Low as $89 Each-Way Introduce New Routes on East and West Coasts
Dallas—Dec. 16, 2013—Southwest Airlines (NYSE: LUV) is helping travelers get ready for summer vacation by extending its schedule through June 2014. Customers will find many new travel options for their favorite destinations, including New York; San Diego; Portland, Ore.; and Atlanta for as low as $89 each-way for travel every day except Fridays and Sundays between June 8 and 30, 2014! (Alternate travel dates and blackout dates apply to travel between San Diego and New Orleans; see Fare Rules.)
In the wake of the recent slot reallocation concerning New York’s LaGuardia Airport, the airline is increasing service between LaGuardia and Nashville, Houston Hobby, Chicago (Midway), and Akron-Canton, Ohio. The new service begins on May 11, 2014.
“We’re making big news coast to coast as we open up new flights in the spring,” said Bob Jordan, Southwest Airlines Executive Vice President and Chief Commercial Officer. “We’re adding service in Southwest stronghold cities like San Diego and Portland, Ore., while also bringing new low-fare service to our New York Customers.”
Southwest Airlines also announced today new nonstop service between San Diego and Orlando; New Orleans; Portland, Ore.; and Seattle/Tacoma. The new flights come as Southwest gets ready to celebrate its 32 nd anniversary of serving San Diego’s Lindbergh Field.
The airline also is making waves in Portland, Ore., by offering new nonstop destinations to Customers in the northwest. That includes the two daily nonstop flights to San Diego, as well as daily service to Baltimore/Washington, Chicago (Midway), and Houston Hobby.
As Southwest moves toward its final phase of integrating AirTran Airways, new nonstop service at Hartsfield-Jackson Atlanta International Airport includes service to Detroit, Minneapolis/St. Paul, Milwaukee, and Pittsburgh.
NEW FLIGHTS STARTING AT $89 ONE-WAY (See Fare Rules below)
- $89 one-way nonstop between Milwaukee and Washington, D.C. (DCA)
- $89 one-way nonstop between Boston Logan and Akron-Canton
- $89 one-way nonstop between San Diego and Portland, Ore.
- $89 one-way nonstop between San Diego and Seattle/Tacoma
- $99 one-way nonstop between New York’s LaGuardia and Akron-Canton
- $109 one-way nonstop between Atlanta and Detroit
- $109 one-way nonstop between Atlanta and Pittsburgh
- $129 one-way nonstop between Atlanta and Minneapolis
- $139 one-way nonstop between Akron-Canton and Orlando
- $149 one-way nonstop between San Diego and Orlando
- $149 one-way nonstop between San Diego and New Orleans
Book now as these exceptionally low fares won’t last long. To book these flights today, visit southwest.com.
SOUTHWEST FARE RULES
Fares are available only on southwest.com or swabiz.com and can be purchased today through Dec. 20, 2014, 11:59 pm for the respective time zone of the originating city for select destinations. Fares valid for travel June 8 through June 30, 2014. Fares valid for travel to New Orleans April 8 through May 31, 2014. Blackout dates for New Orleans include April 24 through May 5, May 22, May 24, and May 26, 2014. Travel valid every day except for Fridays and Sundays. Some flights are operated by AirTran Airways. Displayed fares include all government taxes and fees. Seats are limited. Fares may vary by destinations, flight, and day of week and won't be available on some flights that operate during very busy travel times and holiday periods. Fares are nonrefundable but may be applied toward future travel on Southwest Airlines. Fares may be combined with other combinable fares. If combining with other fares, the most restrictive fare rules apply. When combining fares, all rules and restrictions apply. Fares are not available through the Group Desk. Any change in the itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only.
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Hi Matthew ... this is not another charge, but is simply an option for Customers who want to be able to message, but don't want to purchase the full WiFi package.
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Our #12DaysofLUV contest is back! Each day we will reveal a challenge and you can submit your entry via @SouthwestAir on Instagram using the hashtag #12DaysofLUV for your chance to win a $1,000 Southwest gift card.
On the 1st day of #12DaysofLUV, we would LUV to see your Dr Pepper dressed as a Southwest Employee! Submit by 6 CST. Stay tuned to Southwest's Facebook page for information on the other days! Good Luck!
Official Rules: http://social.southwest.com/ffE
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DALLAS—Dec. 5, 2013— Southwest Airlines (NYSE: LUV) has acquired 12 takeoff and landing slots (for six roundtrip flights) at New York’s LaGuardia Airport (LGA) being divested by American Airlines as part of its merger with US Airways. In addition, Southwest gained permanent control of 10 takeoff and landing slots (for five roundtrip flights) that it currently operates under a lease from American. Details of the transactions are confidential. Southwest plans to begin its new service at LGA in May 2014. Details of the new service will be available later this month.
“We are pleased the U.S. Department of Justice approved our agreement with American Airlines to acquire these slots at LaGuardia,” said Bob Jordan, Southwest’s Executive Vice President and Chief Commercial Officer. “This is terrific news for low-fare Customers who want greater access to New York City.”
Southwest and its subsidiary AirTran Airways currently operate 27 daily roundtrip flights to and from LGA to eight nonstop destinations. The acquired slots will allow the airlines to add six daily roundtrips.
Southwest Customers have consistently shown increasing demand for service into the New York City metropolitan airports. Southwest currently serves Newark Liberty International, LaGuardia Airport, and Long Island MacArthur Airport. These six additional roundtrips at LGA will strengthen Southwest’s service to and from the New York City area.
“We also look forward to bidding on the slots at Washington’s Reagan National Airport (DCA) that American also is required to divest,” Jordan added. “That will be conducted as a separate process, and was not a part of this slot bid.”
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DALLAS—Dec. 5, 2013—Southwest Airlines announced today its decision to close three cities in the airline’s network. On June 7, 2014, Southwest will cease operations at Branson Airport (BKG), Key West International Airport (EYW), and Jackson-Evers International Airport (JAN). Southwest began service to Jackson-Evers International in 1997. The airline added Branson Airport and Key West International Airport to its route map in 2012 as part of its integration with AirTran, a wholly-owned subsidiary.
“Unfortunately, the level of local demand no longer allows Southwest to profitably serve these markets,” said Bob Jordan, Southwest’s Executive Vice President and Chief Commercial Officer. “Southwest takes pride in becoming not only a great choice for air travel in the cities we serve, but we also become a member of the community. These decisions are never easy.”
The Company’s priority is to take excellent care of its dedicated Employees, Partners, and Customers in these markets. Southwest Employees at these locations have performed superbly and will have the opportunity to move elsewhere within the airline, after operations cease next year.
Over the next six months, Southwest will operate its full schedule at each of these cities, and there will be no disruption to reservations for travel through June 6, 2014. For exact service details for each city, visit http://www.swamedia.com/channels/About-SWA/releases.
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12-02-2013
08:20 PM
4 Loves
If I had to describe December in one word, it would be “wrap.” After all we wrap pipes, plants, and ourselves to fight the cold temperature. We wrap holiday presents in colorful paper and ribbons to add an element of mystery and surprise for our loved ones. And we wrap up the year by taking a moment to reflect on what we’ve accomplished.
In December, Nuts will wrap things up by bringing you stories that will brighten your winter and make your holiday travel merry. So, stay tuned! And while you are standing by, please let me know what kind of stories you would like to hear from us!
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12-02-2013
06:22 PM
12-02-2013
06:22 PM
Thanks for the advice Crystal! I'm sure you are awesome with the kiddos 🙂
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... for all of our wonderful Customers and Employees!
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11-20-2013
01:28 PM
Hi Sandra … I’m sorry to learn of your disappointment. While I am unable to answer your question, I’ve forwarded your comment to our Customer Relations folks for response.
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First off, let me introduce myself. My name is Millie Tidwell, and I recently took the reigns as Managing Editor of Nuts About Southwest. I have had the pleasure of contributing to the blog since its inception in 2006 and worked alongside the “Blog Boy” himself, Southwest’s Corporate Historian Brian Lusk until his passing last year.* All this to say … this isn’t my first nutty rodeo!
Moving forward, expect to see a monthly “From the Editor”-type post that will set the stage as to what you can expect from Nuts in the following weeks. And since November is naturally a time of giving thanks, this month’s theme is just that … “Giving Thanks.”**
From thanking our service men and women who safeguard our country and celebrating Thanksgiving, to helping make the sometimes “thankless” job of being a parent a little easier, we have a great month planned. Stay tuned!
*We still miss you, Brian!
** I know what you’re thinking and I promise that I won’t be so prosaic every month!
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11-06-2013
07:13 PM
11-06-2013
07:13 PM
Hi Dale ... I'm sorry to learn of your disappointment. I've forwarded your comment to our Customer Relations folks. On a personal note, thank you for your service.
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DALLAS, TEXAS - October 24, 2013 - Southwest Airlines Co. (NYSE:LUV) (the “Company”) today reported its third quarter 2013 results:
Record third quarter net income, excluding special items*, of $241 million, or $.34 per diluted share, compared to third quarter 2012 net income, excluding special items, of $97 million, or $.13 per diluted share. This was in line with the First Call consensus estimate of $.34 per diluted share.
Record third quarter net income of $259 million, or $.37 per diluted share, which included $18 million (net) of favorable special items, compared to net income of $16 million, or $.02 per diluted share, in third quarter 2012, which included $81 million (net) of unfavorable special items.
Return on invested capital* (before taxes and excluding special items) for the 12 months ended September 30, 2013, of 11 percent, as compared to 7 percent for the 12 months ended September 30, 2012.
Cash and short-term investments at September 30, 2013, of $3.3 billion.
Cash flow from operations of $428 million, and capital expenditures of $268 million, resulting in $160 million in free cash flow* in third quarter 2013.
The Company returned approximately $178 million to Shareholders during third quarter 2013 through the payment of $28 million in dividends and the repurchase of approximately $150 million in common stock under an accelerated share repurchase program executed in September 2013. Since August 2011, the Company has repurchased approximately $1.1 billion, or approximately 111 million shares, under its $1.5 billion share repurchase authorization.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “We are very pleased to report a record third quarter earnings performance. Our People delivered very strong year-over-year earnings growth as we continued to transform our Company for the future. Our continued focus on strategic initiatives is paying off, and I am very proud of our outstanding Employees for a very solid third quarter financial performance.
"Third quarter revenues were also a third quarter record, with total operating revenues per available seat mile (unit revenues) increasing 4.5 percent year-over-year. Especially considering our increase in stage length and seat density, this is a very strong performance. Further, we continue to have a high number of markets under development as we convert AirTran routes into Southwest routes and optimize our combined networks. Finally, about 15 percent of our system is still operating under the AirTran brand. As the network stabilizes in the future, AirTran becomes fully converted, and fewer schedule changes are made, this should provide a further boost to unit revenues. While unit revenue trends were impacted by the recent government shutdown, current bookings for the combined November/December holiday period are strong.
"We are on track with our plan to fully integrate AirTran into Southwest Airlines by the end of next year, and we expect to achieve approximately $400 million in annual net pre-tax synergies in 2013. Our efforts to optimize our connected networks continued during third quarter, with the conversion of AirTran's service at Grand Rapids Gerald R. Ford International Airport to Southwest. Southwest's entrance to western Michigan doubled the service previously offered by AirTran, with a total of six daily nonstop departures to Baltimore/Washington, Orlando, St. Louis, and Denver. We will take another significant step towards full integration with our November 2013 schedule, as we reschedule AirTran's Atlanta flights into a point-to-point operation.
"Our plan to add international capabilities for Southwest in 2014 is on track. We reached an exciting milestone last month with the ground breaking on Southwest's first international terminal in our 43-year history. The five-gate facility at Houston's William P. Hobby Airport, planned to open in 2015, will accommodate Southwest service to potential destinations in the Caribbean, Mexico, Central America, and northern South America.
“Our fleet modernization efforts are continuing as planned. During third quarter 2013, we placed one new Boeing 737-800 and two previously owned Boeing 737-700s into active service, and retired four Boeing 737-500 aircraft. In addition, we transitioned the first of AirTran's 88 Boeing 717-200s out of the fleet, and removed 11 more from active service in preparation for transition. At the end of the third quarter, all Southwest Boeing 737-700s, 78 Boeing 737-300s, and 14 AirTran Boeing 737-700s converted to the Southwest livery had been retrofitted with the Evolve interior. Following a two percent year-over-year increase expected this year, our available seat miles are not expected to increase year-over-year in 2014. As we continue to execute our strategic initiatives, our priorities remain: optimize the network; run an excellent airline operation; provide outstanding and friendly Customer Service; and achieve and sustain our targeted financial returns.
"Our third quarter economic fuel costs declined 5.7 percent year-over-year driven by lower prices per gallon and less fuel consumed per available seat mile. We currently expect another significant year-over-year decrease in our fourth quarter 2013 economic fuel costs. Based on relatively stable current market prices and our existing fuel derivative contracts, as of October 21 st , we expect our fourth quarter economic fuel price per gallon to be comparable to our third quarter 2013 economic fuel price per gallon.
"Excluding fuel, special items, and profitsharing, our unit costs increased slightly compared to third quarter last year, as expected. Based on current trends and ongoing benefits anticipated from our fleet modernization efforts, we expect our fourth quarter 2013 unit costs, excluding fuel, special items, and profitsharing, to be roughly flat versus a year ago.
"It is imperative that we preserve our financial health and return value to our stakeholders. Our balance sheet, liquidity, and cash flows are strong, and we are aggressively managing our debt and total invested capital. Our People are exceptional and they are working exceptionally hard. I am proud of them and these strong third quarter results."
Awards and Recognitions
Ranked first Value Airline Brand of the Year in the 2013 Harris Poll EquiTrend Rankings
Named one of the Best Economy Class Flight Experience in 10 Best Readers' Choice travel award contest sponsored by USA TODAY
Ranked fifth on the International Council on Clean Transportation list of the most fuel efficient domestic passenger airlines
Financial Results
The Company's third quarter 2013 total operating revenues increased 5.5 percent to $4.5 billion, while operating unit revenues increased 4.5 percent, on a 1.0 percent increase in available seat miles and an approximately 4.0 percent increase in average seats per trip, all as compared to third quarter 2012. Total operating expenses in third quarter 2013 decreased 2.4 percent to $4.2 billion, as compared to third quarter 2012. The Company incurred costs (before taxes) associated with the acquisition and integration of AirTran, which are special items, of $28 million during third quarter 2013, compared to $145 million in third quarter 2012. Cumulative costs associated with the acquisition and integration of AirTran, as of September 30, 2013, totaled $391 million (before profitsharing and taxes). The Company expects total acquisition and integration costs to be no more than $550 million (before profitsharing and taxes). Excluding special items in both periods, total operating expenses of $4.1 billion in third quarter 2013 were comparable to third quarter 2012.
Third quarter 2013 economic fuel costs were $3.06 per gallon, including $.01 per gallon in favorable cash settlements from fuel derivative contracts, compared to $3.16 per gallon in third quarter 2012, including $.03 per gallon in unfavorable cash settlements from fuel derivative contracts. Based on the Company's fuel derivative contracts and market prices as of October 21 st , fourth quarter 2013 economic fuel costs are expected to be in the $3.05 to $3.10 per gallon range, which is significantly below fourth quarter 2012's economic fuel costs of $3.32 per gallon. As of October 21 st , the fair market value of the Company's hedge portfolio through 2017 was a net asset of approximately $135 million. Additional information regarding the Company's fuel derivative contracts is included in the accompanying tables.
Excluding economic fuel expense, special items, and profitsharing in both periods, third quarter 2013 operating costs increased 2.0 percent from third quarter 2012, and increased 1.0 percent on a unit basis.
Operating income for third quarter 2013 was $390 million, compared to $51 million in third quarter 2012. Excluding special items, operating income was $439 million in third quarter 2013, compared to $208 million in the same period last year.
Other income in third quarter 2013 was $29 million, compared to other expenses of $18 million in third quarter 2012. This $47 million swing primarily resulted from $59 million in other gains recognized in third quarter 2013, compared to other gains of $10 million recognized in third quarter 2012. In both periods, these gains primarily resulted from unrealized mark-to-market gains/losses associated with a portion of the Company's fuel hedging portfolio, which are special items. Excluding these special items, third quarter 2013 had $19 million in other expense, compared to $18 million in third quarter 2012, primarily attributable to the premium costs associated with the Company's fuel derivative contracts. Fourth quarter 2013 premium costs related to fuel derivative contracts are currently estimated to be approximately $22 million, compared to $3 million in fourth quarter 2012. Net interest expense in third quarter 2013 of $30 million was comparable to third quarter 2012.
For the nine months ended September 30, 2013, total operating revenues increased 2.8 percent to $13.3 billion, while total operating expenses of $12.4 billion were comparable to the same period last year. Operating income for the nine months ended September 30, 2013, was $893 million, compared to $532 million for the same period last year. Excluding special items in both periods, operating income was $1.0 billion for the nine months ended September 30, 2013, compared to $702 million for the same period last year.
Net income for the nine months ended September 30, 2013, was $542 million, or $.75 per diluted share, compared to $343 million, or $.45 per diluted share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2013, was $569 million, or $.79 per diluted share, compared to $352 million, or $.46 per diluted share, for the same period last year.
As of October 23 rd , the Company had approximately $3.6 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion. Net cash provided by operations during third quarter 2013 was $428 million, and capital expenditures were $268 million. During third quarter 2013, the Company returned approximately $178 million to its Shareholders through the payment of $28 million in dividends and the repurchase of approximately $150 million in common stock under an accelerated share repurchase program with a third party financial institution. On September 6, 2013, pursuant to the accelerated share repurchase program, the Company advanced the $150 million to the financial institution and received approximately 11.5 million shares of the Company's common stock. The specific number of shares that the Company ultimately will repurchase under the accelerated share repurchase program will be determined based generally on a discount to the volume-weighted average price per share of the Company's common stock during a calculation period to be completed in fourth quarter 2013. At settlement, under certain circumstances, the third party financial institution may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the third party financial institution.
For the nine months ended September 30, 2013, net cash provided by operations was $2.2 billion, and capital expenditures were $995 million, resulting in free cash flow of approximately $1.2 billion. For the nine months ended September 30, 2013, the Company repurchased approximately $501 million in common stock, or approximately 38 million shares. Since August 2011, the Company has repurchased approximately $1.1 billion, or approximately 111 million shares, of common stock under its $1.5 billion share repurchase authorization. The Company repaid $267 million in debt and capital lease obligations during the nine months ended September 30, 2013, and intends to repay approximately $46 million more in debt and capital lease obligations during fourth quarter 2013.
*Additional information regarding special items is included in the accompanying reconciliation tables. See Note Regarding Use of Non-GAAP Financial Measures.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s financial outlook and projected results of operations; (ii) the Company’s network plans, expectations, and opportunities; (iii) the integration of AirTran and the Company's related financial and operational plans and expectations, including the anticipated timing of full integration and the expected benefits and costs associated with the integration; (iv) the Company's fleet plans, including its fleet modernization and capacity plans and expectations; (v) the Company's plans and expectations related to managing risk associated with changing jet fuel prices; and (vi) the Company's expectations with respect to liquidity (including its plans for the repayment of debt and capital lease obligations). 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) demand for the Company's services and the impact of economic conditions, fuel prices, and actions of competitors (including without limitation pricing, scheduling, and capacity decisions and consolidation and alliance activities) on the Company's business decisions, plans, and strategies; (ii) the Company's ability to effectively integrate AirTran and realize the expected synergies and other benefits from the acquisition; (iii) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (iv) the Company's ability to timely and effectively prioritize its strategic initiatives and related expenditures; (v) the Company's dependence on third parties, in particular with respect to its fleet plans; (vi) changes in fuel prices, the impact of hedge accounting, and any changes to the Company's fuel hedging strategies and positions; (vii) the impact of governmental action and regulation on the Company's operations; and (viii) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
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10-31-2013
04:06 PM
3 Loves
Watch Southwest's CEO Gary Kelly transform into Phil from Duck Dynasty!
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Think Halloween at Southwest is not all its “quacked” up to be? Think again ... our Halloween “dynasty” is back, and stronger than ever!
Weeks ago, you all answered “the call” in baiting the hook with suggestions for Gary Kelly’s Halloween costume. Y’all came up with boatloads of great suggestions, but the one that was ultimately chosen has been camouflaged for weeks.
Well, you can finally breathe a “Si” of relief. Southwest Airlines CEO, President, and Chairman of the Board is … Phil from Duck Dynasty!
Crazy? Maybe … but, as they say, “birds of a feather flock together.” Gary, aka “Phil,” will be accompanied throughout the day by Ethel Lewis as Ms. Kay, Julie Hildebrand as Willie, Shelley Beckman as Korie, Nan Barry as Jase, Andrea Mathews as Missy, and Vance Toler as Si.
Similar to Phil’s Family, the Southwest Family is one that works and plays together, conjuring up a good ol’ time. Happy HalloWN, y’all – quack, quack!
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The October issue of Spirit not only covers great places to visit, but also great places to chow down and quench your thirst. Check out this yumminess!
Pasa Negra
Alexandra Bookless from The Passenger in Washington, D.C. shares her interpretation of an Old Fashioned, using mescal instead or rye, and sherry rather than sugar. Ole!
Bannock
This quick bread comes to us from Paul Berlund with The Bachelor Farmer in Minneapolis, MN. It is buttery and flaky and more indulgent than what’s typically served around a campfire.
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September is one scrumpdillyicious issue of Spirit Magazine! Behind the delicious chocolate chip cookie cover, but before the story of Famous Amos, lies the yumminess of September’s Eat and Drink section. Bon appetit!
Prabu Punch
Joaquin Simo of New York’s Pouring Ribbons gives pumpkin an Indian spin by creating a syrup using pumpkin puree and garam masala. Named after a character in the book Shantaram, this bourbon-based cocktail uses lemon juice, orange cordial, and a dash of bitters to round out the flavors.
Poblano Mac ‘n’ Cheese
Duane Loftus, sous chef at Merchants Restaurant in Nashville, starts his mac ‘n’ cheese with heavy cream and sharp white cheddar cheese. Then he adds in diced, grilled poblano peppers; crumbled, crispy bacon; and sliced, sweet cherry tomatoes. Top off with chopped scallions, and you have a filling dish that would please any mac ‘n’ cheese lover!
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In the Southwest Airlines Communication Department, part of our job is to monitor various media channels for mentions of our airline. This mention by photographer Daniel Bedell popped on our radar as he blogged about is photography session for the August Spirit Magazine. Daniel photographed our August Freedom Story, Southwest Rapid Rewards A-List Member David Nevins, at the Baltimore Ravens General Offices, and was surprised by a very guest—the Vince Lombardi Trophy. Below is Daniel's blog post.
Featured In: Spirit Magazine
by Daniel Bedell
Ravens Hon! I was thrilled to have the opportunity to photograph the Raven’s Superbowl Trophy recently for Spirit, Southwest Airlines’ in-flight magazine. It’s lighter than it looks! Presented in the photo by David Nevins, founder and president of Nevins & Associates in Baltimore. It was quite the experience to be around the trophy, which came with it’s own personal care taker…who did not seemed to excited about our one handed hoisting, but come on you got to.
You can check out the feature on all Spirit flights but only here can you enjoy me holding the trophy with an epically scraggly hair day.
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It's a new month, which means that there are two new yummy recipes courtesy of Spirit Magazine. Check out the August 2013 issue for the full recipes. Enjoy!
Sherry Cobbler
Kirk Estopinal of Bellocq makes this cool cocktail with fruit, superfine sugar, and of course, sherry. This isn't your granny's cobbler!
Asparagus Bread Salad
Naomi Pmeroy, chef/owner of Beast, uses artisanal bread, asparagus, lemon, and shaved Parmigiano-Reggiano in the this unusual salad. As a carb-aholic, this is my kind of salad!
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08-05-2013
07:45 PM
4 Loves
Hi Debra! So glad that Franky and Pat took such great care of you. I'll forward your compliment to our Customer Relations, folks so they can get some kudos sent their way. Thanks!
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08-05-2013
07:37 PM
08-05-2013
07:37 PM
How did we miss such great av terms! I know them all except for "trolly dolly." Can anyone fill me in on that one?
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