Southwest Airlines Community

Southwest is a proud sponsor of the Sundance Film Festival, and part of that sponsorship is being able to see the fruits of our labor during festival week. The following is a live chronicle of what the Southwest Sundance Team is doing out here, along with a few completely unrelated anecdotes along the way.    Wednesday, January 25 4:23PM  My time is winding down.  The end is nigh.  What a great experience this has been.  The winter air is biting, but the scenery is beautiful.   Last night, I caught the movie GOATS, directed by Christopher Neil.  David Duchovny plays "Goat Man," a botanist in Arizona who watches over Ellis, a teenager getting ready for prep school (is that redundant?) and caught in the middle of separated parents who can't see eye to eye.  That's my abbreviated, amateur summation, anyway.    Tomorrow, I'll be sharing a plane ride with Mr. Neil, primarily taking your questions via Twitter, and also asking a few of my own.  You can follow along by searching the hashtag #GOATS, or by simply paying attention to our @SouthwestAir account.   In the meantime, I'm about to head to Main Street for a bite to soak it all in one last time. This place is brimming with art and culture.  If these walls could talk...   A Preserved Banksy Piece, Near The Egyptian Theater - Brooks   Tuesday, January 24 1:25PM We're regulars now.  I walk around waving to the locals, expecting them to wave back (some do, most don't).  It's been really cool to see Southwest integration in several films, and around the festival.  Most recently, we got back from volunteering with several Southwest Employees at one of the holding tents, where ticketholders and waitlist hopefuls stay warm.  We handed out peanuts, pretzels, and a chance to win roundtrip tickets on Southwest (good luck, everyone!).     Sunday night, we sponsored the Sundance Late Night Lounge, a place where filmmakers and their constituents were able to relax, mingle, and talk about their industry.     Tonight, I have the privilege of attending the world premiere of GOATS.  Thursday, I'll be sharing a plane with the film's director, Christopher Weir, and conducting a live tweetup.  So if you have any questions for Christopher, be sure to leave them in the comments section, or use the #GOATS hashtag on Twitter.   - Brooks Sunday, January 22 12:45PM Last night, we continued our Sundance experience by sponsoring a Happy Hour and an exclusive s, creening of the film Robot and Frank.  The crazy blizzard outside did make for a challenging drive for some, but it didn’t keep the die-hard film buffs and Southwest fans from joining us for this fun evening...but seriously the weather was nuts!  Kudos to Today’s Mama for helping us host a fun Recharge Happy Hour at the Blind Dog restaurant.  All attendees received an awesome swag bag, which included sweet headphones, iPod speakers, Southwest peanuts, local cider beer, and festive Utah popcorn.  Here’s a pic we snapped before Whitney ate all the popcorn:   At the film, Ashley Dillon welcomed our guests and gave away roundtrip tickets on Southwest to two lucky attendees…you can probably imagine the craziness that ensued when she told everyone to look under their armrests for the tickets! Southwest Ticket Hunt The film itself was a sweet story set in the future where people hire robots as personal assistants, health care aides, and librarians!  It was thought provoking, endearing, and witty (and definitely made me want a robot someday).  Well, Brooks has his Cousin Eddie hat on which means it’s time for us to hit up Main Street to give away more tickets to films throughout the week!  Follow us on Twitter if you are interested in snagging some!  Check ya later! Brooks with Two Ticket Winners Gary and Erica - Christi McNeill Saturday, January 21 10:38AM We awoke to a blizzard. Yesterday, the mountains were crystal clear in the distance, and today, they are clouded by a constant snow.  I appreciated the mountain view, but this wintery aesthetic is equally inviting.     Last night, we told you (and showed you) a little about our integration into Sundance. We were also honored to be able to attend the world premiere of Celeste and Jesse Forever, starring Rashida Jones and Andy Samberg.     Rashida Jones, who co-wrote the film with Will McCormack, explained the film was about, "Our definition of happiness, and how it doesn't always end up being what we thought it would."   The cast of Celeste and Jesse Forever (minus Rashida Jones, who is far right)   Next week, our own Stephen M. Keller will shoot a short documentary about the film's director, Lee Toland Krieger, as he travels to Boston to showcase his film.  We're so excited to host such a unique experience on Southwest.   We're also putting the Southwest experience on the ground, like you saw yesterday with our Egyptian Theater integration.  We have these signs (pictured below), to help direct ticket holders, pass holders, and film-going hopefuls.   .   Tonight, we're going to host Customers, and Southwest Friends & Family, at a happy hour and private screening.  More to come on that later!   - Ashley Dillon Saturday, January 21  12:08AM  Whew. Time flies.  We've been to headquarters, walked past the Egyptian, and got our Sundance bearings. Also got a little glimpse of the street life (a piano man and violist, and a puppeteer). Very cool.  It makes sense after thinking about it, but I originally didn't anticipate so much abstract art to be going on.   Time for bed, but as promised, here's a little glimpse at Southwest's Sundance influence:     'til tomorrow (or later today, as it were!).   - Brooks Friday, January 20  1:34PM  We've arrived. There's a lot of snow on the ground. We took a shuttle from SLC to Park City, and played a mean game of Catch Phrase on the way.  Fred, who drove us, is a gamer; a true Catch Phrase encyclopedia.    We're now planning to visit our space at festival headquarters (complete with charging stations and our business seats), and also the famed Egyptian Theater, which is apparently decked out with a Southwest Airlines theme.  Having never been here, this is all awesome and exciting.  Can't wait to see what the main drag of the festival looks like.  I'll be back later, with pictures!   By the way, don't forget to enter our Viddy contest!   - Brooks ... View more

The big announcement is here.  You've seen it plenty now... Evolve: The New Southwest Interior.    We had a lot of other great posts this week, too. Our esteemed Coworker, Karen Voelkel, celebrated thirty years at Southwest, and wrote about the changes she's seen along the way.    James' aeronautical chart prank is also back, and still as hilarious as ever.   Then there was the heartwarming story of Tacey and her family, who we helped fly down to the National Finals Rodeo.   Finally, remember to sign up for our Viddy contest!   ... View more

DALLAS, TEXAS – January 19, 2012 – Southwest Airlines Co. (NYSE:LUV) (the “Company”) today reported its fourth quarter and full year 2011 results.  Fourth quarter 2011 net income was $152 million, or $.20 per diluted share, which included $86 million (net) of favorable special items.  This compared to net income of $131 million, or $.18 per diluted share, for fourth quarter 2010, which included favorable special items totaling $16 million (net).  Excluding special items, fourth quarter 2011 net income was $66 million, or $.09 per diluted share, compared to net income of $115 million, or $.15 per diluted share, in fourth quarter 2010.  This exceeded Thomson’s First Call mean estimate of $.08 per diluted share for fourth quarter 2011.  Additional information regarding special items is included in this release and in the accompanying reconciliation tables.  For the full year 2011, net income was $178 million, or $.23 per diluted share, which included $152 million (net) of unfavorable special items. This compared to $459 million, or $.61 per diluted share, for full year 2010, which included $91 million (net) of unfavorable special items.  Excluding special items, full year 2011 net income was $330 million, or $.43 per diluted share, compared to net income of $550 million, or $.74 per diluted share, for full year 2010.   Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “Excluding special items, fourth quarter 2011 net income was $66 million, and full year 2011 net income was $330 million.  We had an outstanding revenue performance.  Our fourth quarter operating revenues were a record $4.1 billion.  Fourth quarter passenger revenues were strong, driven by record yields and continued high load factors.  Compared to the prior year, our fourth quarter passenger unit revenues increased 8.2 percent (on a combined basis, as defined below).  Based on current traffic and booking trends, we expect another strong passenger revenue performance in first quarter of 2012.    “While it is always disappointing to report a year-over-year decline in profits (excluding special items), the fourth quarter and full year declines were primarily caused by significantly higher fuel prices.  Our fourth quarter economic fuel costs per gallon increased 33.7 percent to $3.29, compared to our combined fuel costs of $2.46 per gallon in fourth quarter last year.  Our full year 2011 combined economic fuel costs were $3.18 per gallon, an increase of 34.7 percent, compared to our combined fuel costs of $2.36 per gallon last year.  Based on market prices as of January 13 th , our first quarter 2012 economic fuel costs, including fuel taxes, are estimated to be approximately $3.35 per gallon, compared to our combined economic fuel costs, including fuel taxes, of $2.95 per gallon in first quarter last year.  High energy prices demand continued focus on improving productivity and eliminating waste. “Despite the decline in earnings, 2011 was a momentous year at Southwest Airlines.  We celebrated our 40 th year of providing legendary low fare, high quality, domestic air travel and delivered our 39 th consecutive year of profits to our Shareholders.  We launched service to Greenville-Spartanburg and Charleston, South Carolina and Newark, New Jersey within two weeks time, increasing Southwest’s domestic footprint to 72 cities.  In March, we launched our All-New Rapid Rewards® program.  The completely revamped, industry-leading frequent flyer program continues to grow at a strong pace.  Results, thus far, are well beyond our expectations.  “On May 2 nd , we acquired AirTran Airways, increasing our fleet by 140 aircraft, and extending our combined network into key markets we didn’t previously serve, such as Atlanta and Washington, D.C., via Ronald Reagan National Airport, as well as many smaller domestic cities and leisure markets in the Caribbean and Mexico.   We also expanded our presence at New York LaGuardia, Boston, Milwaukee, and Baltimore/Washington.  “While it will take several years to fully integrate AirTran into Southwest Airlines, I am very proud of the tremendous progress in only eight months’ time.  We are on track to obtain our single operating certificate this quarter. The Southwest Airlines Pilots’ Association and the Air Line Pilots Association took the lead on negotiating a seniority list integration (SLI) agreement that was ratified by both Pilot groups.  The Flight Attendants’, Mechanics’, and Flight Instructors’ unions have tentative SLI agreements, currently out for vote by the memberships.  As a result of the superb efforts of our People, we are already producing over $200 million of net annualized pre-tax synergies, which is 50 percent of our $400 million target by 2013 (excluding acquisition and integration expenses).  For 2011, we realized $80 million in net pre-tax synergies, and the acquisition was modestly accretive to our 2011 results, excluding special items, as planned.” The Company incurred $134 million in expenses (before taxes) associated with the acquisition and integration of AirTran during 2011, including $37 million in fourth quarter 2011.  The Company expects total acquisition and integration expenses will be approximately $500 million.  Kelly continued, “In December, we unveiled our fleet modernization plans, including the launch of the B737-MAX aircraft beginning in 2017, representing our fourth time as Boeing’s launch customer.  Our agreements with Boeing afford us significant flexibility to replace our older, less efficient aircraft with new Boeing 737-700/800 aircraft and the B737-MAX aircraft.  During 2012, we will take delivery of 33 737-800s, with the first delivery of the -800 model to Southwest scheduled for March.  Earlier this week, we announced the final prong of our fleet modernization plans.  Leveraging the new Boeing Sky Interior from the -800 model, we decided to retrofit our -700 fleet with an updated cabin interior.  Evolve: The New Southwest Experience is a -700 cabin refresh intended to enhance Customer comfort, personal space, and the overall travel experience.  It allows for the added benefit of six additional seats, along with more climate-friendly and cost-effective materials.  Our fleet modernization plans have been designed to drive significant value in the near and long term.   “Operationally, we finished the year strong with our highest December ontime performance in 15 years.  Our People continue to deliver outstanding levels of Customer Service, as recognized by Southwest Airlines being named the 2011 Customer Service Champion by J.D. Powers, and the Customer Satisfaction Leader in Consumer Reports’ list of airline ratings. “I commend each of our 45,000+ Warriors for their hard work and notable accomplishments.  We accomplished everything we set out to do in 2011, with soaring fuel costs the only disappointment.  As we prepare for our next 40 years, our target is fixed on a 15 percent pretax return on invested capital.  Capital commitments for 2012 are approximately $1.3 billion, our 2012 capacity is estimated to be flat with 2011, and we currently plan to end 2012 with 691 aircraft in our fleet.  Future capital spending will be carefully monitored with a focus on generating free cash flow.  We are committed to providing exceptional Customer Service at everyday low fares; focused on investing in the Customer Experience while preserving our low cost position; and engaged in our strategic initiatives to drive Shareholder value.”   Financial Results and Outlook AirTran Airways, Inc. became a wholly-owned subsidiary of the Company on May 2, 2011. Results discussed in this release and provided in the accompanying unaudited Condensed Consolidated Financial Statements and Comparative Consolidated Operating Statistics include the results of operations and cash flows for AirTran from May 2 through December 31, 2011, including the impact of purchase accounting.  Periods presented prior to the acquisition date do not include AirTran’s results.  However, the Company believes the analysis of specified financial results on a “combined basis” provides more meaningful year-over-year comparability.  Financial information presented on a “combined basis” is the sum of the historical financial results of the Company and AirTran for periods prior to the acquisition date, but includes the impact of purchase accounting only as of May 2, 2011.  Supplemental financial information presented on a “combined basis” and the accompanying reconciliations have been included in this release. The Company’s total operating revenues in fourth quarter 2011 increased 31.9 percent to $4.1 billion, compared to $3.1 billion in fourth quarter 2010, and increased 9.3 percent compared to $3.8 billion for combined fourth quarter 2010 total operating revenues.  Operating unit revenues increased 7.0 percent from fourth quarter 2010, on a combined basis.  Total fourth quarter 2011 operating expenses were $4.0 billion, compared to $2.9 billion in fourth quarter 2010, and compared to $3.5 billion for combined fourth quarter 2010 total operating expenses.  Excluding special items in both periods, fourth quarter 2011 unit costs increased 10.8 percent from fourth quarter 2010 combined unit costs, largely due to a 33.7 percent year-over-year increase in economic fuel costs per gallon.   Fourth quarter 2011 economic fuel costs of $3.29 per gallon included $0.12 per gallon in unfavorable cash settlements for fuel derivative contracts; however, fuel derivative contract premiums are down significantly year-over-year, as described below in other income.  Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.  Excluding fuel and special items in both periods, fourth quarter 2011 unit costs increased 0.5 percent from fourth quarter 2010’s combined 7.72 cents.  Based on current cost trends, the Company expects another year-over-year increase in its first quarter 2012 unit costs, compared to first quarter 2011’s combined unit costs of 7.83 cents, excluding fuel and special items in both periods. Operating income for fourth quarter 2011 was $147 million, compared to $216 million in fourth quarter 2010.  Excluding special items in both periods, operating income was $167 million for fourth quarter 2011, compared to $263 million in fourth quarter 2010, and compared to $278 million for combined fourth quarter 2010 operating income. Other income for the fourth quarter was $108 million compared to $3 million of other expenses for fourth quarter 2010.  This $111 million swing primarily resulted from $153 million in gains recognized in fourth quarter 2011, compared to $31 million in gains recognized in fourth quarter 2010.  In both periods, these gains primarily resulted from unrealized gains/losses associated with a portion of the Company’s fuel hedging portfolio.  Excluding these special items, other losses were primarily attributable to the premium costs associated with the Company’s fuel derivative contracts.  Fourth quarter 2011 premium costs were $14 million, compared to $44 million in fourth quarter 2010, on a combined basis. First quarter 2012 premium costs are currently estimated to be approximately $6 million, compared to combined premium costs of $36 million in first quarter 2011.  Total operating revenues for the year ended December 31, 2011, increased 29.4 percent to $15.7 billion, while total operating expenses increased 34.6 percent to $15.0 billion, resulting in operating income of $693 million, compared to $988 million for the year ended 2010.  Excluding special items in both periods, operating income was $839 million for the year ended December 31, 2011, compared to $1.2 billion in 2010.  On a combined basis, total operating revenues for 2011 increased 12.7 percent to $16.6 billion, while total operating expenses increased 17.3 percent to $15.9 billion, resulting in combined operating income for 2011 of $662 million, compared to $1.1 billion for 2010.  Excluding special items in both periods, combined operating income for 2011 was $834 million, compared to $1.3 billion for 2010. The Company’s return on invested capital (before taxes and excluding special items) was approximately seven percent for the year ended December 31, 2011, including AirTran’s results beginning May 2, 2011.  Additional information regarding pretax return on invested capital is included in the accompanying reconciliation tables.      Liquidity Net cash provided by operations for 2011 was $1.4 billion, and capital expenditures were $968 million.  As a result, the Company generated over $400 million in free cash flow* in 2011. On August 5, 2011, the Company’s Board of Directors authorized a share repurchase program to acquire up to $500 million of the Company’s common stock. During 2011, the Company purchased approximately 27.5 million shares of common stock for approximately $225 million.  The Company repaid $638 million in debt during 2011, and is scheduled to repay approximately $560 million debt in 2012, including $430 million in first quarter 2012.  After this planned first quarter debt payment, the Company will have reduced debt by approximately $1 billion since acquiring AirTran in May 2011.  As of January 18 th , the Company had approximately $3.5 billion in cash and short-term investments.  In addition, the Company also had a fully available unsecured revolving credit line of $800 million.   2011 Awards and Recognitions Named the fourth most admired Company in the world in FORTUNE magazine’s 2011 survey of corporate reputations Voted best low-cost carrier in North America by Business Traveler Magazine subscribers Named the 2011 Customer Service Champion by J.D. Powers based on customer feedback regarding service excellence Named Brand of the Year in Harris Poll EquiTrend’s airline category based on equity, customer connection, commitment, brand behavior, brand advocacy, and trust Ranked third in the Top 10 Business Thought Leaders by TLG Communications Received first place for Best Overall Customer Experience in the Keynote Competitive Research Industry Study examining U.S. Air Travel Websites Named Airline of the Year by Express Delivery and Logistics Association, the tenth consecutive year for Southwest Airlines Cargo to receive the recognition; also recognized for Excellence in Web Site and Technology for the second year in a row Southwest Cargo was also named Domestic Carrier of the Year for 2011 by the Airforwarders Association for the second consecutive year and was recently recognized for excellence in Air Cargo World’s annual Air Cargo Excellence (ACE) Survey Recognized by PR News with several awards including the 2011 PR News Corporate Responsibility Awards for Diversity Communications, the Corporate Social Responsibility Award for Best Report, and honorable mention for the Social Corporate Responsibility Award for Corporate/Nonprofit Partnership Named the Greenest Airline by ClimateCounts.org Voted the Customer Satisfaction Leader in Consumer Reports’ list of airline ratings receiving the highest rankings in check-in ease, cabin crew service, cabin cleanliness, baggage handling, and seating comfort Ranked sixth in the  2011 Customer Service Hall of Fame by MSN Money, the only airline to make the top ten Named one of the 100 Top Military Friendly Employers by GI Jobs magazine Recognized for Best Practices in Supplier Diversity by the Dallas Fort Worth Minority Business Council Named the Stevie Award Winner for the Company of the Year-Transportation by The International Business Awards for outstanding performance and Customer Service Received the 2011 Quest for Quality Award for Excellence in Air Cargo from Logistics Management Magazine; ranked first in ontime performance, value, and Customer Service Recognized as one of the top ten safest airlines in the Holistic Safety Rating 2011 by the Air Transport Rating Agency Recognized as one of the 50 best places to work by the Glassdoors.com Employees’ Choice Awards     Southwest will discuss its fourth quarter and full year 2011 results on a conference call at 12:30 p.m. Eastern Time today.  A live broadcast of the conference call will also be available at southwest.com/investor_relations. *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 targets, outlook, and projected results of operations; (ii) the Company’s plans and expectations relating to its acquisition of AirTran, including without limitation anticipated integration timeframes and expected costs, synergies, and other financial results associated with the acquisition; (iii) the Company’s fleet modernization plans and related expectations; and (iv) the Company’s capacity 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) changes in fuel prices, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions; (ii) the Company’s ability to successfully integrate AirTran and realize the expected synergies and other benefits from the acquisition; (iii) the impact of the economy on demand for air travel and the impact of fuel prices, economic conditions, and actions of competitors on the Company’s business decisions, plans, and strategies; (iv) the Company’s dependence on third parties with respect to certain of its initiatives; (v) the Company’s ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; and (vi) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. SOUTHWEST AIRLINES CO.       CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (1)       (in millions, except per share amounts)       (unaudited)                                                       Three months ended       Year ended             December 31,       December 31,             2011   2010   Percent Change   2011     2010   Percent Change                                             OPERATING REVENUES:                                       Passenger $ 3,860   $ 2,945    31.1   $ 14,735  (2)   $ 11,489    28.3     Freight    36      32    12.5      139        125    11.2     Other    212      137    54.7      784  (2)      490    60.0       Total operating revenues    4,108      3,114    31.9      15,658        12,104    29.4                                             OPERATING EXPENSES:                                       Salaries, wages, and benefits    1,145      955    19.9      4,371        3,704    18.0     Fuel and oil    1,494      940    58.9      5,644        3,620    55.9     Maintenance materials and repairs    239      195    22.6      955        751    27.2     Aircraft rentals    93      45    106.7      308        180    71.1     Landing fees and other rentals    254      201    26.4      959        807    18.8     Depreciation and amortization    192      160    20.0      715        628    13.9     Acquisition and integration    37      7   n.a.      134        8   n.a.     Other operating expenses    507      395    28.4      1,879        1,418    32.5       Total operating expenses    3,961      2,898    36.7      14,965        11,116    34.6                                             OPERATING INCOME    147      216    (31.9)      693        988    (29.9)                                             OTHER EXPENSES (INCOME):                                       Interest expense    51      41    24.4      194        167    16.2     Capitalized interest    (4)      (4)    -       (12)        (18)    (33.3)     Interest income    (2)      (3)    (33.3)      (10)        (12)    (16.7)     Other (gains) losses, net    (153)      (31)   n.a.      198        106   n.a       Total other expenses (income)    (108)      3   n.a.      370        243    52.3                                             INCOME BEFORE INCOME TAXES    255      213    19.7      323        745    (56.6)   PROVISION FOR INCOME TAXES    103      82    25.6      145        286    (49.3)                                             NET INCOME $ 152   $ 131    16.0   $ 178     $ 459    (61.2)                                                                                       NET INCOME PER SHARE                                       Basic $ 0.20   $ 0.18       $ 0.23     $ 0.62         Diluted $ 0.20   $ 0.18       $ 0.23     $ 0.61                                                 WEIGHTED AVERAGE SHARES OUTSTANDING                                       Basic    777      747          774        746         Diluted    783      750          775        747                                                                                           (1) Includes May through December 2011 financial results for AirTran, and the impact of purchase accounting as of May 2, 2011. See Supplemental Combined Statement I for selected financial information on a combined basis, including AirTran for periods prior to the acquisition date.                                             (2) The Company made a fourth quarter 2011 correction to change the allocation of revenues between Passenger and Other from its sale of frequent flyer points associated with its co-branded Chase Visa card.  As part of this correction, the Company has reclassified $46 million in revenues for the period from January 2011 through September 2011 from Other revenue to Passenger revenue to conform to the current presentation.  Prior periods were immaterial.           SOUTHWEST AIRLINES CO. RECONCILIATION OF REPORTED AMOUNTS TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions, except per share amounts) (unaudited)   Three months ended       Year ended       December 31,       December 31,         2011     2010   Percent Change     2011     2010   Percent Change                                 Fuel and oil expense, unhedged $ 1,455   $ 886       $ 5,580   $ 3,296     Add: Fuel hedge losses included in Fuel and oil expense    39      54          64      324     Fuel and oil expense, as reported $ 1,494   $ 940       $ 5,644   $ 3,620     Add (Deduct): Net impact from fuel contracts (2)    17      (40)          -       (172)     Fuel and oil expense, economic $ 1,511   $ 900    67.9   $ 5,644   $ 3,448    63.7                                 Total operating expenses, as reported $ 3,961   $ 2,898       $ 14,965   $ 11,116     Add (Deduct): Net impact from fuel contracts (2)    17      (40)          -       (172)     Total operating expenses, economic $ 3,978   $ 2,858       $ 14,965   $ 10,944     (Deduct): Charge for Asset impairment, net (3)    -       -           (14)      -      (Deduct): Charge for Acquisition and integration costs, net (4)    (37)      (7)          (132)      (7)     Total operating expenses, non-GAAP $ 3,941   $ 2,851    38.2   $ 14,819   $ 10,937    35.5                                 Operating income, as reported $ 147   $ 216       $ 693   $ 988     Add (Deduct): Net impact from fuel contracts (2)    (17)      40          -       172     Operating income, economic $ 130   $ 256       $ 693   $ 1,160     Add: Charge for Asset impairment, net (3)    -       -           14      -      Add: Charge for Acquisition and integration costs, net (4)    37      7          132      7     Operating income, non-GAAP $ 167   $ 263    (36.5)   $ 839   $ 1,167    (28.1)                                 Other (gains) losses, net, as reported $ (153)   $ (31)       $ 198   $ 106     Add (Deduct): Net impact from fuel contracts (2)    168      71          (89)      33     Other losses, net, non-GAAP $ 15   $ 40    (62.5)   $ 109   $ 139    (21.6)                                 Income before income taxes, as reported $ 255   $ 213       $ 323   $ 745     Add (Deduct): Net impact from fuel contracts (2)    (185)      (31)          89      139       $ 70   $ 182       $ 412   $ 884     Add: Charge for Asset impairment, net (3)    -       -           14      -      Add: Charge for Acquisition and integration costs, net (4)    37      7          132      7     Income before income taxes, non-GAAP $ 107   $ 189    (43.4)   $ 558   $ 891    (37.4)                                 Net income as reported $ 152   $ 131       $ 178   $ 459     Add (Deduct): Net impact from fuel contracts (2)    (185)      (31)          89      139     Income tax impact of fuel contracts    78      12          (31)      (52)       $ 45   $ 112       $ 236   $ 546     Add: Charge for Asset impairment, net (5)    -       -           9      -      Add: Charge for Acquisition and integration costs, net (5)    21      3          85     4     Net income, non-GAAP $ 66   $ 115    (42.6)   $ 330   $ 550    (40.0)                                 Net income per share, diluted, as reported $ 0.20   $ 0.18       $ 0.23   $ 0.61     Add (Deduct): Net impact from fuel contracts    (0.10)      (0.03)          0.07      0.12       $ 0.10   $ 0.15       $ 0.30   $ 0.73     Add: Impact of special items, net (5)    (0.01)      -           0.13      0.01     Net income per share, diluted, non-GAAP $ 0.09   $ 0.15    (40.0)   $ 0.43   $ 0.74    (41.9)                                 (1) Includes May through December 2011 financial results for AirTran, and the impact of purchase accounting as of May 2, 2011. See Supplemental Combined Statement II for a reconciliation of selected combined amounts to non-GAAP items, including AirTran for periods prior to the acquisition date. (2) See Reconciliation of Impact from Fuel Contracts. (3) Net of profitsharing impact. (4) Amounts net of profitsharing impact on charges incurred through March 31, 2011. The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013. The profitsharing impact will be realized in 2014 and beyond. (5) Amounts net of tax and profitsharing impact (see footnote (4) above).   SOUTHWEST AIRLINES CO. RECONCILIATION OF IMPACT FROM FUEL CONTRACTS  (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited)                       Three months ended   Year ended     December 31,   December 31,     2011   2010   2011   2010                   Fuel and Oil Expense                 Reclassification between Fuel and Oil and Other (gains)                 losses, net, associated with current period settled contracts $ 41 $ (14) $ 35 $ (1) Contracts settling in the current period, but for which gains                 and/or (losses) have been recognized in a prior period *    (24)    (26)    (35)    (171) Impact from fuel contracts to Fuel and oil expense    17    (40)    -     (172)                                     Operating Income                 Reclassification between Fuel and Oil and Other (gains)                 losses, net, associated with current period settled contracts $ (41) $ 14 $ (35) $ 1 Contracts settling in the current period, but for which gains                 and/or (losses) have been recognized in a prior period *    24    26    35    171 Impact from fuel contracts to Operating Income    (17)    40    -     172                                     Other (gains) losses, net                 Mark-to-market impact from fuel contracts                 settling in future periods $ 127 $ 24 $ (21) $ 21 Ineffectiveness from fuel hedges settling in future periods    82    33    (33)    11 Reclassification between Fuel and oil and Other (gains)                 losses, net, associated with current period settled contracts    (41)    14    (35)    1 Impact from fuel contracts to Other (gains) losses, net    168    71    (89)    33                                     Net Income                 Mark-to-market impact from fuel contracts                 settling in future periods $ (127) $ (24) $ 21 $ (21) Ineffectiveness from fuel hedges settling in future periods    (82)    (33)    33    (11) Other net impact of fuel contracts settling in the                 current or a prior period (excluding reclassifications)    24    26    35    171 Impact from fuel contracts to Net Income **    (185)    (31)    89    139                   (1) Includes May through December 2011 financial results for AirTran. * As a result of prior hedge ineffectiveness and/or contracts marked-to-market through the income statement. ** Excludes income tax impact of unrealized items.   SOUTHWEST AIRLINES CO. COMPARATIVE CONSOLIDATED OPERATING STATISTICS (1) (unaudited)                                                   Three months ended   Year ended     December 31,   December 31,     2011   2010   Change   2011   2010   Change Revenue passengers carried     27,536,128       22,451,968     22.6 %     103,973,759       88,191,322     17.9 % Enplaned passengers     33,510,920       27,163,960     23.4 %     127,551,012       106,227,521     20.1 % Revenue passenger miles (RPMs) (000s)     25,180,506       20,005,943     25.9 %     97,582,530       78,046,967     25.0 % Available seat miles (ASMs) (000s)     31,297,562       24,788,095     26.3 %     120,578,736       98,437,092     22.5 % Load factor     80.5 %    80.7 %   (0.2) pts 80.9 %    79.3 %   1.6 pts Average length of passenger haul (miles)     914       891     2.6 %     939       885     6.1 % Average aircraft stage length (miles)     679       653     4.0 %     679       648     4.8 % Trips flown     343,756       278,137     23.6 %     1,317,977       1,114,451     18.3 % Average passenger fare   $ 140.18     $ 131.17     6.9 %   $ 141.72     $ 130.27     8.8 % Passenger revenue yield per RPM (cents)     15.33       14.72     4.1 %     15.10       14.72     2.6 % RASM (cents)     13.13       12.56     4.5 %     12.99       12.30     5.6 % PRASM (cents)     12.33       11.88     3.8 %     12.22       11.67     4.7 % CASM (cents)     12.66       11.69     8.3 %     12.41       11.29     9.9 % CASM, excluding fuel (cents)     7.89       7.90     (0.1) %     7.73       7.61     1.6 % CASM, excluding special items (cents)     12.59       11.51     9.4 %     12.29       11.11     10.6 % CASM, excluding fuel and special items (cents)     7.76        7.88     (1.5) %      7.61        7.61     - % Fuel costs per gallon, including fuel tax (unhedged)   $ 3.17     $ 2.44     29.9 %   $ 3.16     $ 2.29     38.0 % Fuel costs per gallon, including fuel tax   $ 3.25     $ 2.59     25.5 %   $ 3.19     $ 2.51     27.1 % Fuel costs per gallon, including fuel tax (economic)   $ 3.29     $ 2.48     32.7 %   $ 3.19     $ 2.39     33.5 % Fuel consumed, in gallons (millions)     458       361     26.9 %     1,764       1,437     22.8 % Active fulltime equivalent Employees     45,392       34,901     30.1 %     45,392       34,901     30.1 % Aircraft in service at period-end     698       548     27.4 %     698       548     27.4 %                                               PRASM (Passenger unit revenue) - Passenger revenue yield per ASM RASM (unit revenue) - Operating revenue yield per ASM CASM (unit costs) - Operating expenses per ASM                                               (1) Includes May through December 2011 operating statistics for AirTran, and the impact of purchase accounting as of May 2, 2011. See Supplemental Combined Statement V for consolidated operating statistics on a combined basis, including AirTran for periods prior to the acquisition date.   SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING FINANCIAL INFORMATION DETAIL OF AIRLINE FOURTH QUARTER 2011 RESULTS AND PURCHASE ACCOUNTING IMPACT (in millions) (unaudited)                                     Three months ended December 31, 2011                       Purchase               Southwest (1)     AirTran (2)       Accounting (3)     Consolidated OPERATING REVENUES:                           Passenger $ 3,239   $ 619   $ 2   $ 3,860   Freight    36      -         -       36   Other    126      86      -       212     Total operating revenues    3,401      705        2      4,108                               OPERATING EXPENSES:                           Salaries, wages, and benefits    1,003      142        -       1,145   Fuel and oil    1,213      281      -       1,494   Maintenance materials and repairs    175      64        -       239   Aircraft rentals    44      59        (10)      93   Landing fees and other rentals    210      44        -       254   Depreciation and amortization    167      15        10      192   Acquisition and integration    35      2        -       37   Other operating expenses    420      87      -       507     Total operating expenses    3,267      694        -       3,961                               OPERATING INCOME $ 134   $ 11     $ 2   $ 147                           (1) Results presented for Southwest exclude AirTran results and the impact of purchase accounting. (2) Results presented for AirTran exclude Southwest results and the impact of purchase accounting. (3) Represents the impact of purchase accounting.   SOUTHWEST AIRLINES CO. RECONCILIATION OF  SELECTED CONSOLIDATING FINANCIAL INFORMATION TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited)                 Three months ended     December 31, 2011       Southwest     AirTran                 Fuel and oil expense, standalone unhedged $ 1,169   $ 286   Add/(Deduct): Fuel hedge (gains) losses included in Fuel and oil expense    44      (5)   Fuel and oil expense, standalone (2) $ 1,213   $ 281   Deduct: Net impact from fuel contracts (3)    17      -    Fuel and oil expense, standalone economic $ 1,230   $ 281                 Total operating expenses, standalone (2) $ 3,267   $ 694   Deduct: Net impact from fuel contracts (3)    17      -    Total operating expenses, standalone economic $ 3,284   $ 694   Deduct: Charge for Acquisition and integration costs (4)    (35)      (2)   Total operating expenses, standalone non-GAAP $ 3,249   $ 692                 Operating income, standalone (2) $ 136   $ 11   Add: Net impact from fuel contracts (3)    (17)      -    Operating income, standalone economic $ 119   $ 11   Add: Charge for Acquisition and integration costs (4)    35      2   Operating income, standalone non-GAAP $ 154   $ 13                               (1) Selected amounts presented in this schedule are standalone non-GAAP financial results for each of Southwest and AirTran.  These standalone results exclude the results of the other airline, and the impact of purchase accounting. (2) See Selected Consolidating Financial Information - Detail of Airline Fourth Quarter 2011 Results and Purchase Accounting Impact for the detail of standalone airline results and the purchase accounting impact. (3) See Reconciliation of Impact from Fuel Contracts.             (4) No profitsharing impact. The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013.  The profitsharing impact will be realized in 2014 and beyond.                 SOUTHWEST AIRLINES CO.           RETURN ON INVESTED CAPITAL (1)           (in millions)             (unaudited)                         Year Ended   Year Ended   December 31, 2011   December 31, 2010 Operating Income, as reported $ 693   $ 988 Add: Net impact from fuel contracts   -     172 Add: Acquisition and integration costs, net (2)   146      7 Operating Income, non-GAAP $ 839   $ 1,167 Net adjustment for aircraft leases (3)   131     84 Adjustment for fuel hedge accounting   (107)     (134) Adjusted Operating Income, non-GAAP $ 863   $ 1,117                         Average Invested Capital (4) $ 12,372   $ 10,431 Equity adjustment for fuel hedge accounting   203     434 Adjusted Average Invested Capital $ 12,575   $ 10,865             ROIC, pretax   7%     10%             (1) Calculation includes the impact of the AirTran acquisition as of May 2, 2011. (2) Net of profitsharing impact on charges incurred through March 31, 2011.  The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013.  The profitsharing impact will be realized in 2014 and beyond. (3) Net adjustment related to presumption that all aircraft in fleet are owned. (4) Average invested capital represents a five quarter average of debt, net present value of aircraft leases, and equity.                       DECEMBER 31,           2011   2010   ASSETS               Current assets:                 Cash and cash equivalents   $ 829   $ 1,261     Short-term investments      2,315      2,277     Accounts and other receivables      299      195     Inventories of parts and supplies, at cost      401      243     Deferred income taxes      263      214     Prepaid expenses and other current assets      238      89       Total current assets      4,345      4,279                       Property and equipment, at cost:                 Flight equipment      15,542      13,991     Ground property and equipment      2,423      2,122     Deposits on flight equipment purchase contracts      456      230          18,421      16,343     Less allowance for depreciation and amortization      6,294      5,765              12,127      10,578   Goodwill      970      -    Other assets      626      606           $ 18,068   $ 15,463                       LIABILITIES AND STOCKHOLDERS' EQUITY               Current liabilities:                 Accounts payable   $ 1,057   $ 739     Accrued liabilities      996      863     Air traffic liability      1,836      1,198     Current maturities of long-term debt      644      505       Total current liabilities      4,533      3,305                       Long-term debt less current maturities      3,107      2,875   Deferred income taxes      2,566      2,493   Deferred gains from sale and leaseback of aircraft      75      88   Other noncurrent liabilities      910      465   Stockholders' equity:                 Common stock      808      808     Capital in excess of par value      1,222      1,183     Retained earnings      5,395      5,399     Accumulated other comprehensive loss      (224)      (262)     Treasury stock, at cost      (324)      (891)       Total stockholders' equity      6,877      6,237           $ 18,068   $ 15,463     SOUTHWEST AIRLINES CO.             CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (1)             (in millions)               (unaudited)                                                   Three months ended   Year ended         December 31,   December 31,         2011   2010   2011   2010                               CASH FLOWS FROM OPERATING ACTIVITIES:                         Net income $ 152   $ 131   $ 178   $ 459   Adjustments to reconcile net income to                           cash provided by (used in) operating activities:                           Depreciation and amortization    192      160      715      628     Unrealized (gain) loss on fuel derivative instruments    (185)      (31)      90      139     Deferred income taxes    90      38      123      133     Amortization of deferred gains on sale and                             leaseback of aircraft    (3)      (3)      (13)      (14)     Changes in certain assets and liabilities, net of acquisition:                             Accounts and other receivables    70      39      (26)      (26)       Other current assets    (16)      (2)      (196)      (8)       Accounts payable and accrued liabilities    (13)      3      253      193       Air traffic liability    (222)      (226)      262      153     Cash collateral received from (provided to)                             derivative counterparties    234      115      (195)      265     Other, net    101      45      194      (361)   Net cash provided by operating activities    400      269      1,385      1,561                               CASH FLOWS FROM INVESTING ACTIVITIES:                           Payment to acquire AirTran, net of AirTran cash on hand    -       -       (35)      -      Payments for purchase of property and equipment, net    (420)      (94)      (968)      (493)     Purchases of short-term investments    (574)      (1,293)      (5,362)      (5,624)     Proceeds from sales of short-term investments    900      1,367      5,314      4,852   Net cash used in investing activities    (94)      (20)      (1,051)      (1,265)                               CASH FLOWS FROM FINANCING ACTIVITIES:                           Proceeds from Employee stock plans    4      10      39      55     Proceeds from termination of interest rate                             derivative instrument    -       -       76      -      Payments of long-term debt and capital lease obligations    (447)      (31)      (557)      (155)     Payments of convertible debt    -       -       (81)      -      Payments of cash dividends    -       -       (14)      (44)     Repurchase of common stock    (50)      -       (225)      (13)     Other, net    -       2      (4)      8   Net cash used in financing activities    (493)      (19)      (766)      (149)                               NET CHANGE IN CASH AND CASH EQUIVALENTS    (187)      230      (432)      147                               CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    1,016      1,031      1,261      1,114                               CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 829   $ 1,261   $ 829   $ 1,261                                                             SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:   Fair value of equity consideration given to acquire AirTran $ -    $ -    $ 523   $ -    Fair value of common stock issued for conversion of debt $ -    $ -    $ 78   $ -                                (1) Includes the impact of the AirTran acquisition as of May 2, 2011.                                 SOUTHWEST AIRLINES CO. FUEL DERIVATIVE CONTRACTS AS OF JANUARY 13, 2012                                                       Percent of estimated fuel consumption           covered by fuel derivative contracts         Average WTI Crude Oil               price per barrel First Half 2012   Second Half 2012                         $80 to $100 (1)   10-20% range         $100 to $125   approx. 50%         $125 to $150   approx. 20%         Above $150   less than 5%                                                           Estimated difference in economic jet fuel price per gallon,       above/(below) unhedged market prices, including taxes     Average WTI Crude Oil               price per barrel 1Q 2012   2Q 2012   Second Half 2012                     $75 $0.12   $0.12   $0.15     $90 $0.12   $0.09   $0.11     $99 (2) $0.12   $0.06   $0.06     $115 $0.12   $0.06   ($0.11)     $130 $0.11   $0.06   ($0.28)                                       Percent of estimated fuel consumption           covered by fuel derivative contracts at         Period varying WTI crude-equivalent price levels                         2013 over 50%         2014 over 40%         2015 over 10%                                                     (1) For first half 2012, the Company's current estimated fuel consumption covered by fuel derivative contracts is minimal, with various fuel derivative contracts at WTI crude-equivalent intervals between $80 and $150 per barrel.                     (2) Based on the first quarter 2012 average WTI forward curve and market prices as of January 13, 2012, and current estimated fuel consumption covered by fuel derivative contracts, first quarter 2012 economic fuel price per gallon, including taxes, is estimated to be approximately $3.35 per gallon, or $.12 above market prices.                   SOUTHWEST AIRLINES CO.                 737 FUTURE DELIVERY SCHEDULE                 AS OF JANUARY 18, 2012                                                                                   The Boeing Company   The Boeing Company     737 NG       737 MAX       -700 Firm Orders     -800 Firm Orders   Options     Additional -800s   Firm Orders     Options   Total                                 2012        28        5              33 2013        41                      41 2014 35      4    15                  54 2015 36           12                  48 2016 31           12                  43 2017 15           25        4          44 2018 10           28        15          53 2019                     33          33 2020                     34          34 2021                     34     18    52 2022                     30     19    49 2023                          23    23 2024                          23    23 Through 2027                          67    67   127 (a)   73   92   5 (b) 150 (c)   150   597                                                                                                 (a) The Company has flexibility to substitute 737-800s in lieu of 737-700 firm orders           (b) New delivery leased aircraft           (c) The Company has flexibility to accept MAX 7 or MAX 8 deliveries                                             SUPPLEMENTAL COMBINED STATEMENT I SOUTHWEST AIRLINES CO. SELECTED COMBINED FINANCIAL INFORMATION (1) (in millions) (unaudited)                                               Three months ended       Year ended           December 31,       December 31,                       Percent                   Percent       2011   2010   Change   2011     2010   Change                                         OPERATING REVENUES:                                     Passenger $ 3,860   $ 3,492    10.5   $ 15,547 (2)   $ 13,729    13.2   Freight    36      32    12.5      139        125    11.2   Other    212      236    (10.2)      910 (2)      869    4.7     Total operating revenues    4,108      3,760    9.3      16,596        14,723    12.7                                         OPERATING EXPENSES:                                     Salaries, wages, and benefits    1,145      1,091    4.9      4,564        4,232    7.8   Fuel and oil    1,494      1,156    29.2      6,005        4,447    35.0   Maintenance materials and repairs    239      251    (4.8)      1,043        981    6.3   Aircraft rentals    93      106    (12.3)      389        422    (7.8)   Landing fees and other rentals    254      240    5.8      1,013        970    4.4   Depreciation and amortization    192      175    9.7      735        687    7.0   Acquisition and integration    37      16    131.3      160        17   n.a.   Other operating expenses    507      501    1.2      2,025        1,827    10.8     Total operating expenses    3,961      3,536    12.0      15,934        13,583    17.3                                         OPERATING INCOME $ 147   $ 224    (34.4)   $ 662     $ 1,140    (41.9)                                     (1) Selected financial information for the three months ended December 31, 2011, is presented on a consolidated basis.  All other selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. AirTran's historical financial information included in the combined presentation has been conformed to Southwest's financial statement classification where appropriate.  See Note Regarding Use of Non-GAAP Financial Measures. (2) The Company made a fourth quarter 2011 correction to change the allocation of revenues between Passenger and Other from its sale of frequent flyer points associated with its co-branded Chase Visa card.  As part of this correction, the Company has reclassified $46 million in revenues for the period from January 2011 through September 2011 from Other revenue to Passenger revenue to conform to the current presentation.  Prior periods were immaterial.   SUPPLEMENTAL COMBINED STATEMENT II SOUTHWEST AIRLINES CO. RECONCILIATION OF SELECTED COMBINED AMOUNTS FROM SUPPLEMENTAL COMBINED STATEMENT I TO NON-GAAP ITEMS (1) (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited)                                   Three months ended       Year ended       December 31,       December 31,                   Percent               Percent     2011     2010   Change     2011     2010   Change                                 Fuel and oil expense, combined unhedged $ 1,455   $ 1,109       $ 5,959   $ 4,146     Add: Fuel hedge losses included in Fuel and oil expense   39     47         46     301     Fuel and oil expense, as presented on Supplemental Combined Statement I $ 1,494   $ 1,156       $ 6,005   $ 4,447     Add (Deduct): Net impact from fuel contracts    17      (40)          -       (172)     Fuel and oil expense, combined economic $ 1,511   $ 1,116    35.4   $ 6,005   $ 4,275    40.5                                 Total operating expenses, as presented on Supplemental Combined Statement I $ 3,961   $ 3,536       $ 15,934   $ 13,583     Add (Deduct): Net impact from fuel contracts    17      (40)          -       (172)     Total operating expenses, combined economic $ 3,978   $ 3,496       $ 15,934   $ 13,411     Deduct: Charge for Asset impairment, net (2)    -       -           (14)      -      Deduct: Charge for Acquisition and integration costs, net (3)    (37)      (14)          (158)      (16)     Total operating expenses, combined non-GAAP $ 3,941   $ 3,482    13.2   $ 15,762   $ 13,395    17.7                                 Operating income, as presented on Supplemental Combined Statement I $ 147   $ 224       $ 662   $ 1,140     Add (Deduct): Net impact from fuel contracts    (17)      40          -       172     Operating income, combined economic $ 130   $ 264       $ 662   $ 1,312     Add: Charge for Asset impairment, net (2)    -       -           14      -      Add: Charge for Acquisition and integration costs, net (3)    37      14          158      16     Operating income, combined non-GAAP $ 167   $ 278    (39.9)   $ 834   $ 1,328    (37.2)                                                                                                 (1) Selected financial information for the three months ended December 31, 2011, is presented on a consolidated basis. All other selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. AirTran's historical financial information included in the combined presentation has been conformed to Southwest's financial statement classification where appropriate. (2) Net of profitsharing impact.                               (3) Amounts net of profitsharing impact on charges incurred through March 31, 2011.  The Company amended its profitsharing plan during second quarter 2011 to defer the profitsharing impact of integration costs incurred from April 1, 2011 through December 31, 2013. The profitsharing impact will be realized in 2014 and beyond.   SUPPLEMENTAL COMBINED STATEMENT III SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING COMBINED 2011 FINANCIAL INFORMATION (1) (in millions) (unaudited)                                 Year ended December 31, 2011           Southwest                       Airlines Co.                       (as reported)     AirTran (2)     Combined OPERATING REVENUES:                     Passenger   $ 14,735   $ 812   $ 15,547   Freight      139      -       139   Other      784      126      910     Total operating revenues      15,658      938      16,596                         OPERATING EXPENSES:                     Salaries, wages, and benefits      4,371      193      4,564   Fuel and oil      5,644      361      6,005   Maintenance materials and repairs      955      88      1,043   Aircraft rentals      308      81      389   Landing fees and other rentals      959      54      1,013   Depreciation and amortization      715      20      735   Acquisition and integration      134      26      160   Other operating expenses      1,879      146      2,025     Total operating expenses      14,965      969      15,934                         OPERATING INCOME (LOSS)   $ 693   $ (31)   $ 662                                             (1) Selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date. These combined results include the impact of purchase accounting as of May 2, 2011. See Note Regarding Use of Non-GAAP Financial Measures. (2) Results presented for AirTran, on a standalone basis, include periods prior to the acquisition date, conformed to Southwest's financial statement classification where appropriate.   SUPPLEMENTAL COMBINED STATEMENT IV SOUTHWEST AIRLINES CO. SELECTED CONSOLIDATING COMBINED 2010 FINANCIAL INFORMATION (1) (in millions) (unaudited)                                               Three months ended December 31, 2010   Year ended December 31, 2010         (as reported)           (as reported)               Southwest     AirTran           Southwest     AirTran               Airlines Co.     (as conformed)     Combined     Airlines Co.     (as conformed)     Combined OPERATING REVENUES:                                     Passenger $ 2,945   $ 547   $ 3,492   $ 11,489   $ 2,240   $ 13,729   Freight    32      -       32      125      -       125   Other    137      99      236      490      379      869     Total operating revenues    3,114      646      3,760      12,104      2,619      14,723                                         OPERATING EXPENSES:                                     Salaries, wages, and benefits    955      135      1,091      3,704      528      4,232   Fuel and oil    940      216      1,156      3,620      827      4,447   Maintenance materials and repairs    195      56      251      751      230      981   Aircraft rentals    45      61      106      180      242      422   Landing fees and other rentals    201      39      240      807      163      970   Depreciation and amortization    160      15      175      628      59      687   Acquisition and integration    7      9      16      8      9      17   Other operating expenses    395      105      501      1,418      409      1,827     Total operating expenses    2,898      636      3,536      11,116      2,467      13,583                                         OPERATING INCOME $ 216   $ 10   $ 224   $ 988   $ 152   $ 1,140                                     (1) Selected financial information presented in this schedule on a combined basis includes financial results for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date.  Results presented for Southwest and AirTran, on a standalone basis, represent previously reported results.  AirTran's historical financial information has been conformed to Southwest's financial statement classification where appropriate. See Note Regarding Use of Non-GAAP Financial Measures.                                                                                                                     SUPPLEMENTAL COMBINED STATEMENT V SOUTHWEST AIRLINES CO. COMBINED OPERATING STATISTICS (1) (unaudited)                                                     Three months ended   Year ended       December 31,   December 31,                                                 2011   2010   Change   2011   2010   Change Revenue passengers carried     27,536,128       27,330,796     0.8 %     110,151,572       107,605,957     2.4 % Enplaned passengers     33,510,920       33,276,264     0.7 %     135,274,464       130,921,515     3.3 % Revenue passenger miles (RPMs) (000s)     25,180,506       24,713,320     1.9 %     103,864,488       97,597,121     6.4 % Available seat miles (ASMs) (000s)     31,297,562       30,626,416     2.2 %     128,518,201       122,460,579     4.9 % Load factor     80.5 %     80.7 %   (0.2) pts   80.8 %     79.7 %   1.1 pts Average length of passenger haul (miles)     914       904     1.1 %     943       907     4.0 % Average aircraft stage length (miles)     679       670     1.3 %     684       668     2.4 % Trips flown     343,756       340,597     0.9 %     1,399,644       1,366,826     2.4 % Average passenger fare   $ 140.18     $ 127.76     9.7 %   $ 141.14     $ 127.59     10.6 % Passenger revenue yield per RPM (cents)     15.33       14.13     8.5 %     14.97       14.07     6.4 % RASM (cents)     13.13       12.27     7.0 %     12.91       12.02     7.4 % PRASM (cents)     12.33       11.40     8.2 %     12.10       11.21     7.9 % CASM (cents)     12.66       11.54     9.7 %     12.40       11.09     11.8 % CASM, excluding fuel (cents)     7.89       7.77     1.5 %     7.73       7.46     3.6 % CASM, excluding special items (cents)     12.59       11.36     10.8 %     12.26       10.94     12.1 % CASM, excluding fuel and special items (cents)      7.76        7.72     0.5 %      7.59        7.45     1.9 % Fuel costs per gallon, including fuel tax (unhedged)   $ 3.17     $ 2.45     29.4 %   $ 3.15     $ 2.28     38.2 % Fuel costs per gallon, including fuel tax   $ 3.25     $ 2.55     27.5 %   $ 3.18     $ 2.45     29.8 % Fuel costs per gallon, including fuel tax (economic)   $ 3.29     $ 2.46     33.7 %   $ 3.18     $ 2.36     34.7 % Fuel consumed, in gallons (millions)     458       451     1.4 %     1,887       1,810     4.3 %                                               PRASM (Passenger unit revenue) - Passenger revenue yield per ASM RASM (unit revenue) - Operating revenue yield per ASM CASM (unit costs) - Operating expenses per ASM                                               (1) Selected operating statistics for the three months ended December 31, 2011, are presented on a consolidated basis.  All other selected operating statistics presented in this schedule on a combined basis include operations for Southwest and AirTran for all periods presented, including AirTran for periods prior to the acquisition date.  These combined results include the impact of purchase accounting as of May 2, 2011.  AirTran's historical operating statistics included in the combined presentation have been conformed to Southwest's presentation where appropriate. NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). These GAAP financial statements include (i) unrealized non-cash adjustments and reclassifications, which can be significant, as a result of accounting requirements and elections made under accounting pronouncements relating to derivative instruments and hedging and (ii) other charges the Company believes are not indicative of its ongoing operational performance. As a result, the Company also provides financial information in this release that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company provides supplemental non-GAAP financial information, including results that it refers to as “economic,” which the Company’s management utilizes to evaluate its ongoing financial performance and the Company believes provides greater transparency to investors as supplemental information to its GAAP results. The Company’s economic financial results differ from GAAP results in that they only include the actual cash settlements from fuel hedge contracts--all reflected within Fuel and oil expense in the period of settlement. Thus, Fuel and oil expense on an economic basis reflects the Company’s actual net cash outlays for fuel during the applicable period, inclusive of settled fuel derivative contracts. Any net premium costs paid related to option contracts are reflected as a component of Other (gains) losses, net, for both GAAP and non-GAAP (including economic) purposes in the period of contract settlement. These economic results provide a better measure of the impact of the Company’s fuel hedges on its operating performance and liquidity since they exclude the unrealized, non-cash adjustments and reclassifications that are recorded in GAAP results in accordance with accounting guidance relating to derivative instruments, and they reflect all cash settlements related to fuel derivative contracts within Fuel and oil expense. This enables the Company’s management, as well as investors, to consistently assess the Company’s operating performance on a year-over-year or quarter-over-quarter basis after considering all efforts in place to manage fuel expense. However, because these measures are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, the aforementioned measures, as presented, may not be directly comparable to similarly titled measures presented by other companies. Further information on (i) the Company’s fuel hedging program, (ii) the requirements and accounting associated with accounting for derivative instruments, and (iii) the causes of hedge ineffectiveness and/or mark-to-market gains or losses from derivative instruments is included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as well as subsequent quarterly filings. In addition to its “economic” financial measures, as defined above, the Company has also provided other non-GAAP financial measures as a result of items that the Company believes are not indicative of its ongoing operations.  These include charges for the three months and year ended December 31, 2011 of $37 million and $134 million, respectively (before the impact of profitsharing and/or taxes) related to expenses associated with the Company’s acquisition and integration of AirTran.  These also include a 2011 charge of $17 million (before the impact of profitsharing and/or taxes) for an asset impairment related to the Company’s recent decision not to equip its Classic (737-300/500) aircraft with Required Navigation Performance (RNP) capabilities.  The Company believes that evaluation of its financial performance can be enhanced by a presentation of results that exclude the impact of these items in order to evaluate the results on a comparative basis with results in prior periods that do not include such items and as a basis for evaluating operating results in future periods.  As a result of the Company’s acquisition of AirTran, which closed on May 2, 2011, the Company has incurred and expects to continue to incur substantial charges associated with integration of the two companies.  While the Company cannot predict the exact timing or amounts of such charges, it does expect to treat the charges as special items in its future presentation of non-GAAP results. The Company has also provided other supplemental non-GAAP financial information on a “combined basis.”  This supplemental non-GAAP financial information on a “combined basis” includes specified combined financial results of the Company and AirTran for periods prior to May 2, 2011, as if the acquisition had occurred prior to the beginning of the applicable reporting period, but excludes any impact of purchase accounting prior to May 2, 2011.  AirTran’s historical financial information included in the combined presentation has been conformed to the Company’s financial statement classification where appropriate.  The Company believes that evaluation of its financial performance can be enhanced by a presentation of combined results in order to evaluate its prior, current or future period results on a more meaningful, consistent year-over-year basis. The Company has also provided free cash flow, which is a non-GAAP financial measure.  The Company believes free cash flow is a meaningful measure because it demonstrates the Company’s ability to service its debt, pay dividends and make investments to enhance shareholder value.  Although free cash flow is a commonly used as measure of liquidity, definitions of free cash flow may differ; therefore, the Company is providing an explanation of its calculation for free cash flow.   For the year ended December 31, 2011, the Company generated over $400 million in free cash flow, calculated as operating cash flows of $1.4 billion less capital expenditures of $968 million.   ... View more

DALLAS—Jan. 11, 2012—Southwest Airlines (NYSE: LUV) announced today plans to operate one new daily nonstop flight between Hartsfield-Jackson Atlanta International Airport and Los Angeles International Airport beginning June 10, 2012. This will be in addition to the three daily flights operated by AirTran, Southwest’s wholly-owned subsidiary. The carrier is pleased to add the long-haul route to its map—connecting two destinations popular for both leisure and business. Flights can be booked via www.southwest.com or www.airtran.com.   Southwest will begin service to the Atlanta market on Feb. 12, 2012, with 15 daily nonstop flights to five destinations: Baltimore/Washington, Chicago Midway, Denver, Houston Hobby, and Austin, Texas. Additionally, beginning March 10, 2012, the carrier will add daily, roundtrip flights between Atlanta and Las Vegas and Atlanta and Phoenix.   With the addition of Atlanta to Southwest’s network next month, Southwest Airlines adds Georgia, the 38th State, to a route map of service to a total of 73 US airports, including Atlanta.   As of today, AirTran serves 52 cities nonstop from Hartsfield-Jackson Atlanta International Airport, including near-international routes to Mexico and the Caribbean.   About Southwest Airlines Southwest Airlines continues to differentiate itself from other low-fare carriers—offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has recently acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,300 flights a day and has more than 37,000 Employees systemwide.   About AirTran Airways AirTran Airways is a wholly owned subsidiary of Southwest Airlines Co. and has been ranked the top airline in the Airline Quality Rating study twice in the past four years.  AirTran offers coast-to-coast service on North America's newest all-Boeing fleet. The airline's low-cost, high-quality product also includes assigned seating, and Business Class on every flight.   southwest.com ... View more

Southwest Airlines Co. (NYSE: LUV) today reported December 2011 combined traffic results for Southwest Airlines and AirTran.  AirTran became a wholly-owned subsidiary of Southwest Airlines Co. ("the Company") on May 2, 2011.  For purposes of comparability, the Company is providing combined traffic results for Southwest Airlines and AirTran for periods prior to the acquisition date.   See the accompanying tables for combined results. The Company flew 8.2 billion revenue passenger miles (RPMs) in December 2011, which was comparable to the combined RPMs flown in December 2010.  Available seat miles (ASMs) increased 1.8 percent to 10.5 billion from the December 2010 combined level of 10.3 billion.  The load factor for December 2011 was 78.4 percent, compared to the combined load factor of 80.1 percent in December 2010.  For December 2011, passenger revenue per ASM (PRASM) is estimated to have increased in the seven to eight percent range as compared to December 2010's combined PRASM. For the fourth quarter 2011, the Company flew 25.2 billion RPMs, compared to 24.7 billion combined RPMs flown for the same period in 2010, an increase of 1.9 percent.  Fourth quarter 2011 ASMs increased 2.2 percent to 31.3 billion, compared to the combined level of 30.6 billion for the same period in 2010.  The fourth quarter 2011 load factor was 80.5 percent, compared to the combined load factor of 80.7 percent for the same period in 2010.  For the year ended December 31, 2011, the Company flew 103.9 billion combined RPMs, compared to 97.6 billion combined RPMs flown for the same period in 2010, an increase of 6.4 percent.  The combined year-to-date ASMs increased 4.9 percent to 128.5 billion, compared to the combined level of 122.5 billion for the same period in 2010.  The combined year-to-date load factor was  80.8 percent, compared to the combined load factor of 79.7 percent for the same period in 2010.  This release, as well as past news releases about Southwest Airlines Co., is available online at southwest.com.     SOUTHWEST AIRLINES CO. PRELIMINARY COMPARATIVE TRAFFIC STATISTICS      SOURCE Southwest Airlines Co. For further information: Investor Relations of Southwest Airlines Co., +1-214-792-4415 ... View more

I'm being swallowed by pillows of white, chocolate, and strawberry. So heavy I can't swim, but so tasty I'm swallowing my way to the surface.  I make my way to the top of this endless frost to see a sea of color. This milkshake river is not a detriment; it is a panacea. I am in ice cream paradise. Just as I'm about to dive back in, my alarm goes off.    It's all a dream.   At this point, I become concerned.   "I just dreamed about swimming in a Neapolitan Shake I've just consumed," I think to myself. This really happened.  Well, not really, but really.   There are times in our lives that serve as symbolic, silent motivators that spur pivotal change.  Dreams, or wild ideas, that snap you into fixing something that's broken, if not simply doing things a little differently. I could wax poetic about it, but you might color me crazy if I, under this particular circumstance, lament about how such a dream about swimming in a milkeshake has changed my outlook for 2012. And alas, to declare victory about a resolution that's just past its inception would be hexing, and certainly wouldn't demonstrate my resolve.   But here I am.  Here we are: 2012. A brand new start, and another chance to do it right from the beginning (if not only symbolically). My resolution is routine, without the accompanement of this bizarre dream: I'm giving up fast food in 2012.   That's it.  Only, that's not just it. Those who know me will point out just how difficult this will be for me. But I'm gonna do it.  So if I plead for an extra pack of peanuts on the plane, please oblige me. It's for the good of all mankind.   But enough about me.  Here's a look at some of our Blog Team Members' New Year's Resolutions:   Whitney Bartels I’m usually not very good at keeping (or even making) New Year’s Resolutions. Seems I always overestimate my ability or desire to eat healthier, read more, cut back on spending or whatever it may be. Inevitably, I usually fail in the end, or worse, forget altogether that I’d resolved to live differently. So, this year, I am trying something new (no time like the present, eh?).  This year, my resolution is to cultivate gratitude. Allow me to explain. This past October, I traveled on a mission trip to the villages of Honduras. It’s not until you spend a week amongst the world’s most impoverished people that you realize how much we have to be grateful for. Not only this, but I was convicted by the lack of time I spent appreciating that which I have to be grateful for- family, friends, employment, a home, to name a few.      So this year, gratitude will be my focus. Here’s how I’m starting: I am taking time to thank those in my life who have allowed me to have opportunities such as traveling to Honduras, and those who have provided necessities for me such as education and employment.  Saying thank you may be a small start, but I’m committed to focusing on being grateful this year, and not forgetting to cultivate this habit year-round.    Krista Crow My New Year's Resolutions: 1.  Remember to always read things twice - Understand what you are reading before you stick your foot in your mouth and say something stupid. 2.  Be careful to say exactly what you mean - Your children have outsmarted you before.  3.  Think before you speak in the morning - Just because you had a dream about it doesn't mean your husband really said that to you. 4.  Be careful what you ask for - That's how you got those mixing bowls for your anniversary.  5.  Above all else, be kind - You may be having a hard day but someone else's may be much, much worse.   Annie Hoelzel My most immediate goal is to recover from my recent nose surgery so I never have to have another one.   I've decided I need to travel more, so I will try to visit at least three new cities this year and one new country. My third resolution is to finish the re-write of my novel, The Stowaway. And my last goal is to finish a half-marathon in under 3 hours and 45 minutes.   Brian Lusk I've never been one for resolutions. The term sounds like a promise that a politician might make, so I don't make something I can't keep.  However, I do set goals, especially goals for Flashback Fridays. I am on a quest for the following: photos of our first day of operation, photos of the interior of our first gates on the North Concourse, and oh yeah, world peace. Not much I can do about the latter, but hopefully, the former will happen.     Christi McNeill I saw someone else say this on Pinterest, so I cannot completely claim it as my own, but it’s a great idea and seems pretty easy for gift-giving, home goods, and accessories:     Happy New Year, everyone! Here's to a great 2012! ... View more

Yes, I confess, we skipped 32. Our checks and balances system failed (along with my math skills, or lack thereof). So we'll call this SWA Stew 33 1/3, while paying homage to Naked Gun. Episode 32, meanwhile, will be our proverbial "13th Floor." ... View more

I don't have a fire place on which I can roast chestnuts. If Jack Frost were to nip at my nose, I'd probably file a restraining order, or at least get my head checked. I can probably get on board with yule tide, though.    Still, I sometimes think I'm steadily on my way to celebrating Festivus, and not for lack of loving Christmas.  I'm a holiday fanatic.  I love the season.  My story begins in Waco, TX ... Christmas Eve, 2006.   It was my first Christmas away from home, and I had to work.  My parents had mailed me presents, the majority which I vowed to wait until Christmas to open.  My heater was on the fritz, so I was freezing. The only sanctuary from my holiday nightmare came in the form of a Christmas channel on iTunes Radio.  As I slipped into slumber, Jack Frost nipping at my nose (musically and literally), I thought to myself, "Hey, I can do this. I can do Christmas alone."   I awoke at 3:00 a.m. Not a creature was stirring, not even a mouse ... or my iTunes Radio.  No, instead, echoing throughout my apartment was the repeated phrase, "Channel not available."   It was then that I knew my 2006 Christmas would be lost forever.   So when I hear The Christmas Song, which is beautiful, by the way, I think my restraining order is more against that experience than the song itself.   But I digress.  Here's a glimpse at the Top 5 blog posts of this week:   A young up-and-coming artist named Abraham had his first art show at 35,000 feet. Our buddy Jay Baer was lucky enough to be on that flight, and wrote about it.   Ever wonder what a day is like at Love Field in Dallas, TX? Stephen M. Keller took the time to find out, in this video set to some rad music from Austin-based Mother Falcon.   Our always popular annual 12 Days of LUV contest has returned.  Click here to find out how you can join in on the fun (and great prizes).   Soles4Soles is an organization we've supported in the past, and so it's very fitting that one of our Flight Attendants also appreciates the nonprofit organization's efforts. This post from the organization's CEO, Wayne Elsey, really made us proud.   If it ain't Boeing, we ain't going.  And so it's a good thing we've renewed that commitment by making Boeing's first firm order for the 737 MAX (that makes us the launch customer, and first fly the aircraft commercially). Thanks, also, to our friends at Boeing who took the time to recognize our efforts on Nuts About Southwest.  Back atcha, Boeing! ... View more

Dallas, TX. Dec. 14, 2011 — When it comes to great Employers, the Employees know best. Glassdoor, a jobs and career community where people share workplace insights, has announced its fourth annual Employees’ Choice Awards, revealing this year’s top 50 “Best Places to Work,” based on surveys collected from U.S.-based employees in 2011. Southwest Airlines has been recognized as one of the top 50 Best Places to Work, a significant achievement, as nearly 150,000 companies are rated by their employees on Glassdoor. “Glassdoor’s employees’ Choice Awards recognize stand-out companies that have retained the support and commitment of their employees despite the tough economic climate,” said Robert Hohman, co-founder and CEO of Glassdoor. “Through anonymous employee reviews and surveys, Glassdoor offers a unique look into the top U.S. employers and some of the factors that make employees at these companies more satisfied with their jobs. For companies on the list, we typically get positive feedback on the company culture, benefits and open communication practices while we also tend to see competitive pay packages and high opinions of the chief executive.” Glassdoor’s Employees’ Choice Awards rely solely on the input of employees, who provide constructive feedback on their work environment and senior management throughout the year via an anonymous survey. The survey addresses eight key workplace factors that include work/life balance, career opportunities, communication, compensation and benefits, fairness and respect, employee morale, recognition and feedback, and senior leadership. The ranking of the top 50 list was determined by each company’s overall Glassdoor rating, which is the cumulative average rating from employees who elected to participate in a 20-question survey between Dec. 1, 2010 and Nov. 23, 2011. “Here at Southwest, every ONE matters.  We have the best workforce in the aviation industry and we are not afraid to show it.  For the past 40 years, our Employees have surpassed our goals and have made Southwest Airlines the largest and the best domestic carrier, “said Jeff Lamb, Southwest’s Executive Vice President, Chief People and Administration Officer. “At Southwest, our Employees are filled with passion; we work hard and we learn from our mistakes. This makes us a stronger as a Company and the best place to work.” The complete list of the Glassdoor 2012 Top 50 Best Places to Work can be found here: http://www.glassdoor.com/Best-Places-to-Work-LST_KQ0,19.htm.  A complete copy of the Glassdoor survey along with additional information about the Best Places to Work methodology may be requested via email to: BestPlacestoWork (at) Glassdoor (dot) com. To receive regular updates from Glassdoor, visit the blog (http://www.glassdoor.com/blog/) and follow the career community on Twitter, Facebook, and LinkedIn . About Glassdoor Glassdoor is a free and anonymous jobs and career community offering an inside look at companies and access to millions of job listings. Glassdoor helps employees, job seekers, employers and recruiters find and share detailed information on nearly 150,000 companies, such as Facebook, Google, Chevron, J.Crew, NIKE and PricewaterhouseCoopers.  This proprietary user-generated content includes salary data, company reviews, interview questions and reviews, office photos and CEO approval ratings. Glassdoor was founded in 2007 and launched its website in 2008. Headquartered in Sausalito, Calif. Glassdoor has raised $22.2 million from its founders, Benchmark Capital, Sutter Hill Ventures and Battery Ventures. More information about Glassdoor can be found on its blog, and by following the company on Twitter, Facebook and LinkedIn. About Southwest Airlines In its 40th year of service, Southwest Airlines continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 37,000 Employees systemwide. Earlier this year, Southwest Airlines completed the acquisition of AirTran Holdings, Inc., and now operates AirTran Airways as a wholly-owned subsidiary. AirTran serves 63 cities in 30 states and currently operates more than 790 flights a day. Additionally, AirTran serves seven international destinations in the Caribbean and Mexico. AirTran employs more than 8,500 Employees across the country. ... View more

150 Firm Orders for the Fuel-Efficient Aircraft Complements Southwest's Fleet Modernization Plan; First Deliveries of New 737 MAX Aircraft Scheduled for 2017  DALLAS, Dec. 13, 2011 – Southwest Airlines is once again leading the industry by teaming up with its longtime partner to become the launch Customer of Boeing's new 737 MAX aircraft. Southwest is the first Customer to place firm orders for the new, more fuel-efficient 737 MAX, and the Company also will become the first airline to accept delivery of the new aircraft in 2017. As the launch Customer of the 737 MAX, Southwest extends its legacy with Boeing as the 737 launch Customer for the -300, -500, and -700. The 737 MAX is the new-engine variant of the world's best-selling airplane, building on the strengths of today's Next-Generation 737 (737NG) technology, and is powered by CFM International LEAP-1B engines. For more information, visit: www.swamedia.com. In its ongoing effort to improve fuel efficiency while extending its record of unparalleled Customer Service and profitability in the airline industry, Southwest has placed a firm order for 150 Boeing 737 MAX airplanes, with the first delivery scheduled in 2017. The Company also expanded its current order book with Boeing for 58 additional 737NG aircraft. These new orders join an existing firm order book of 142, bringing Southwest's total firm orders with the Boeing Company to 350 for 2012 through 2022, which are intended to predominately serve as replacement aircraft as the airline continues the modernization of its fleet. "Today's environment demands that we become more fuel-efficient and environmentally friendly, and as the launch Customer of the Boeing 737 MAX, we have accomplished both," said Gary Kelly, Southwest Airlines Chairman, President, and CEO. "We are teaming up with our friends from Boeing to lead the industry in a way that makes both our Shareholders and our Customers proud to associate with Southwest Airlines. Today's announcement will allow us to maintain our position as a low-cost provider in the years ahead." "We are enthusiastic about our fleet modernization plans, and especially about becoming the launch Customer for the Boeing 737 MAX," said Mike Van de Ven, Southwest Airlines Executive Vice President and Chief Operating Officer. "The much improved fuel efficiency of the 737 MAX will enable us to improve our fuel costs, as well as our environmental performance, with great comfort and reliability to offer to our Customers." Van de Ven continued, "Overall, we expect the superior economics of our fleet modernization plan to meet our 15 percent pretax return requirement and provide substantial flexibility to manage our growth in a variety of economic conditions over the next decade. Additionally, these new aircraft will enhance the Customer Service offering with the new Sky Interior." The 737 MAX with LEAP-1B engines will reduce fuel burn and CO2 emissions by an additional 10-11 percent over today's most fuel-efficient single-aisle airplane. It will have the lowest operating costs in the single-aisle segment with a seven percent advantage over its competition. The 58 new 737NG firm orders include the exercise of 25 previously existing options. The Company has substituted -800s for all -700 737NG deliveries scheduled for 2012 and 2013 in addition to a portion of its 2014 deliveries. For the 737 MAX order, the Company has flexibility to accept MAX 7 or MAX 8 deliveries. The revised order book also includes 78 737NG options and 150 737 MAX options, bringing total option positions from 2014 through 2027 to 242. Additional information regarding the Company's 737 future delivery schedule is included as an accompanying table. Press Conference Southwest Airlines will present the key benefits of today's announcement at a live press conference today from Southwest Airlines Headquarters in Dallas, Texas, at 9 a.m. Central Standard time (10 a.m. EST). A live broadcast and replay of the conference will be available at http://www.videonewswire.com/event.asp?id=84090. Presentation materials from the press conference will be made available at www.southwest.investorroom.com and www.swamedia.com. About Southwest In its 40th year of service, Southwest Airlines continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 37,000 Employees systemwide. Earlier this year, Southwest Airlines completed the acquisition of AirTran Holdings, Inc., and now operates AirTran Airways as a wholly-owned subsidiary. AirTran serves 63 cities in 30 states and currently operates more than 790 flights a day. Additionally, AirTran serves seven international destinations in the Caribbean and Mexico. AirTran employs more than 8,500 Employees across the country. 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 and Section 21E of the Securities Exchange Act of 1934. Specific forward-looking statements relate to Southwest's fleet plans and expectations, including without limitation (i) the anticipated timing of the introduction of the Boeing 737 MAX aircraft to Southwest's fleet, (ii) the anticipated benefits of the Boeing 737 MAX and Next-Generation 737 aircraft to Southwest and its Customers, and (iii) the anticipated environmental benefits of the Boeing 737 MAX. These forward- looking statements are based on Southwest'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) Southwest's dependence on Boeing, as well as Southwest's and Boeing's dependence on third-party providers, to perform in accordance with expectations in connection with the manufacture and delivery of aircraft; (ii) the impact of fuel prices, economic conditions, consumer demand, and other factors on the Company's overall business plan and strategies; (iii) the impact of governmental regulations on the airline industry and related industries, and (iv) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010. www.southwest.com   (a) The Company has flexibility to substitute 737-800s in lieu of 737-700 firm orders (b) The Company has flexibility to accept MAX 7 or MAX 8 deliveries (c) New delivery leased aircraft CONTACT: Southwest Communications, +1-214-792-4847  ... 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Dave Thomas once said, “It all comes back to the basics.  Serve customers the best tasting-food at a good value in a clean comfortable restaurant, and they’ll keep coming back.”  Well now there are even more reasons to return to Wendy’s® than their signature square-shaped burgers, natural cut fries, and Frostys - a chance to win amazing prizes and a year of travel on Southwest Airlines. Two’s the Reason to be Jolly this Holiday Season!  Visit a local Wendy’s and receive a code to enter for two chances to win when you buy a W Combo at Wendy’s®.  Log on to www.twosthereason.com, enter your code, and you could win a prize for you and one of your friends.  Prizes include tablets, 3DHD TVs, gaming stations, MP3 players, W Combos for a year and a year of travel on Southwest Airlines. If you can’t make it in to Wendy’s, visit www.facebook.com/wendys, become a fan and receive a code for your chance to win. Good luck and Happy Holidays! ... View more

At the end of this video, I handed Michael, our current video intern, a present on behalf of his Secret Santa.    Since it's Friday, when we reveal ourselves, I'm taking the liberty of coming clean on the blog:   Dear Michael, I'm your Secret Santa.  I know you didn't ask for donuts, but I gave them to you anyway. The look on your face was one of perplexity, and for good reason. Like when I was a youngster and asked for a Sega Genesis, but was instead given a toy train. Know this, though, Michael: I didn't realize it at the time, but that train had legs. Up until college, we set it up every Christmas. I'm currently rocking a new video game system. So you see, Michael, the donuts may have a lasting affect on you. And you've had a lasting affect on us.  I know we're entering your last week as an intern, and you have a big road trip ahead of you.  I learned this from your Secret Santa form. So, I've decided to provide for you a care package to get you through the most dire points of your voyage, followed by a celebratory treat for the end (Michael's of age, everyone). If this doesn't please you, I'm a colossal failure. Sincerely, Brooks I think he'll like it. Onward, though, to our top five:   Think you and your sweetheart got a good thing going?  Then obviously you haven't met Harold & Edna.  Read about their recent trip to Vegas to celebrate eighty years of holy matrimony!   Do you have a Southwest story?  Want to share it with us?  Read this post to find out how you can do so, and potentially make it on television!   Two World War II veterans were honored on the SWA Stew.  One here, and another here.  By the way, are you wearing red every Friday?   Finally, Resident Historian Brian Lusk has a look at the Interchange Era.   ... View more

DALLAS, TEXAS – December 6, 2011 – Southwest Airlines Co. (NYSE: LUV) today reported November 2011 combined traffic results for Southwest Airlines and AirTran.  AirTran became a wholly-owned subsidiary of Southwest Airlines Co. (“the Company”) on May 2, 2011.  For purposes of comparability, the Company is providing combined traffic results for Southwest Airlines and AirTran for periods prior to the acquisition date.  See the accompanying tables for combined results. The Company flew 8.3 billion revenue passenger miles (RPMs) in November 2011, compared to 8.1 billion combined RPMs flown in November 2010, an increase of 2.5 percent.  Available seat miles (ASMs) were 10.1 billion, an increase of 0.7 percent from November 2010 combined ASMs.  The load factor for November 2011 was 81.6 percent, compared to the combined load factor of 80.2 percent in November 2010.  For November 2011, passenger revenue per ASM (PRASM) is estimated to have increased approximately nine percent as compared to November 2010’s combined PRASM. For the first eleven months of 2011, the Company flew 95.7 billion combined RPMs, compared to 89.4 billion combined RPMs flown for the same period in 2010, an increase of 7.0 percent.  The combined year-to-date ASMs increased 5.2 percent to 118.1 billion in 2011, compared to the combined level of 112.2 billion for the same period in 2010.  The combined year-to-date load factor was 81.0 percent, compared to the combined load factor of 79.7 percent for the same period in 2010.  This release, as well as past news releases about Southwest Airlines Co., is available online at southwest.com. ... View more

Southwest Airlines and AirTran Airways Receive Route Approval from the US DOT to Operate New International Flights; Fares as Low as $109 one-way             DALLAS—Dec. 5, 2011—Southwest Airlines and its wholly owned subsidiary AirTran Airways announced today the carriers received route authority approval from the U.S. Department of Transportation (DOT) for AirTran to operate international flights to new destinations in Mexico beginning as early as May 24, 2012. AirTran’s new international flights will include one daily roundtrip between Orange County, Calif., and Cabo San Lucas/San Jose del Cabo* and one daily roundtrip between Orange County and Mexico City.* AirTran also will initiate four weekly roundtrip flights between San Antonio and Cancun* as well as one daily roundtrip flight between San Antonio and Mexico City.*             “With the DOT’s approval, we are excited to now make these destinations available for sale to both AirTran and Southwest’s Customers,” said Bob Jordan, Southwest Airlines’ Executive Vice President and Chief Commercial Officer and AirTran Airways President. “The new service is another direct benefit of Southwest’s acquisition of AirTran as we take low fares farther by expanding our route maps to more places Customers want to go.”  Examples of these one-way fares include (see Fare Rules below): AirTran new service beginning May 24, 2012 (open for sale today): $119 one-way between San Antonio and Cancun $119 one-way between San Antonio and Mexico City AirTran new service beginning June 3, 2012 (open for sale today): $119 one-way between Orange County and Cabo San Lucas/San Jose del Cabo $109 one-way between Orange County and Mexico City To celebrate the new international service, AirTran launched a fare sale today with fares as low as $109 one-way between the new destinations.  Customers must book by Dec. 19, 2011, in order to take advantage of these low fares. Currently, all reservations for AirTran flights—including international destinations—must be booked on www.airtran.com, by calling AirTran reservations at (800) 247-8726, or through a travel agent. Southwest Customers can now see AirTran’s nonstop international routes on southwest.com through its new web referral tool which links Customers directly to www.airtran.com. When Customers select an international itinerary from a nonstop destination on Southwest’s site, they will then be directed to www.airtran.com where they can complete the booking process.  All flights booked on www.airtran.com will be subject to AirTran’s policies and procedures.        To support the new international flights out of Orange County’s John Wayne International Airport, a market AirTran does not currently serve, AirTran will add domestic service between San Francisco and Orange County with one daily roundtrip flight, and one daily roundtrip flight between Las Vegas and Orange County, beginning June 3, 2012. ABOUT SOUTHWEST Southwest Airlines, which this year celebrated its 40 th Anniversary, continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. With the addition of Atlanta (which opens on Feb. 12, 2012), Southwest will serve 73 cities in 38 states and remains one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 37,000 Employees. ABOUT AIRTRAN AirTran Airways, a wholly owned subsidiary of Southwest Airlines Co., has been ranked the top airline in the Airline Quality Rating study twice in the past four years. AirTran offers Gogo Inflight Internet Connectivity and coast-to-coast service on North America's newest all-Boeing fleet. The airline's low-cost, high-quality product also includes assigned seating and Business Class. To book a flight, visit airtran.com. Introductory Fare Rules All fares are one-way. Fares do not include segment taxes of $3.70 per segment. A segment is defined as a takeoff and a landing. Fares shown do not include Airport Passenger Facility Charges of up to $18 roundtrip. The September 11th Security Fee of up to $10 roundtrip is not included. Fares to/from Bermuda, Mexico and the Caribbean do not include additional government taxes of up to $100. All fares are nonrefundable and a $75 fee per person applies to any change made after purchase, plus any applicable increase in airfare. Seats are limited, subject to availability, and may not be available on all flights. Fares available for purchase Dec. 5, 2011, through Dec. 19, 2011, 11:59 p.m. PST. Fares are available for travel between San Antonio and Cancun or Mexico City beginning May 24, 2012, through June 26, 2012, with a blackout date of May 28, 2012. Fares are available for travel between Orange County and Cabo San Lucas/San Jose del Cabo or Mexico City beginning June 3, 2012, through June 26, 2012, with blackout dates of June 10, June 17, and June 24, 2012. Sale fares between San Antonio and Cancun or Mexico City are valid for travel every day except Fridays, Saturdays, and Sundays. Sale fares between Orange County and Cabo San Lucas/San Jose del Cabo or Mexico City are valid for travel every day except Fridays and Saturdays. A first bag may be checked for a fee of $20 each way and a second bag may be checked for a fee of $25 each way. Reservations may be made via AirTran Airways Telephone Reservations Center for a fee of $15. Reservations may also be changed via AirTran Airways Telephone Reservations Center for a $15 fee plus any applicable change fees and fare differences. Fares, routes, and schedules are subject to change without notice. southwest.com ... View more

How did they let us make it to 30 SWA Stews? This week, we're recapping three great stories from Military Heroes Month, a story about Rapid Rewards Shopping, and Holly: the Most Remarkably Kind Flight Attendant.   ... View more

A few days ago, I asked members of the Blog Team to share thoughts on what each of them was thankful for this Thanksgiving. Only fair that I rise to the occasion as well. Yes, as the picture indicates, I am a huge fan of pumpkin pie.    We are all thankful for our Families (blood-related and Southwest-related), our great service men and women, our great Customers, and our great Company.  This only scratches the surface, though, so let's examine some specifics:    The den in my parents' house, where we enjoy evening television, has multiple personalities. There is no one feature or discernable theme, except that it is eclectic, to say the least.  Pictures from throughout our family's crazy adventures; items acquired during those adventures; some bought off eBay, a representation of mostly my Dad's life memories. Every trinket in the room, large or small, has meaning (though admittedly, meaning is more readily discoverable in some of the items than in others).     If I had to choose a favorite item (or ensemble of items, in this case), I would choose the tin soldiers nestled inside the English telephone booth in the corner of the den. Each level is a different historical scene (I haven't included all of them because one scene is particularly controversial in nature). I am currently working on adding to the Ancient Egpytian scene (currently, there's a Pharoah overseeing a mummy-wrapping).     All of the aforementioned is my ambiguous nod to those things for which I am thankful. Tradition. Family. Friends. A healthy life that has allowed for all of these adventures. Values that I hope to someday pass on to my own children.   Happy Thanksgiving, y'all.   Ally Harrington Customer Service Agent Supervisor, FLL Where in the world would I rather be than the airport on Thanksgiving? It's almost become a tradition in itself, working on the holiday. Most people look at you funny when you tell them, "We celebrated our Family Thanksgiving a week ago!" With everyone so busy, celebrating a week early is the best way to go. The grocery stores are open, no crowds, and you can brag about the meal and make your friends mouths water talking about your delicious dinner.  Every year, we have fried turkey and a fantastic sweet potato soufflé. I don't mind working on Thanksgiving; Southwest Airlines is, after all, my home away from home.   I'm going on 15 years with this great Company.  I'm so thankful for the many blessings in my life: my awesome husband, a wonderful, yet crazy family, and for the security of my job with Southwest Airlines. Like that of my own family, my Southwest family also has its quirks! I Every year at work, we bring in goodies to share with each other, we lean on each other with the fun, challenging work day.  Yeah, turkey is great, and I'll never pass up more mashed potatoes (with sour cream), but I look forward to getting all our Customers home for the Holidays, Southwest-style! Annie Hoelzel Crew Scheduler I would like to take this moment to give thanks for some of the wonderful blessings in my life.  I am thankful for loving and supportive parents.  I am thankful for my friends.  I love them more every day.  I am thankful for my job and the greatest Coworkers I’ve had the privilege to work with.  I am thankful for my Jeep (hey, I can’t help it, it’s made of awesome!).     I am so grateful for my once-in-a-lifetime trip to Italy.  It was an amazing chapter in my life.   I have so much to be thankful for, I cannot count all my blessings.  I am an in excellent place in my life and I will never forget what it took to get here.  It has been a great 2011.  I am thankful for this year. Have a wonderful and happy Thanksgiving!   Bill Owen Lead Planner, Schedule Development This year, I'm thankful for the true happiness, and contentment, to simply to be me—in my own skin, on my own turf, and living my own life.  Finally, after 53 years on the planet, I am happy to be exactly who I am.  Not someone else, not a different, “tastes great, less filling” me.....just me.  Trust me, after five decades of self-doubt, of being told what I should be or what I ought to be, and even worse being told what I could never be, accepting—and appreciating!—who I am is not only a milestone, it's such a relief!  Can there always be improvements?  Of course, and I’ll always aspire to be a better me.  But I’m now at long last thankful to be just, simply, me.  So watch out, world…you never know what “me” may do!  Happy Thanksgiving, everyone! Brian Lusk Corporate Historian I am thankful for dogs, for their loyalty, for their unconditional love, and for the smiles they put on my face.     I'm amazed how they communicate without speech and how they know what I'm thinking.    Elise May Assistant Safety Manager I was diagnosed with cancer at the end of 2010, so I am very thankful to have another holiday to spend with my son, Matthew. The support from my family, friends, SWA Family, doctors, and others was amazing. I am thankful for every card, phone call, and hug that were shared with Matthew and me.     Six months after my diagnosis, my dad was diagnosed with bladder cancer. Sadly, he passed away in September. I am thankful that I got to spend so much time with him this year and that his legacy will live on in my son. This time of year is a perfect time to reflect on all the blessings in our lives.     Even though this year held a lot of challenges and sadness for my family, I am incredibly blessed to be surrounded by caring, loving people who were there to catch me when it was needed most. Captain Joe Gautille Pilot Like many Southwest families, we have our Thanksgiving Day traditions. Having the family together, as the years go by, is the biggest blessing, but spending the day together starting with breakfast and the Macy's Thanksgiving Day Parade is a great kick-off. Not to forget Thanksgiving Day football, especially our hometown team, the Dallas Cowboys, who have been hosting this NFL game since 1966. The highlight of the day is a traditional Thanksgiving Day dinner, giving thanks for our many blessings, eating way too much food and enough turkey tryptophan to put everyone into nap time after dinner.   A Thanksgiving tradition for our family has been the day-after road trip to Terrell, TX to cut down our Christmas tree. The day-after-Thanksgiving begins our Christmas celebration, which lasts until New Year's Day.  We have been journeying to the Wall's Family Farm for over 15 years now and it has become a most anticipated event on the heels of Thanksgiving. Traveling together for the one-hour drive east of Dallas to this wonderful Christmas tree farm is a fun time in itself. Once we navigate the country roads to arrive at the brightly painted red farmhouse with Christmassy white trim, the fun really begins. It’s hot chocolate, Christmas Carols, a hay ride to the Christmas Trees, and then taking turns cutting the tree down while lying on the ground sawing away. Driving home with the tree on the roof is the end of Thanksgiving and the beginning of Christmas for our family. A wonderful family tradition.  Kari Kennedy Maintenance, Project Support Manager I'm thankful for friends who don't mind taking an orphan in with their own family.  I have family spread out along both coasts and rarely travel during the Thanksgiving craziness.  It's always fun to have dinner with different friends each year.  What's traditional to one family isn't to another.  Who knew that my favorite marshmallowed yams weren't a staple at everyone's table?   I'm also thankful for big box hardware stores.  This four-day weekend is always a great time to tackle those home improvement projects that would normally take more than a regular weekend to do!   Krista Crow CS&S, Customer Representative What am I thankful for?  A lot of different things come to mind. My family, my children, my friends, my job; but there is one thing that I thought of which I am particularly thankful for this year.  It is the one thing that keeps me sane.  It has the ability to make me laugh or cry. It keeps me from getting bored. It makes my husband's driving tolerable. Of course, I am talking about my Nook Color.  I am so grateful for all the distractions it provides me.  It goes everywhere with me and never complains. It never asks, "Are we there yet?"  And best of all, it never asks me, "What's for dinner?"  What could be better than that?   Mike Sims Cabin Services, Dir. of Base Operations Happy Thanksgiving!  I am thankful:  for my incredible parking karma.  Ride with me to the mall and you will be amazed too for the fact I can bake Thirty-Minute Brownies in twenty minutes flat that I can nail any movie quote, thus proving I know almost everything about absolutely nothing that my staring contest competition record this year is 10 and 6—all that mirror training is starting to pay off that 5 out of 4 People have trouble with fractions (just like me) for gravity.  There’s been many a time I felt I was about to fall off the earth, but it didn’t happen for pie—especially pumpkin pie for haiku. that I can pilot bicycles up severe inclines with unflagging speed that I have eaten no candy corn this year-and won’t that I learned during my public school education that "elemenopee" wasn't one awesome letter With all that being said, I am very thankful that our military continues to protect our nation and have sacrificed so much for our freedom.  I am thankful for my family and all of my colleagues at Southwest Airlines.  What a wonderful place to work!  I am thankful for our Southwest Customers.  We LUV you. Thank you. Whitney Bartels Customer Relations Specialist This Thanksgiving will mark the beginning of my second year at Southwest Airlines. With this new journey I’ve begun, I am thankful for countless blessings that come with working for such a strong Company. Much has changed since I first started here at Southwest, and admittedly, I am not one who takes kindly to change.  But with these changes also come open doors- new adventures, new beginnings, and new opportunities.  Perhaps the most valuable asset I’ve gained since beginning my career at Southwest is the People that have stood beside me through the ups and downs. And no matter what may be different come this time next year, I am thankful for the home I have at Southwest Airlines. I am confident that no matter where I go, or what happens, or how many times I fail (or succeed!), I will have a Family here at Southwest, welcoming me home with open arms.     ... View more

A crooked monitor and a broken teleprompter. Would we prevail? We'll let you be the judge for this Thanksgiving edition of the SWA Stew. ... View more

Last year was my first year to volunteer for Kidd’s Kids. Nothing could prepare me for the emotional impact it would have. Seeing the smiling faces of so many sweet children, who don’t always have a chance to grin, remains vivid in my memory. We at Southwest have the privilege to play a prominent role in the voyage of more than 40 children and their families to Orlando, by providing a WiFi-equipped plane. Each year, we transform one of our Maintenance hangars into the scene of a big gala, and treat each of our guests like royalty. There are movies, games, and other fun activities, before Kidd Kraddick kicks things off, and everyone loads up on one of our Canyon Blues, bound for the Magic Kingdom. This year, I learned words can't express the joy these children experience. So here are some pictures that better illustrate the point. Thanks to Stephen M. Keller, for snapping the photos, and our Multimedia Head Honcho Rich Matthews, for a video you'll see soon. ... View more

Southwest Airlines is selected for a third year in a row and is the only airline to be included in the prestigious list DALLAS, TX – Nov. 15, 2011 – Southwest Airlines announced today that it has been designated a 2012 Top Military Friendly Employer® by G.I. Jobs. This marks the third consecutive year the Company has been included in the Top 100 Military Friendly Employers® list, which was drawn from a sample of 5,000 companies whose annual revenues exceeded $500 million. Criteria included the strength of company military recruiting efforts, the percentage of new hires with prior military service, retention programs, and company policies toward National Guard and Reserve service. Some of Southwest’s most accomplished, dynamic up-and-coming Employees transitioned from the military. Southwest Airlines looks for “military alumni” who are smart, innovative, responsible, team players and team builders, all common traits for those who have worn our country’s military uniforms. Employees with military experience often cite their decision to join Southwest as a way to continue their service to the nation but in a different and challenging way. “Our network is comprised of an amazing variety of backgrounds, experience, and uniqueness that gather together to form our Corporate Culture. This means Southwest benefits from richness in the diversity of ideas, knowledge, and actions,” said Jeff Lamb, Southwest Airlines’ Executive Vice President, Chief People and Administrative Officer.  “Our success is directly linked to the best work-FORCE in the industry.  We are proud of our Employees and we especially salute those who have served or are currently serving in the armed forces.” To honor its Employees and Customers who are currently serving or have served in the armed forces, Southwest Airlines is celebrating "Military Heroes Month" in November to show support for veterans and service members across the nation. By working with multiple nonprofit organizations throughout the month, the airline is saying thank you by giving back and helping to raise money to support military service members and their families. Sample November Activities: Nov. 23 - 26 - Home for the Holidays, San Diego Southwest is partnering with Home for the Holidays (HFTH) to provide transportation for six Veterans and their families from their military base in San Diego to their family homes to share this special season together. HFTH is a not-for-profit organization whose mission is to bring military families together during times of need, celebration, or life-changing events. November - The Boot Campaign, Nationwide Southwest has a strong relationship with The Boot Campaign, which provides an easy and tangible way for Americans to show appreciation for troops (both past and present), raise awareness of the challenges they face upon return, and donate funds to charities supporting their transition home. In early November, The Boot Campaign will debut a photo of Southwest Chief Executive Officer Gary Kelly wearing his combat boots. Visit http://www.bootcampaign.com/mission.html About Southwest Airlines Southwest Airlines has a long history of supporting the men and women who fight for our Freedoms. G.I. Jobs Magazine has named Southwest Airlines one of the Top 100 Military Friendly Employers. After 40 years of service, Southwest Airlines continues to differentiate itself from other low fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded, now serving 72 cities in 37 states, with the addition of Atlanta beginning Feb. 12, 2012. Southwest also is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/citizenship to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 37,000 Employees systemwide. ... View more

This delayed, holiday-themed SWA Stew brings to you Halloween gloriousness and a sneak pic at what we have brewing for Customers after Thanksgiving. Of course, that's not all! ... View more

Mon, Nov 07, 2011 DALLAS, Nov. 7, 2011 /PRNewswire via COMTEX/ -- Southwest Airlines (NYSE: LUV) today announced a seniority integration agreement has been ratified between the Southwest Airlines Pilots' Association (SWAPA), the union representing Southwest Airlines Pilots, and the Air Line Pilots Association (ALPA), the union representing the pilots of AirTran Airways. This agreement integrates the two groups' seniority lists. SWAPA's Board of Directors and ALPA's Master Executive Council both approved the agreement in September, allowing the membership of each Pilot's Union to review the proposed agreement and ultimately ratify. Southwest Airlines finalized closing of the acquisition of AirTran Holdings, Inc. on May 2, 2011. "The ratification of this seniority integration agreement is a significant milestone in the integration of our two great Airlines, and wouldn't have been possible without the Leadership of our Company's negotiating committee bringing all parties together," said Mike Van de Ven, Southwest Airlines Executive Vice President and Chief Operating Officer. "I'd also like to commend the SWAPA Negotiating Committee and the ALPA Merger Committee for working around the clock to ensure all Pilots were educated and informed, and that their interests during this process were represented in a fair and equitable way. I applaud their diligence, and I look forward to seeing our two Pilot groups become one." "Today marks the beginning of an exciting future for our Pilots and our airline," added Capt.Chuck Magill, Southwest Airlines Vice President of Flight Operations. "Now more than ever I am proud to be a part of our industry-leading group of Pilots who had the foresight and willingness to reach an agreement that other Pilot groups have left to a third party." There is still work to be done to integrate the more than 6,000 Southwest Airlines Pilots, and 1,700 AirTran Pilots. Integration Teams made up of Pilots from both groups have already been formed and are moving forward in an effort to make the combining of the two groups as seamless as possible. About Southwest Airlines In its 40th year of service, Southwest Airlines continues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has recently acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. Southwest serves 72 cities in 37 states and is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 35,000 Employees systemwide. SOURCE Southwest Airlines ... View more

DALLAS, TEXAS – November 7, 2011 – Southwest Airlines Co. (NYSE: LUV) today reported October 2011 combined traffic results for Southwest Airlines and AirTran.  AirTran became a wholly-owned subsidiary of Southwest Airlines Co. (“the Company”) on May 2, 2011.  For purposes of comparability, the Company is providing combined traffic results for Southwest Airlines and AirTran for periods prior to the acquisition date.  See the accompanying tables for combined results. The Company flew 8.7 billion revenue passenger miles (RPMs) in October 2011, compared to 8.4 billion combined RPMs flown in October 2010, an increase of 3.5 percent.  Available seat miles (ASMs) increased 4.0 percent to 10.7 billion from the October 2010 combined level of 10.3 billion.  The load factor for October 2011 was 81.4 percent, compared to the combined load factor of 81.8 percent in October 2010.  For October 2011, passenger revenue per ASM (PRASM) is estimated to have increased approximately six percent as compared to October 2010’s combined PRASM. For the first ten months of 2011, the Company flew 87.4 billion combined RPMs, compared to 81.3 billion combined RPMs flown for the same period in 2010, an increase of 7.5 percent.  The combined year-to-date ASMs increased 5.7 percent to 107.9 billion in 2011, compared to the combined level of 102.1 billion for the same period in 2010.  The combined year-to-date load factor was 81.0 percent, compared to the combined load factor of 79.6 percent for the same period in 2010.  This release, as well as past news releases about Southwest Airlines Co., is available online at southwest.com. ... View more