Southwest Airlines Community

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

Southwest Airlines Reports Third Quarter Financial Results 70th Consecutive Quarterly Operating Profit Southwest Airlines (NYSE: LUV) today reported its 70th consecutive quarterly operating profit. After special charges totaling $247 million primarily related to mark-to-market adjustments on a portion of the future periods' fuel hedge portfolio required by Statement of Financial Accounting Standard (SFAS) 133, "Accounting for Derivative Instruments and Hedging Activities," as amended, the Company reported a third quarter 2008 net loss of $120 million, or $.16 loss per diluted share. This compares to net income of $162 million, or $.22 per diluted share, for third quarter 2007. Excluding these special charges and other special items, the Company reported third quarter 2008 net income of $69 million, or $.09 per diluted share, compared to $156 million, or $.21 per diluted share, for third quarter 2007. Third quarter 2008 also represents the Company's 70th consecutive quarter of net income, excluding special items. The Company's third quarter 2008 net income, excluding special items, of $.09 per diluted share exceeded Thomson's First Call's mean estimate of $.07. Refer to the reconciliation in the accompanying tables for further information regarding special items.     Third Quarter 2008 Financial Highlights:     -- 70th consecutive quarter of profitability, excluding special items     -- Record quarterly revenues of $2.9 billion, up 11.7 percent from third        quarter 2007     -- Net income, excluding special items, of $69 million, down 55.8 percent     -- Net income per diluted share, excluding special items, of $.09, down        57.1 percent     -- Cash settlement gains of $448 million from fuel contracts reflected in        net income Under SFAS 133, a portion of the Company's fuel derivative portfolio is marked-to-market through the income statement if the requirements for hedge accounting have not been met, which can create significant volatility in the Company's financial statements. For contracts settling in future periods, these derivative contracts generally result in recording unrealized gains during periods of rising fuel costs; conversely, during periods of decreasing fuel prices, these contracts generally result in recording unrealized losses. As a result, the $247 million in charges for the third quarter 2008 essentially reversed a large portion of mark-to-market gains recognized in prior periods. These charges led to the net loss reported for third quarter 2008 under generally accepted accounting principles (GAAP). However, the actual cash settlement gains realized in third quarter 2008 from the Company's hedging activities were $448 million, compared to $189 million in third quarter 2007. The Company views its fuel derivative contracts as an integral component of managing its costs related to jet fuel purchases. Therefore, the Company believes it is more meaningful to evaluate its financial performance including the impact of the net cash settlements each quarter and excluding the mark-to- market adjustments for unrealized gains and losses recorded in the income statement for contracts settling in future periods. Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated: "Given today's unprecedented economic challenges, we are proud of our 70th consecutive quarterly profit, excluding the impact of special items. Although we have much work ahead, I am very proud of the substantial progress our People have made to overcome higher operating cost pressures. In particular, our post-Labor Day revenue trends are very strong. And, the Customer reactions to our efforts to firmly establish Southwest Airlines as America's favorite Low Fare Airline are extremely encouraging. "Our third quarter 2008 operating revenues of $2.9 billion were a record performance, increasing a strong 11.7 percent, or 9.3 percent per available seat mile (ASM). Since August, our revenue trends have strengthened, with September operating revenue per available seat mile (RASM) increasing 11.0 percent and October month-to-date RASM increasing approximately 14 percent, versus the respective year-ago periods. I am delighted with the results of our efforts to drive revenue growth, which include:     -- Slowing our capacity growth to under two percent in second half 2008;     -- Continuing flight schedule optimization, including trimming        unproductive and less popular flights and reallocating capacity to fund        attractive market growth opportunities such as Denver, and our newest        city, Minneapolis-St. Paul;     -- Enhancing revenue management technologies, processes, and techniques;     -- Increasing fares gradually; and     -- Aggressively promoting our No Hidden Fee, Low Fare brand. Based on these actions, domestic competitor capacity reductions, and revenue and booking trends thus far, we currently expect a solid increase in our fourth quarter 2008 operating unit revenues, although the current world- wide financial crisis creates uncertainty about future demand. "Turning to operating costs, our third quarter 2008 unit costs, excluding special items, increased 16.0 percent, mostly due to jet fuel price increases. Excluding fuel and special items, our unit costs were up 6.5 percent from the same period a year ago, primarily due to continued maintenance, airport, and fuel tax pressures. With increased cost headwinds associated with minimal ASM growth in fourth quarter 2008, we presently expect our fourth quarter 2008 unit costs, excluding fuel and special items, if any, to exceed third quarter 2008's 6.86 cents. Despite these cost pressures, our operating cost advantage, especially compared to legacy airlines, is as strong as ever. More importantly, we need to aggressively manage costs and productivity to maintain our profitable Low Fare brand. I am very proud of our Employees' ongoing efforts to control costs, improve productivity, and preserve our brand during this challenging environment. "Although we reported a better-than-expected economic fuel cost of $2.44 per gallon, which reflected $448 million in favorable cash settlements from our third quarter 2008 fuel hedge, our jet fuel costs per gallon were 44.4 percent higher than third quarter 2007 and were, by far, the most significant driver of the 16.0 percent increase in our third quarter 2008 unit costs, excluding special items. Although crude oil prices dropped from all-time highs at the beginning of third quarter 2008, they remain significantly higher than historical levels. Looking forward, we have derivative contracts in place for nearly 85 percent of our fourth quarter 2008 estimated fuel consumption at an average crude-equivalent price of approximately $62 per barrel (compared to approximately 90 percent at approximately $51 per barrel for fourth quarter 2007). Based on this derivative position and current market prices, we currently anticipate our fourth quarter 2008 economic fuel costs per gallon to fall in the $2.00 range compared to $1.72 per gallon in fourth quarter 2007. "In addition to our fourth quarter 2008 derivative position, we have derivative contracts for over 75 percent of our estimated 2009 fuel consumption at an average crude-equivalent price of approximately $73 per barrel; approximately 50 percent of our estimated 2010 fuel consumption at an average crude-equivalent price of approximately $90 per barrel; approximately 40 percent of our estimated 2011 fuel consumption at an average crude- equivalent price of approximately $93 per barrel; over 35 percent of our estimated 2012 fuel consumption at an average crude-equivalent price of approximately $90 per barrel; and have begun building a modest position for 2013. "Our fuel hedging program continues to provide us superb price protection. For the nine months ended September 30, 2008, our program saved us $1.3 billion. As of yesterday's market prices, our hedge portfolio was valued at approximately $550 million. Of course, the value of our fuel hedge fluctuates with oil prices. The dramatic drop in energy prices since July is a significant overall benefit for Southwest Airlines, of course, even though the fuel hedge portfolio dropped over the last three months. Even with the drop in prices, our fuel hedge remains "in the money." "With respect to our capacity plans, we have taken delivery of 26 Boeing 737-700 aircraft in 2008, and as a result of the Boeing machinists' strike, we will likely not take delivery of the three remaining aircraft originally scheduled for this year. We have returned eight 737-300 leased aircraft through third quarter 2008 and currently plan to return three additional 737- 300 leased aircraft during the fourth quarter, resulting in planned net aircraft growth of 15 for 2008. For fourth quarter 2008, we expect our year- over-year ASM growth will be about one percent. "While we continue to evaluate our growth plans for 2009, we recently announced the deferral of four 2009 Boeing 737-700 deliveries to 2016. Including the three aircraft originally scheduled for delivery from The Boeing Company in 2008, but likely delayed to 2009 due to their machinists' strike, we now expect to take delivery of 13 Boeing 737-700 aircraft next year (barring any substantial delays in 2009 deliveries due to the Boeing strike). With three 737-300 aircraft lease returns planned for next year in addition to other potential alternatives to reduce our fleet, we currently expect to add no more than ten net aircraft in 2009. While our 2009 fleet plans are not finalized, our flight schedule is currently published through March 6, 2009. First quarter 2009 ASMs are expected to decline in the five to six percent range, compared to first quarter 2008. "Although today's challenges are unprecedented, we are well-prepared and committed to achieving our long-term financial targets and preserving our financial strength. Our unrestricted cash and short-term investment balance was $2.2 billion as of yesterday, including $1.1 billion in fuel derivative collateral deposits. Although our liquidity is healthy, we have made the prudent decision in today's unstable financial markets to access $400 million in additional cash through our bank revolving credit facility leaving $200 million still available. We remain financially conservative and well-prepared with our strong balance sheet and modest debt levels. "Although these are difficult times, our dedicated People continue to deliver friendly, caring, and reliable Customer Service. The recent Southwest recognition by Forbes as "The Most Reliable Airline" is a true testament to our commitment to superb Customer Satisfaction. Other recent Southwest honors include being named "The Friendliest Airline" by TIME.com due to our No Fees campaign and our choice to not nickel and dime our Customers. Southwest Cargo recently received its 14th consecutive Quest for Quality Award, placing first in Ontime Performance, Value, Customer Service and Equipment and Operations. And finally, the Company blog, NutsAboutSouthwest.com, was recently named "Best Blog" for the second year in a row at the PR News Platinum Awards." Southwest will discuss its third quarter 2008 results on a conference call at 11:30 a.m. Eastern Time today. A live broadcast of the conference call will be available at http://www.southwest.com/?src=INVRINV3Q08000000081016 . Operating Results Total operating revenues for third quarter 2008 increased 11.7 percent to $2.9 billion, compared to $2.6 billion for third quarter 2007. Total third quarter 2008 operating expenses were $2.8 billion, compared to $2.3 billion in third quarter 2007. Operating income for third quarter 2008 was $86 million compared to $251 million in third quarter 2007. Operating income, excluding special items, was $147 million in third quarter 2008 compared to $273 million last year. Operating income, excluding special items, reflects fuel and oil expense of $939 million and $659 million for third quarter 2008 and 2007, respectively, which is based on the Company's true economic cost of fuel. "Other expenses" were $291 million for third quarter 2008, compared to "other income" of $26 million for third quarter 2007. The $317 million swing primarily resulted from unrealized "other losses" associated with SFAS 133. These unrealized losses represent the most significant difference between the Company's net loss and net income, excluding special items. The cost of the hedging program (which includes the premium costs of derivative contracts) of $20 million in third quarter 2008 and $14 million in third quarter 2007 is also included in "other (gains) losses." Third quarter 2008 interest expense increased 25.0 percent over last year due to the Company's issuance of $500 million Pass-Through Certificates in October 2007 and the Company's borrowing under its $600 million term loan in May 2008. Interest income for third quarter 2008 decreased $2 million versus the same period last year primarily due to lower market interest rates and lower rates earned from more conservative investments. Lower Boeing aircraft progress payments generated less capitalized interest in third quarter 2008 compared to last year. Net cash provided by operations for the nine months ended September 30, 2008 was $1.0 billion, which included a $495 million increase in fuel derivative collateral deposits related to future periods, and capital expenditures were $765 million. The Company ended third quarter 2008 with $3.4 billion in cash and short-term investments, which included $2.5 billion in fuel derivative collateral deposits (with a corresponding liability recorded in Accrued Liabilities). Total operating revenues for the nine months ended September 30, 2008 increased 12.5 percent to $8.3 billion, while total operating expenses increased 18.0 percent to $7.9 billion, resulting in operating income of $380 million versus $664 million in 2007. Excluding special items, operating income was $487 million and $672 million, respectively, for the nine months ended September 30, 2008 and 2007. Net income for the nine months ended September 30, 2008 was $234 million, or $.32 per diluted share, compared to $533 million, or $.69 per diluted share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2008 was $233 million, or $.32 per diluted share, compared to $385 million, or $.49 per diluted share, for the same period last year. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements relating to (i) the Company's expectations regarding its future results of operations; (ii) its operating and financial strategies and the anticipated impacts of such strategies; (iii) its revenue and cost cutting initiatives and its expectations with respect to such initiatives; and (iv) its growth plans and expectations. These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the price and availability of aircraft fuel; (ii) uncertainties surrounding changing economic conditions, which are beyond the Company's control and are therefore difficult to predict and which can impact the demand for leisure and business travel and can also impact the Company's ability to overcome increased fuel and other costs; (iii) competitor capacity and load factors; (iv) the Company's ability to timely and effectively prioritize its revenue and cost reduction initiatives and its related ability to timely implement and maintain the necessary information technology systems and infrastructure to support these initiatives; (v) the impact of governmental regulations and inquiries on the Company's operating costs, as well as its operations generally; and (vi) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007.   ... 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Southwest Airlines Celebrates Surpassing the 10 Million Dollar Mark for Ronald McDonald House Charities DALLAS, Oct. 13 - Southwest Airlines celebrated today surpassing the 10 million dollar mark in fundraising over its 22 years of sponsoring and coordinating the LUV Classic golf tournament to benefit the Ronald McDonald House Charities (RMHC). Southwest Airlines Employees organize and staff two annual golf tournaments called the "LUV Classic", one in Phoenix and one in Dallas. All money raised benefits more than 50 Ronald McDonald Houses all over the nation in communities that Southwest serves. "The Ronald McDonald Houses are very special to Southwest Airlines. For 25 years, we have developed an extraordinary bond with their houses and residents," said Debra Benton, Director Community Relations and Charitable Giving for Southwest Airlines. "It all started with one Employee volunteering at a house to serve dinner and has grown to being Southwest's favored charity. We thank all the corporate partners and Employees that helped us surpass this milestone of 10 million dollars." Ronald McDonald House Charities create, find, and support programs that directly improve the health and well-being of children. "Southwest Airlines has been a wonderful supporter of RMHC and our Ronald McDonald House program for many years," said Marty Coyne, RMHC President and CEO. "Their commitment to us has been unwavering and we could not have asked for a better partner." For more than 37 years, Southwest Airlines has been committed to its Customers and Employees. The Employees of Southwest Airlines give generously from the heart to make a positive difference in their communities in their hour of need. http://www.southwest.com ... View more

Flying to College on the Cheap As Fares Rise, Students and Teachers Can Still Snare Deals By SCOTT MCCARTNEY Higher airfares have raised the cost of higher education, from trips home for college students at Thanksgiving to study-abroad semesters. But two little-known companies that negotiate big discounts with airlines can save hundreds of dollars for students and their ticket-buying parents. Even though airlines have piled on fees and eliminated most special discounts like senior-citizen fares and half-price tickets for young children, one vestige of airline goodwill remains. Several air carriers still offer special deals for students -- and teachers as well.   To read more, visit:  http://www.wsj.com/article/SB122393525342230309.html   Associated Press Northwestern University student Mollie Schoenwald looks through her bags before departing for a family gathering in Texas at O'Hare International Airport in November 2006. ... View more

Go Home For the Holidays! Great fares are available at southwest.com for travel November 4 through December 17, 2008. Book by October 16. 21-day advance purchase. Visit http://www.southwest.com/hotfares/hotfares_air.html?src=e101408 to find low fares.      ... View more

Earnings this Thursday Southwest will report its third quarter 2008 financial results Thursday morning, October 16.  In addition, CEO Gary Kelly and Senior Vice President Finance & CFO Laura Wright will participate in a live conference call with Wall Street analysts and members of the media that will be web cast on the Investor Relations page of southwest.com.  Instructions on how to call in to hear a replay of the conference call will be available on Thursday.   Check back here on Thursday for the results and webcast details.  ... View more

  In 2007 Southwest served: 64.9 million cans of soda, juices, and water 11.3 million alcoholic beverages 6.1 million bags of pretzels 103.8 million bags of peanuts 14 million snackpacks 32 million other snacks   ... View more

Winging It: Reader says Southwest has unfair edge By Tom Belden Readers of the previous column provided a couple of prize-winning responses, among the best I have received since I started this endeavor almost two years ago. I don't have the space to report on both today, so the second one will have to wait for next week. As you may recall, much of the column focused on Southwest Airlines' policy of not charging fees for services that once were included in ticket prices. We all know why fares and fees have shot up this year: Fuel costs were killing the carriers. Most airlines believed customers understood that and would accept "a la carte" pricing for checking bags, getting the best seats on flights and the rest. Southwest has the opposite opinion, believing that it can capture more business by appealing to travelers who don't want to pay the fees.   To read more, visit: http://tinyurl.com/4sr75u   ... View more

DOT Releases August 2008 Stats For the month of August, Southwest Airlines placed first in Consumer Complaints, fifth in Ontime Performance, and sixth in Baggage Handling.  The top performers in each category of the U.S. Department of Transportation’s Air Travel Consumer Report for August 2008 are listed below. August 2008 Complaints (per 100,000 Customers) 1. Southwest 0.22 2. Alaska  0.31 3. ExpressJet  0.41 4. Skywest  0.42 5. Pinnacle  0.57 6. Northwest  0.73 7. Frontier  0.79 8. Mesa  0.92 9. Continental  1.09 10. American  1.22 Ontime Performance (percent) 1. Hawaian  92.3 2. Pinnacle  89.6 3. Skywest  85.7 4. Northwest  85.3 5. Southwest  84.4 6. Frontier  82.9 7. US Airways  80.8 8. Alaska  78.7 9. American Eagle  78.5 10. Airtran  78.3 Baggage Handling (Per 1,000 Customers) 1. Hawaiian  2.89 2. Northwest  2.92 3. Airtran  3.01 4. Frontier  3.79 5. US Airways  4.09 6. Southwest  4.13 7. Continental  4.15 8. Alaska  4.30 9. JetBlue  4.36 10. American  5.20 The Air Travel Consumer Report can be viewed in full online at airconsumer.ost.dot.gov/reports/index.htm. ... View more

S&P Lowers its Credit Rating on Southwest There are three credit rating agencies—Moody’s, Standard & Poor’s (S&P), and Fitch—which regularly assess debt and credit risks.  S&P announced yesterday that they are lowering Southwest Airlines’ credit rating from A- to the next level, BBB+.  Their decision was based on volatile fuel prices and overall economic weakness impacting demand for domestic travel.  S&P also acknowledged that we have some cost pressures, and that the industry as a whole is struggling. The S&P rating is “stable,” which is positive—given what’s going on in the economy.  Southwest is still considered to be “investment grade” at a BBB+ rating, and we are currently the only investment grade airline.    ... View more

  Suddenly Frugal Seal of Approval: Southwest Airlines Thursday, October 9, 2008 As many of you know, from my blog postings and Twitter updates, late last week my mother was admitted to the hospital. That meant that in less than 24 hours from her initial emergency, I needed to get myself from Pennsylvania to Maine--and believe me, I was in no shape to make the eight-hour drive. Really, the only rational thing to do was to fly, so on Thursday I spend most of the afternoon trying to work that out.... ...It didn't take me too long to realize that my best bet was going to be turning to Southwest Airlines, one of my favorite airlines of all time--and where I should have gone in the first place. (Whenever I travel for business, I tell people to book me on Southwest first.) Yup, Southwest came through for me and in a way that didn't put a huge dent in my pocketbook. I was able to book one of their Business Select seats on a flight leaving first-thing Friday morning for $138. Yes, you read that right, one hundred and thirty eight dollars--and that's including all taxes. To read more, visit: http://suddenlyfrugal.blogspot.com/2008/10/suddenly-frugal-seal-of-approval.html ... View more

Southwest Airlines 'Freedom From Fees' Policy Helps Boost Its Share of Online Tickets Sold Directly by Major Airlines Less Than Forty Percent of Consumers Say They Are In Favor of 'A La Carte' Pricing Structure Majority of Consumers Deem Additional Travel Fees Unacceptable, According to comScore Study ComScore, Inc., a leader in measuring the digital world, today released the results of a study of online ticket sales at the U.S. sites of leading airlines as well as consumer attitudes toward airline fees. The study found that Southwest sells nearly 2.5 times the dollar volume of online tickets at its site as its nearest competitor. From the second quarter of 2007 through the same period in 2008, Southwest Airlines has expanded its leading share of online ticket sales made directly at airline sites by 4.8 points, according to comScore's passively-observed online behavioral data. While Southwest has long positioned itself as an economically priced airline, part of its growth in share coincides with the imposition of additional fees for services such as checking luggage and in-flight beverages charged by the majority of the competing suppliers. Meanwhile, Southwest Airlines has launched a marketing campaign promoting its "Freedom from Fees" policy.      To read more, visit:  http://www.marketwatch.com/news/story/southwest-airlines-freedom-fees-policy/story.aspx?guid=%7BC45AE3A1-F071-4FB2-A54D-A5EB0673EBCA%7D&dist=hppr ... View more

Southwest Rescues Twin Cities from Northwest Monopoly via Gadling by Josh Lew on 10/3/08   The Twin Cities have enjoyed fleeting affairs with budget airlines in the past. AirTran provided dirt cheap flights between MSP and Chicago (as low as $59 one-way) for several years. When they left, fares rose considerably. For many people flying out of Minnesota , Northwest is the only game in town. A search on the major booking web sites last week turned up fares of over $500 between MSP and O'Hare. In short, Northwest has travelers trapped in a corner and seems intent on extracting as much money. Sporadic service by budget carriers like Sun Country has done little to alter the trend of high prices. But a deal between Twin Cities Int'l and Southwest Airlines will bring some significant change to the air travel market next year. To read more, visit:  http://www.gadling.com/2008/10/03/southwest-airlines-rescues-twin-cities-from-northwest-monopoly/ ... View more

Southwest Airlines' Gary Kelly Named Texas Public Schools 'Friend of the Year' DALLAS, Oct. 7 -- Gary Kelly, Chairman of the Board, President, & Chief Executive Officer, exemplifies a corporate leader who personally and professionally supports public education in Texas. For this, the Friends of Texas Public Schools is honoring him as its 4th Annual Texas Public Schools Friend of the Year. "We are proud to recognize Mr. Kelly's legacy of commitment to, and support of, public education in Texas. His efforts represent the positive energy we believe is so desperately needed in our public schools," said Scott Milder, President and CEO of Friends of Texas Public Schools. Mr. Kelly enthusiastically accepted the honor and invitation to attend a reception that will celebrate his contributions to public education, as well as the collective achievements of Texas public school educators and students. The reception is scheduled for Thursday, November 13th, 5:30 p.m. to 7:30 p.m. at the Frontiers of Flight Museum in Dallas. For more details, table sponsorship information or ticket sales please contact Brandie Cleaver at brandie@fotps.org. "As a product of Texas public schools, I am honored to be recognized by an organization devoted to celebrating the good things that are happening in public education," Mr. Kelly said. "This is also a tribute to the People of Southwest Airlines who volunteer their time and energy to making a positive difference in children's lives." The Friend of the Year Award was established to honor those rare individuals in the private sector who clearly see beyond the sensational headlines, and often negative politics, and understand that the success of Texas public education is everyone's business. "Like past honorees Tom Frost of Frost Bank, Charles Butt of H-E-B, and Michael Boone of Haynes & Boone, Mr. Kelly recognizes that true motivation for students and educators lies not with heavy handed and harsh criticism, but rather in hope, optimism and encouragement," says Mr. Milder. Throughout his life Mr. Kelly has exhibited a strong commitment to public education. In addition to supporting employee volunteer efforts and numerous educational organizations, he is an advocate for the Adopt-A-Pilot program, sponsored by Southwest Airlines. Each spring, more than 20,000 fifth grade students participate in this mentoring program that teaches them to set and reach goals. His wife, Carol, is a former public school teacher, and his daughter, Elizabeth, is a fourth grade teacher in Plano. The mission of Friends of Texas Public Schools is to educate Texans about the strengths and achievements of Texas public schools. To make a donation or for more information, visit http://www.fotps.org. After 37 years of service, Southwest Airlines, the nation's leading low-fare carrier, continues to stand above other airlines -- offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom. Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3, 400 flights a day and has more than 34,000 Employees systemwide. CONTACT: Scott Milder, President, +1-214-497-6411, smilder@fotps.org, or Brandie Cleaver, +1-254-291-4623, brandie@fotps.org, both of Friends of Texas Public Schools ... View more

Southwest says it's positioned to weather economic storm By TREBOR BANSTETTER tbanstetter@star-telegram.com DALLAS — Southwest Airlines is positioned to weather the financial storm that has enveloped Wall Street in recent weeks, but concerns remain about problems with the nation’s overall economy, company officials said Wednesday. Laura Wright, chief financial officer of the Dallas-based discount airline, told reporters Wednesday that the company does not have significant exposure to the problems with the nation’s financial system. "Credit markets are certainly ugly right now," she said, "but we’re in a good position for these turbulent times." To read more, visit: http://www.star-telegram.com/business/v-print/story/947075.html ... View more

Southwest Airlines: In a Category of It’s Own I had a ringside seat last week to many of the inner workings at Southwest Airlines when I was invited - along with a bunch of other journalists - to the airline’s media day. No matter how many times I interact with Southwest employees, they continue to amaze me. And apparently they amaze quite a few other folks too because Southwest’s Nuts About Southwest blog won Best Corporate Blog of the Year from PR News this week. I cut my flying teeth at a more traditional airline and in a number of corporate flight departments. As a chronicler of the aviation industry these days, I, like the rest of the media actually, see myself as one of those eternal critics of the world. Honestly I have for years been wondering how the people at Southwest Airlines could possibly keep this different kind of airline running year after year and make money each year as well. And this airline is different in many ways, from their focus on low-costs to their never ending need to find that happy balance between costs and delivering a service that keeps passengers coming back.   To read more, visit: http://www.jetwhine.com/2008/10/southwest-airlines-in-a-category-of-its-own/   ... View more

12:56 PM CDT on Sunday, October 5, 2008 By TERRY MAXON / The Dallas Morning News tmaxon@dallasnews.com Southwest Airlines is counting on some angry customers in the coming months – passengers flying on other U.S. airlines. The Dallas-based carrier is making a big deal about its no-fees policy so that customers remember the message the first time they get socked with fees on other airlines. Southwest executive Dave Ridley says a lot of people, for example, may get a nasty surprise on their Thanksgiving trips when they find they'll have to pay $230 in baggage fees to get on another carrier's flight. To read more, visit: http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/DN-p2startup_05bus.ART.State.Edition1.26ebba1.html ... View more

  According to past annual reports, we have decreased our available seat miles (ASM) only twice in our history.  Once, from 1972 to 1973 and again, ever so slightly, from 1987 to 1988. 1972 - 263,808 1973 - 260,616 Decrease of 1.2 percent 1987 - 13,331,055 1988 - 13,309,044 Essentially flat, but literallly a decrease of .1 percent Otherwise, we have always had a year-over-year increase in ASM capacity. ... View more

Southwest is the official airline of Kidd’s Kids, a nationally syndicated radio personality’s charity.  For those of you who don’t listen to Kidd Kraddick’s show, Kidd’s Kids takes more than 40 families with terminally and chronically ill children to Disney World every year.  The families come from across our system for an unforgettable memory.  Southwest Employees assist the charity by manning a telethon for donations.  To learn more or make an online donation, visit http://kiddskids.com/get-involved.html. ... View more

Southwest Airlines tops Forbes’ list of America’s most reliable airlines.  Forbes says that we “handily beat” the competition in a majority of the six categories judged, which included:  ontime arrival, cancellations, complaints, mishandled baggage, J.D. Power and Associates’ consumer satisfaction rankings, and asset-to-liability ratio.  Second place went to Continental, and third went to JetBlue.  US Airways and United tied for last place. To read more, visit: http://www.forbes.com/lifestyle/2008/09/30/airlines-reliable-ten-forbeslife-cx_rr_0930travel.html ... View more

As announced yesterday, Southwest Airlines will begin service to Minneapolis/St. Paul in March 2009.  Here are a few questions and answers that may be on your mind regarding our 65th city.   Q: Why did we choose MSP? A: Our Schedule Planning Department, in conjunction with Southwest Airlines Leadership, saw an opportunity to strategically expand Southwest’s route map.   Q: When will we announce routes and fares? A: We plan to release frequency, fares, and start date later this fall.  For now, we are planning a modest opening in MSP with initial service to MDW this spring.   Q: What does this mean for our 2009 growth? A: Presently, we intend to grow our 2009 fleet by no more than ten Boeing 737-700 aircraft.  We recently deferred four aircraft scheduled for delivery from Boeing in 2009 to 2016.  But it is likely that we will not grow our available seat miles in 2009.  We are thankful to have flexibility with our schedules because we can choose when and what quantity of aircraft to retire.  We also are empowered with new schedule planning tools which give us the ability to adjust our flight schedules in order to best utilize the aircraft that we have.   Q: So if our growth is flat in 2009, does this mean we’re taking away other flights? A: We need to place our aircraft on the routes where they can be most productive and most profitable so it is always possible that unproductive flights may be cut.  However, with the optimized Schedule Planning tools as well as the advantage of the decreased flying time due to summer winds, we may be able to add flights, while keeping growth flat.   Q: Was this decision made because of the possible Delta/Northwest merger? A: No.  We’ve been interested in MSP for a long time.  The strategic implications of adding MSP have been studied for quite some time.  In this situation, we wanted to be able to take advantage of an opportunity and act quickly.   Q: Why are we starting with such a modest opening? A: In this volatile economic environment with high fuel prices, we want to avoid unnecessary risk.  We are planning a modest opening with great connection to our robust MDW network.  The MSP market will provide an excellent complement to our existing route map.   Q: How do MSP airport costs compare to other Southwest cities? A: Airport costs at the Minneapolis/St. Paul International Airport are in line with other airports we serve.   ... View more

Carrier Plans Modest Start-Up with Flights to Chicago Midway in March 2009   DALLAS—Oct. 1, 2008—Southwest Airlines today announced its intent to begin service from Minneapolis-St. Paul International Airport (MSP) in March 2009.  The carrier has not released specific service details, saying only that it will begin a modest operation at MSP with flights to Chicago Midway only.    "Minneapolis-St. Paul’s geographic location complements the vast Southwest Airlines network really well,” said Gary Kelly, Southwest’s Chairman of the Board, President, and CEO.  “We have studied and been interested in serving this very popular market for quite some time, and we look forward to bringing our low fares and legendary Customer Service to the people of Minnesota.  “Presently, we intend to grow our 2009 fleet by no more than ten Boeing 737-700 aircraft.  We recently deferred four aircraft scheduled for delivery from Boeing in 2009 to 2016.  While it is very likely we will not grow our available seat miles in 2009, our new schedule optimization tools allow us to better manage our fleet and adjust our flight schedule to take advantage of great opportunities such as Minneapolis-St. Paul," Kelly said.  The Company plans to release more details of its future service to Minneapolis-St. Paul in the coming months. "One of the most frequent questions I have been asked over the years is, 'When is Southwest Airlines coming to Minneapolis-St. Paul International Airport?'  Today, I can finally give people the answer we have been working toward: 'Very, very soon.’  I am confident Southwest will receive overwhelming community support for its new service to the Twin Cities,” said Executive Director of Metropolitan Airport Commission Jeff Hamiel.  “The Metropolitan Airports Commission stands ready to assist the airline in establishing and growing service to Minnesota.”  To view a blog post on this news, visit: http://www.blogsouthwest.com/blog/youre-gonna-make-it-after-all.  To visit Southwest’s web site, visit: http://www.southwest.com/?src=PRPRPRNGENR000000080808. After 37 years of service, Southwest Airlines, the nation’s leading low-fare carrier, continues to stand above other airlines—offering a reliable product with exemplary Customer Service with no hidden fees.  Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines even more convenient.  Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states.  Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide.   www.southwest.com     ... View more

Southwest Airlines Offers Business Select and A-List Customers the Chance to “Fly By” Security DALLAS—Oct. 1, 2008— Southwest Airlines will soon introduce priority security lane access for its Business Select and Rapid Reward A-List Customers at select airports. Later this month, the airline will implement the lanes branded “Fly By” at the following locations: Baltimore/Washington International, Dallas Love Field, Phoenix Sky Harbor International, Orange County John Wayne, Denver International, San Francisco International, and Los Angeles International. Southwest plans to add additional airports to the Fly By rollout starting in November 2008, continuing to implement the priority security lane program throughout its system on an airport by airport basis.  Please visit www.blogsouthwest.com for additional Fly By information or to leave a comment. “We believe that our Customers will appreciate the added benefit priority security lanes will provide,” said Kevin Krone Vice President Marketing, Sales and Distribution. “Expediting passengers through security is just one example of how Southwest is enhancing the Customer experience by offering added convenience for seasoned travelers.” Southwest Customers can take advantage of Southwest’s Fly By Security Lanes by presenting an A-List identification card or by presenting a Business Select boarding pass. Southwest’s Business Select fare provides the same flexibility as our current Refundable Fares, and comes with other added perks, including priority boarding, bonus Rapid Rewards credit, and one complimentary adult beverage (for Customers of legal drinking age).  Business Select Fares are refundable and changeable. A-List status applies to Rapid Rewards Members who fly 16 qualifying roundtrips in 12 months. Rapid Reward A-List Customers also receive priority boarding privileges and automatic checkin.  After almost 37 years of service, Southwest Airlines continues to differentiate itself from other airlines—offering low fares and a reliable product with impeccable Customer Service. Southwest Airlines is the most efficient airline in the sky and offers Customers a pleasant traveling experience.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest productive and convenient. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers boarded, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,300 flights a day and has more than 33,000 Employees systemwide. www.southwest.com   ... View more

There was an interesting little surprise last Friday when Southwest revealed on FlyerTalk that it was rolling out what is effectively elite security lines for its best customers. I think I like this move since it’s squarely targeting the business traveler, even if it does go against Southwest’s egalitarian history. To read more, visit: http://crankyflier.com/2008/09/29/southwest-introduces-fly-by-security-lanes/. ... View more

By JOSHUA FREED, Associated Press September 29, 2008 Air fares are up, right? The short answer is yes _ 22 fare increases this year. But fares in some cities are flat or even down, as fierce competition keeps airlines from charging as much as they would like. Business fares in early September were down 5 percent in Phoenix and 4 percent in New York compared to the same week last year, according to research by Bob Harrell of Harrell Associates, who tracks airfares. In many other cities ticket prices were up only marginally _ 1 percent in Orlando, 3 percent in Atlanta, 4 percent in Denver and Las Vegas.   To read more, visit: http://www.businessweek.com/ap/financialnews/D93FTP600.htm ... View more

BY MARY FRANCIS MASSON • FREE PRESS BUSINESS WRITER • September 28, 2008 As jet fuel prices sent airlines on a stomach-churning ride, spurring new fees and higher prices, Southwest Airlines customers have had a smoother trip. Southwest, the second-biggest carrier at Detroit Metro's new North Terminal, took a gamble on fuel purchasing that has paid off for consumers. It's been able to keep fare increases much lower than those of most carriers because it locked in jet fuel prices before crude oil skyrocketed to almost $150 a barrel earlier this year. That protection is likely to wear off a bit in 2009, but many analysts say the Dallas-based airline's strong financial position will allow it to remain one of the cheapest deals for travelers.   To read more, visit: http://www.freep.com/apps/pbcs.dll/article?AID=/20080928/BUSINESS05/809280454   ... View more

  One of our Dallas-based Flight Attendants is a finalist in D Magazine's "Ten Most Beautiful Women in Dallas” contest!  Congratulations, Allison! To learn more about Allison Moran (and vote for her, of course!), visit:  http://www.dmagazine.com/10MB2008/10MB_AllisonMoran.asp   ... View more

Today's Daily Candy features some swanky travel accessories.  Check 'em out at:  http://www.dailycandy.com/travel/article/39078/Seat+Envy ... View more