Southwest Airlines Co.
Industry: Airline

More than 30 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. Southwest Airlines has become the fourth largest major airline in America. We fly more than 64 million passengers a year to 58 great cities (59 airports) all over the Southwest and beyond. And we do it more than 2,700 times a day.

Business Summary
Southwest Airlines Co. (Southwest) is a domestic airline that provides shorthaul, longhaul, high-frequency, point-to-point, low-fare service. During the year ended December 31, 2004, the Company operated 417 Boeing 737 aircraft and provided service to 60 airports in 59 cities in 31 states throughout the United States. Southwest began service to Philadelphia in May 2004, and announced the starting of the service in Pittsburgh in May 2005. During 2004, the Company closed its Dallas, Salt Lake City and Little Rock reservations centers. At December 31, 2004, the Company operated six reservation centers.

Financial Summary
For the nine months ended 30 September 2005, Southwest Airlines Company's total operating revenues increased 15% to $5.60B. Net income for the period increased 79% to $462M. Revenues benefitted from increased passengers carried and higher average passenger fares. Net income also reflects a better absorption of labor costs and lower maintenance and repair costs and the inclusion of $112M in unrealized gains vs. $16M in losses.