þ
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended June 30,
2008
|
|
or
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ________ to
________
|
TEXAS
|
74-1563240
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
P.O.
Box 36611, Dallas, Texas
|
75235-1611
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Number of shares of Common Stock
outstanding as of the close of business on July 23, 2008:
733,931,937
|
|
June
30, 2008
|
December
31, 2007
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 4,653 | $ | 2,213 | ||||
Short-term
investments
|
1,185 | 566 | ||||||
Accounts
and other receivables
|
447 | 279 | ||||||
Inventories
of parts and supplies, at cost
|
301 | 259 | ||||||
Fuel
derivative contracts
|
2,278 | 1,069 | ||||||
Prepaid
expenses and other current assets
|
65 | 57 | ||||||
Total
current assets
|
8,929 | 4,443 | ||||||
Property
and equipment, at cost:
|
||||||||
Flight
equipment
|
13,714 | 13,019 | ||||||
Ground
property and equipment
|
1,591 | 1,515 | ||||||
Deposits
on flight equipment purchase contracts
|
416 | 626 | ||||||
15,721 | 15,160 | |||||||
Less
allowance for depreciation and amortization
|
4,551 | 4,286 | ||||||
11,170 | 10,874 | |||||||
Other
assets
|
3,163 | 1,455 | ||||||
$ | 23,262 | $ | 16,772 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 903 | $ | 759 | ||||
Accrued
liabilities
|
6,097 | 3,107 | ||||||
Air
traffic liability
|
1,303 | 931 | ||||||
Current
maturities of long-term debt
|
71 | 41 | ||||||
Total
current liabilities
|
8,374 | 4,838 | ||||||
Long-term
debt less current maturities
|
2,590 | 2,050 | ||||||
Deferred
income taxes
|
3,193 | 2,535 | ||||||
Deferred
gains from sale and leaseback of aircraft
|
100 | 106 | ||||||
Other
deferred liabilities
|
275 | 302 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock
|
808 | 808 | ||||||
Capital
in excess of par value
|
1,216 | 1,207 | ||||||
Retained
earnings
|
5,123 | 4,788 | ||||||
Accumulated
other comprehensive income
|
2,699 | 1,241 | ||||||
Treasury
stock, at cost
|
(1,116 | ) | (1,103 | ) | ||||
Total
stockholders' equity
|
8,730 | 6,941 | ||||||
$ | 23,262 | $ | 16,772 | |||||
See
accompanying notes.
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
OPERATING
REVENUES:
|
||||||||||||||||
Passenger
|
$ | 2,747 | $ | 2,475 | $ | 5,161 | $ | 4,587 | ||||||||
Freight
|
37 | 33 | 71 | 63 | ||||||||||||
Other
|
85 | 75 | 167 | 131 | ||||||||||||
Total
operating revenues
|
2,869 | 2,583 | 5,399 | 4,781 | ||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
Salaries,
wages, and benefits
|
839 | 814 | 1,639 | 1,581 | ||||||||||||
Fuel
and oil
|
894 | 607 | 1,647 | 1,171 | ||||||||||||
Maintenance
materials and repairs
|
191 | 154 | 333 | 291 | ||||||||||||
Aircraft
rentals
|
38 | 40 | 76 | 79 | ||||||||||||
Landing
fees and other rentals
|
159 | 140 | 330 | 276 | ||||||||||||
Depreciation
and amortization
|
148 | 137 | 293 | 272 | ||||||||||||
Other
operating expenses
|
395 | 363 | 788 | 699 | ||||||||||||
Total
operating expenses
|
2,664 | 2,255 | 5,106 | 4,369 | ||||||||||||
OPERATING
INCOME
|
205 | 328 | 293 | 412 | ||||||||||||
OTHER
EXPENSES (INCOME):
|
||||||||||||||||
Interest
expense
|
32 | 29 | 60 | 58 | ||||||||||||
Capitalized
interest
|
(6 | ) | (14 | ) | (14 | ) | (27 | ) | ||||||||
Interest
income
|
(5 | ) | (14 | ) | (12 | ) | (27 | ) | ||||||||
Other
(gains) losses, net
|
(345 | ) | (120 | ) | (307 | ) | (188 | ) | ||||||||
Total
other expenses (income)
|
(324 | ) | (119 | ) | (273 | ) | (184 | ) | ||||||||
INCOME
BEFORE INCOME TAXES
|
529 | 447 | 566 | 596 | ||||||||||||
PROVISION
FOR INCOME TAXES
|
208 | 169 | 211 | 225 | ||||||||||||
NET
INCOME
|
$ | 321 | $ | 278 | $ | 355 | $ | 371 | ||||||||
NET
INCOME PER SHARE, BASIC
|
$ .44 | $ .36 | $ .48 | $ .48 | ||||||||||||
NET
INCOME PER SHARE, DILUTED
|
$ .44 | $ .36 | $ .48 | $ .47 | ||||||||||||
WEIGHTED
AVERAGE SHARES
|
||||||||||||||||
OUTSTANDING:
|
||||||||||||||||
Basic
|
732 | 769 | 733 | 778 | ||||||||||||
Diluted
|
737 | 780 | 736 | 790 | ||||||||||||
See
accompanying notes.
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
NUMERATOR:
|
||||||||||||||||
Net
income
|
$ | 321 | $ | 278 | $ | 355 | $ | 371 | ||||||||
DENOMINATOR:
|
||||||||||||||||
Weighted-average
shares
|
||||||||||||||||
outstanding,
basic
|
732 | 769 | 733 | 778 | ||||||||||||
Dilutive
effect of Employee stock
|
||||||||||||||||
options
|
5 | 11 | 3 | 12 | ||||||||||||
Adjusted
weighted-average shares
|
||||||||||||||||
outstanding,
diluted
|
737 | 780 | 736 | 790 | ||||||||||||
NET
INCOME PER SHARE:
|
||||||||||||||||
Basic
|
$ .44 | $ .36 | $ .48 | $ .48 | ||||||||||||
Diluted
|
$ .44 | $ .36 | $ .48 | $ .47 |
Three
months ended June 30,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Fuel
hedge (gains) included in Fuel and oil expense
|
$ | (474 | ) | $ | (173 | ) | ||
Mark-to-market
impact from fuel contracts settling in future
|
||||||||
periods
- included in Other (gains) losses, net
|
(369 | ) | (129 | ) | ||||
Ineffectiveness
from fuel hedges settling in future periods -
|
||||||||
included
in Other (gains) losses, net
|
14 | 4 | ||||||
Realized
ineffectiveness and mark-to-market (gains) or
|
||||||||
losses
- included in Other (gains) losses, net
|
(6 | ) | (9 | ) | ||||
Premium
cost of fuel contracts included in Other (gains) losses,
net
|
14 | 14 |
Six
months ended June 30,
|
||||||
(In
millions)
|
2008
|
2007
|
||||
Fuel
hedge (gains) included in Fuel and oil expense
|
$ |
(766)
|
$ |
(251
|
)
|
|
Mark-to-market
impact from fuel contracts settling in future
|
||||||
periods
- included in Other (gains) losses, net
|
(373)
|
(200
|
)
|
|||
Ineffectiveness
from fuel hedges settling in future periods -
|
||||||
included
in Other (gains) losses, net
|
19
|
9
|
||||
Realized
ineffectiveness and mark-to-market (gains) or
|
||||||
losses
- included in Other (gains) losses, net
|
17
|
(26
|
)
|
|||
Premium
cost of fuel contracts included in Other (gains) losses,
net
|
27
|
29
|
June
30,
|
December
31,
|
|||||
(In
millions)
|
2008
|
2007
|
||||
Fair
value of current fuel contracts (Fuel derivative
contracts)
|
$ | 2,278 | $ | 1,069 | ||
Fair
value of noncurrent fuel contracts (Other assets)
|
2,834 | 1,318 | ||||
Due
from third parties for settled fuel contracts (Accounts
|
||||||
and
other receivables)
|
194 | 109 | ||||
Net
unrealized gains from fuel hedges, net of tax (Accumulated
|
||||||
other
comprehensive income)
|
2,689 | 1,220 |
Three
months ended June 30,
|
|||||||||
(In
millions)
|
2008
|
2007
|
|||||||
Net
income
|
$ | 321 | $ | 278 | |||||
Unrealized
gain (loss) on derivative instruments,
|
|||||||||
net
of deferred taxes of $753 and $22
|
1,209 | 35 | |||||||
Other,
net of deferred taxes of ($1) and $1
|
(2 | ) | 1 | ||||||
Total
other comprehensive income
|
1,207 | 36 | |||||||
Comprehensive
income
|
$ | 1,528 | $ | 314 | |||||
Six
months ended June 30,
|
|||||||||
(In
millions)
|
2008
|
2007
|
|||||||
Net
income
|
$ | 355 | $ | 371 | |||||
Unrealized
gain (loss) on derivative instruments,
|
|||||||||
net
of deferred taxes of $904 and $105
|
1,469 | 170 | |||||||
Other,
net of deferred taxes of ($7) and $0
|
(11 | ) | - | ||||||
Total
other comprehensive income (loss)
|
1,458 | 170 | |||||||
Comprehensive
income
|
$ | 1,813 | $ | 541 |
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In
millions)
|
derivatives
|
Other
|
income
(loss)
|
|||||||||
Balance
at March 31, 2008
|
$ | 1,480 | $ | 12 | $ | 1,492 | ||||||
Second
quarter 2008 changes in value
|
1,493 | (2 | ) | 1,491 | ||||||||
Reclassification
to earnings
|
(284 | ) | - | (284 | ) | |||||||
Balance
at June 30, 2008
|
$ | 2,689 | $ | 10 | $ | 2,699 | ||||||
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In
millions)
|
derivatives
|
Other
|
income
(loss)
|
|||||||||
Balance
at December 31, 2007
|
$ | 1,220 | $ | 21 | $ | 1,241 | ||||||
2008
changes in value
|
1,923 | (11 | ) | 1,912 | ||||||||
Reclassification
to earnings
|
(454 | ) | - | (454 | ) | |||||||
Balance
at June 30, 2008
|
$ | 2,689 | $ | 10 | $ | 2,699 |
June
30,
|
December
31,
|
|||||||
(In
millions)
|
2008
|
2007
|
||||||
Noncurrent
fuel hedge contracts, at fair value
|
$ | 2,834 | $ | 1,318 | ||||
Auction
rate securities
|
172 | - | ||||||
Other
|
157 | 137 | ||||||
Other
assets
|
$ | 3,163 | $ | 1,455 |
June
30,
|
December
31,
|
|||||||
(In
millions)
|
2008
|
2007
|
||||||
Retirement
Plans
|
$ | 178 | $ | 132 | ||||
Aircraft
Rentals
|
115 | 125 | ||||||
Vacation
Pay
|
171 | 164 | ||||||
Advances
and deposits
|
4,454 | 2,020 | ||||||
Deferred
income taxes
|
739 | 370 | ||||||
Other
Accrued Benefit
|
164 | 132 | ||||||
Other
|
276 | 164 | ||||||
Accrued
liabilities
|
$ | 6,097 | $ | 3,107 |
Three
months ended June 30,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Service
cost
|
$ | 4 | $ | 3 | ||||
Interest
cost
|
1 | 2 | ||||||
Amortization
of prior service cost
|
1 | 1 | ||||||
Recognized
actuarial gain
|
(1 | ) | - | |||||
Net
periodic postretirement benefit cost
|
$ | 5 | $ | 6 | ||||
Six
months ended June 30,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Service
cost
|
$ | 7 | $ | 7 | ||||
Interest
cost
|
2 | 3 | ||||||
Amortization
of prior service cost
|
1 | 1 | ||||||
Recognized
actuarial gain
|
(1 | ) | - | |||||
Net
periodic postretirement benefit cost
|
$ | 9 | $ | 11 |
Fair Value
Measurements at Reporting Date Using
|
||||||||||||||||
Quoted
Prices in
|
Significant
|
|||||||||||||||
Active
Markets for
|
Significant
Other
|
Unobservable
|
||||||||||||||
(in
millions)
|
Identical
Assets
|
Observable
Inputs
|
Inputs
|
|||||||||||||
Description
|
June 30,
2008
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
||||||||||||
Cash
equivalents
|
$ | 4,653 | $ | 4,653 | $ | - | $ | - | ||||||||
Short-term
investments
|
1,185 | 1,089 | - | 96 | ||||||||||||
Noncurrent
investments
|
172 | - | - | 172 | ||||||||||||
Interest
Rate Derivatives
|
20 | - | 20 | - | ||||||||||||
Fuel
Derivatives
|
5,125 | - | 1,795 | 3,330 | ||||||||||||
Other
Available-for-sale Securities
|
33 | 24 | - | 9 | ||||||||||||
Total
assets measured at fair value
|
$ | 11,188 | $ | 5,766 | $ | 1,815 | $ | 3,607 |
Three
months ended June 30,
|
||||||||||||
2008
|
2007
|
Change
|
||||||||||
Revenue
passengers carried
|
23,993,342 | 23,442,019 | 2.4 | % | ||||||||
Enplaned
passengers
|
27,550,957 | 26,889,424 | 2.5 | % | ||||||||
Revenue
passenger miles (RPMs) (000s)
|
19,811,541 | 19,018,769 | 4.2 | % | ||||||||
Available
seat miles (ASMs) (000s)
|
26,335,085 | 24,982,676 | 5.4 | % | ||||||||
Load
factor
|
75.2 | % | 76.1 | % |
(.9)
|
pts. | ||||||
Average
length of passenger haul (miles)
|
826 | 811 | 1.8 | % | ||||||||
Average
aircraft stage length (miles)
|
636 | 630 | 1.0 | % | ||||||||
Trips
flown
|
303,432 | 290,647 | 4.4 | % | ||||||||
Average
passenger fare
|
$114.48 | $105.60 | 8.4 | % | ||||||||
Passenger
revenue yield per RPM (cents)
|
13.86 | 13.02 | 6.5 | % | ||||||||
Operating
revenue yield per ASM (cents)
|
10.89 | 10.34 | 5.3 | % | ||||||||
Operating
expenses per ASM (cents)
|
10.12 | 9.03 | 12.1 | % | ||||||||
Fuel
costs per gallon, excluding fuel tax
|
$2.29 | $1.61 | 42.2 | % | ||||||||
Fuel
consumed, in gallons (millions)
|
388 | 374 | 3.7 | % | ||||||||
Full-time
equivalent Employees at period-end
|
34,027 | 33,261 | 2.3 | % | ||||||||
Size
of fleet at period-end
|
535 | 500 | 7.0 | % |
Six
months ended June 30,
|
||||||||||||
2008
|
2007
|
Change
|
||||||||||
Revenue
passengers carried
|
45,498,163 | 43,402,952 | 4.8 | % | ||||||||
Enplaned
passengers
|
52,259,572 | 49,792,497 | 5.0 | % | ||||||||
Revenue
passenger miles (RPMs) (000s)
|
37,403,700 | 35,127,840 | 6.5 | % | ||||||||
Available
seat miles (ASMs) (000s)
|
51,528,522 | 48,661,051 | 5.9 | % | ||||||||
Load
factor
|
72.6 | % | 72.2 | % |
.4
|
pts. | ||||||
Average
length of passenger haul (miles)
|
822 | 809 | 1.6 | % | ||||||||
Average
aircraft stage length (miles)
|
632 | 628 | 0.6 | % | ||||||||
Trips
flown
|
598,222 | 567,547 | 5.4 | % | ||||||||
Average
passenger fare
|
$113.42 | $105.68 | 7.3 | % | ||||||||
Passenger
revenue yield per RPM (cents)
|
13.80 | 13.06 | 5.7 | % | ||||||||
Operating
revenue yield per ASM (cents)
|
10.48 | 9.82 | 6.7 | % | ||||||||
Operating
expenses per ASM (cents)
|
9.91 | 8.98 | 10.4 | % | ||||||||
Fuel
costs per gallon, excluding fuel tax
|
$2.15 | $1.61 | 33.5 | % | ||||||||
Fuel
consumed, in gallons (millions)
|
761 | 726 | 4.8 | % | ||||||||
Full-time
equivalent Employees at period-end
|
34,027 | 33,261 | 2.3 | % | ||||||||
Size
of fleet at period-end
|
535 | 500 | 7.0 | % |
Three
months ended June 30,
|
Per
ASM
|
Percent
|
||||||||||||||
2008
|
2007
|
Change
|
Change
|
|||||||||||||
Salaries,
wages, and benefits
|
3.19 | 3.26 | (.07 | ) | (2.1 | ) | ||||||||||
Fuel
and oil
|
3.40 | 2.43 | .97 | 39.9 | ||||||||||||
Maintenance
materials
|
||||||||||||||||
and
repairs
|
.73 | .62 | .11 | 17.7 | ||||||||||||
Aircraft
rentals
|
.14 | .16 | (.02 | ) | (12.5 | ) | ||||||||||
Landing
fees and other rentals
|
.60 | .56 | .04 | 7.1 | ||||||||||||
Depreciation
|
.56 | .55 | .01 | 1.8 | ||||||||||||
Other
operating expenses
|
1.50 | 1.45 | .05 | 3.4 | ||||||||||||
Total
|
10.12 | 9.03 | 1.09 | 12.1 |
Three
months ended June 30,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Mark-to-market
impact from fuel contracts settling in future
|
||||||||
periods
- included in Other (gains) losses, net
|
$ | (369 | ) | $ | (129 | ) | ||
Ineffectiveness
from fuel hedges settling in future periods -
|
||||||||
included
in Other (gains) losses, net
|
14 | 4 | ||||||
Realized
ineffectiveness and mark-to-market (gains) or
|
||||||||
losses
- included in Other (gains) losses, net
|
(6 | ) | (9 | ) | ||||
Premium
cost of fuel contracts included in Other (gains) losses,
net
|
14 | 14 | ||||||
Other
|
2 | - | ||||||
$ | (345 | ) | $ | (120 | ) |
Six months ended June 30, |
Per
ASM
|
Percent
|
||||||||||||||
2008
|
2007
|
Change
|
Change
|
|||||||||||||
Salaries,
wages, and benefits
|
3.18 | 3.25 | (.07 | ) | (2.2 | ) | ||||||||||
Fuel
and oil
|
3.20 | 2.41 | .79 | 32.8 | ||||||||||||
Maintenance
materials
|
||||||||||||||||
and
repairs
|
.65 | .60 | .05 | 8.3 | ||||||||||||
Aircraft
rentals
|
.15 | .16 | (.01 | ) | (6.3 | ) | ||||||||||
Landing
fees and other rentals
|
.64 | .57 | .07 | 12.3 | ||||||||||||
Depreciation
|
.57 | .56 | .01 | 1.8 | ||||||||||||
Other
operating expenses
|
1.52 | 1.43 | .09 | 6.3 | ||||||||||||
Total
|
9.91 | 8.98 | .93 | 10.4 |
Six
months ended June 30,
|
||||||||
(In
millions)
|
2008
|
2007
|
||||||
Mark-to-market
impact from fuel contracts settling in future
|
||||||||
periods
- included in Other (gains) losses, net
|
$ | (373 | ) | $ | (200 | ) | ||
Ineffectiveness
from fuel hedges settling in future periods -
|
||||||||
included
in Other (gains) losses, net
|
19 | 9 | ||||||
Realized
ineffectiveness and mark-to-market (gains) or
|
||||||||
losses
- included in Other (gains) losses, net
|
17 | (26 | ) | |||||
Premium
cost of fuel contracts included in Other (gains) losses,
net
|
27 | 29 | ||||||
Other
|
3 | - | ||||||
$ | (307 | ) | $ | (188 | ) |
Average
|
Number
|
Number
|
Number
|
|||||||||||||||||||
737
Type
|
Seats
|
Age
(Yrs)
|
of
Aircraft
|
Owned
|
Leased
|
|||||||||||||||||
-300
|
137
|
17.0
|
188
|
112
|
76
|
|||||||||||||||||
-500
|
122
|
17.2
|
25
|
16
|
9
|
|||||||||||||||||
-700
|
137
|
4.9
|
322
|
318
|
4
|
|||||||||||||||||
TOTALS
|
9.7
|
535
|
446
|
89
|
(i)
|
the
price and availability of aircraft fuel and the Company’s ability to
overcome increased fuel costs through fare increases or other revenue
initiatives;
|
(ii)
|
the
Company’s ability to timely and effectively prioritize its revenue and
cost reduction initiatives and its related ability to timely and
effectively implement, transition, and maintain the necessary information
technology systems and infrastructure to support these
initiatives;
|
(iii)
|
the
extent and timing of the Company’s investment of incremental operating
expenses and capital expenditures to develop and implement its initiatives
and its corresponding ability to effectively control its operating
expenses;
|
(iv)
|
the
Company’s dependence on third party arrangements to assist with
implementation of certain of its
initiatives;
|
(v)
|
the
impact of governmental regulations and inquiries on the Company’s
operating costs, as well as its operations generally, and the impact of
developments affecting the Company’s outstanding litigation and other
claims against the Company;
|
(vi)
|
the
impact of certain pending technological initiatives on the Company’s
technology infrastructure, including its point of sale, ticketing, revenue
accounting, payroll and financial reporting
areas;
|
(vii)
|
competitor
capacity and load factors;
|
(viii)
|
the
Company’s ability to obtain financing on acceptable terms, and other
uncertainties created by the current instability of the credit markets;
and
|
(ix)
|
other
factors as set forth 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
year ended December 31, 2007.
|
Director
|
Votes
For
|
Votes
Withheld
|
Broker
Non-Votes
|
|||||||||
David
W. Biegler
|
648,720,625.119 | 26,360,178.444 | - | |||||||||
Louis
E. Caldera
|
648,478,255.860 | 26,602,547.703 | - | |||||||||
C.
Webb Crockett
|
395,928,827.688 | 279,151,975.875 | - | |||||||||
William
H. Cunningham
|
644,834,447.039 | 30,246,356.524 | - | |||||||||
Travis
C. Johnson
|
650,688,282.655 | 24,392,520.908 | - | |||||||||
Gary
C. Kelly
|
646,826,002.690 | 28,254,800.873 | - | |||||||||
Nancy
B. Loeffler
|
638,637,838.231 | 36,442,965.332 | - | |||||||||
John
T. Montford
|
629,130,530.304 | 45,950,273.259 | - |
Votes
For
|
Votes
Against
|
Abstentions
|
Broker
Non-Votes
|
|||||||||||
660,585,728.292 | 8,028,286.864 | 6,466,788.407 | - |
Votes
For
|
Votes
Against
|
Abstentions
|
Broker
Non-Votes
|
|||||||||||
404,917,852.202 | 183,229,247.815 | 7,788,693.546 | 79,145,010.000 |
Votes
For
|
Votes
Against
|
Abstentions
|
Broker
Non-Votes
|
|||||||||||
204,742,959.289 | 382,928,010.499 | 8,264,823.775 | 79,145,010.000 |
Votes
For
|
Votes
Against
|
Abstentions
|
Broker
Non-Votes
|
|||||||||||
127,817,036.576 | 372,268,530.225 | 95,850,226.762 | 79,145,010.000 |
a)
|
Exhibits
|
3.1
|
Restated
Articles of Incorporation of Southwest (incorporated by reference
to
|
|
Exhibit 4.1
to Southwest’s Registration Statement on
Form S-3 (File
|
||
No. 33-52155));
Amendment to Restated Articles of Incorporation of
Southwest
|
||
(incorporated
by reference to Exhibit 3.1 to Southwest’s Quarterly Report
on
|
||
Form 10-Q
for the quarter ended June 30, 1996 (File
No. 1-7259));
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 1998 (File No. 1-7259)); Amendment to Restated
Articles of
|
||
Incorporation
of Southwest (incorporated by reference to Exhibit 4.2 to
Southwest’s
|
||
Registration
Statement on Form S-8 (File No. 333-82735));
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2001 (File No. 1-7259)); Articles of Amendment
to
|
||
Articles
of Incorporation of Southwest Airlines Co. (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2007 (File No. 1-7259)).
|
||
3.2
|
Amended
and Restated Bylaws of Southwest, effective September 20,
2007
|
|
(incorporated
by reference to Exhibit 3.1 to Southwest’s Current
Report
|
||
on
Form 8-K dated September 20, 2007 (File
No. 1-7259)).
|
||
10.1
|
Supplemental
Agreement No. 60 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
10.2
|
$600,000,000
Term Loan Agreement, dated as of May 6, 2008, among
|
|
Southwest
Airlines Co., Citibank, N.A., as Administrative Agent and
as
|
||
Collateral
Agent, and the Lenders named therein, including the form
of
|
||
Mortgage
and Security Agreement in Exhibit B thereto (incorporated
by
|
||
reference
to Exhibit 4.1 to Southwest's Current Report on Form 8-K
dated
|
||
May
6, 2008 (File No. 1-7259)).
|
||
31.1
|
Rule
13a-14(a) Certification of Chief Executive Officer
|
|
31.2
|
Rule
13a-14(a) Certification of Chief Financial Officer
|
|
32.1
|
Section
1350 Certifications of Chief Executive Officer and Chief
Financial
|
|
Officer
|
SOUTHWEST
AIRLINES CO.
|
||
July
25, 2008
|
By
|
/s/ Laura
Wright
|
Laura
Wright
|
||
Chief
Financial Officer
|
||
(On
behalf of the Registrant and in
|
||
her
capacity as Principal Financial
|
||
and
Accounting Officer)
|
||
3.1
|
Restated
Articles of Incorporation of Southwest (incorporated by reference
to
|
|
Exhibit 4.1
to Southwest’s Registration Statement on
Form S-3 (File
|
||
No. 33-52155));
Amendment to Restated Articles of Incorporation of
Southwest
|
||
(incorporated
by reference to Exhibit 3.1 to Southwest’s Quarterly Report
on
|
||
Form 10-Q
for the quarter ended June 30, 1996 (File
No. 1-7259));
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 1998 (File No. 1-7259)); Amendment to Restated
Articles of
|
||
Incorporation
of Southwest (incorporated by reference to Exhibit 4.2 to
Southwest’s
|
||
Registration
Statement on Form S-8 (File No. 333-82735));
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2001 (File No. 1-7259)); Articles of Amendment
to
|
||
Articles
of Incorporation of Southwest Airlines Co. (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2007 (File No. 1-7259)).
|
||
3.2
|
Amended
and Restated Bylaws of Southwest, effective September 20,
2007
|
|
(incorporated
by reference to Exhibit 3.1 to Southwest’s Current
Report
|
||
on
Form 8-K dated September 20, 2007 (File
No. 1-7259)).
|
||
10.1
|
Supplemental
Agreement No. 60 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
10.2
|
$600,000,000
Term Loan Agreement, dated as of May 6, 2008, among
|
|
Southwest
Airlines Co., Citibank, N.A., as Administrative Agent and
as
|
||
Collateral
Agent, and the Lenders named therein, including the form
of
|
||
Mortgage
and Security Agreement in Exhibit B thereto (incorporated
by
|
||
reference
to Exhibit 4.1 to Southwest's Current Report on Form 8-K
dated
|
||
May
6, 2008 (File No. 1-7259)).
|
||
31.1
|
Rule
13a-14(a) Certification of Chief Executive Officer
|
|
31.2
|
Rule
13a-14(a) Certification of Chief Financial Officer
|
|
32.1
|
Section
1350 Certifications of Chief Executive Officer and Chief
Financial
|
|
Officer
|
Year
2008
Advance
Payment Due Date
|
Payments
made on *** Firm Aircraft
|
Current
Advance
Payment
amount
|
Revised
Advance Payment amount
|
Apr
16, 2008
|
***
|
***
|
***
|
May
1, 2008
|
***
|
***
|
|
Jun
2, 2008
|
***
|
***
|
|
Jul
1, 2008
|
***
|
***
|
|
Aug
1, 2008
|
***
|
***
|
|
Sep
2, 2008
|
***
|
***
|
|
Oct
1, 2008
|
***
|
***
|
|
Nov
3, 2008
|
***
|
***
|
|
Dec
1, 2008
|
***
|
***
|
THE
BOEING COMPANY
|
SOUTHWEST
AIRLINES CO.
|
By:
/s/ Nobuko
Wiles
|
By:
/s/ Scott
Toppping
|
Its:
Attorney-In-Fact
|
Its:
VP -
Treasurer
|
Page
|
SA
|
||
Number
|
Number
|
||
ARTICLES
|
|||
1.
|
Subject
Matter of Sale
|
1-1
|
SA-13
|
2.
|
Delivery,
Title and Risk of Loss
|
2-1
|
SA-28
|
3.
|
Price
of Aircraft
|
3-1
|
SA-47
|
4.
|
Taxes
|
4-1
|
|
5.
|
Payment
|
5-1
|
|
6.
|
Excusable
Delay
|
6-1
|
|
7.
|
Changes
to the Detail
|
||
Specification
|
7-1
|
SA-1
|
|
8.
|
Federal
Aviation Requirements and
|
||
Certificates
and Export License
|
8-1
|
||
9.
|
Representatives,
Inspection,
|
||
Flights
and Test Data
|
9-1
|
||
10.
|
Assignment,
Resale or Lease
|
10-1
|
|
11.
|
Termination
for Certain Events
|
11-1
|
|
12.
|
Product
Assurance; Disclaimer and
|
||
Release;
Exclusion of Liabilities;
|
|||
Customer
Support; Indemnification
|
|||
and
Insurance
|
12-1
|
||
13.
|
Buyer
Furnished Equipment and
|
||
Spare
Parts
|
13-1
|
||
14.
|
Contractual
Notices and Requests
|
14-1
|
|
15.
|
Miscellaneous
|
15-1
|
SA
|
||
Number
|
||
RESTRICTED LETTER
AGREEMENTS
|
||
6-1162-RLL-932R2
|
Promotional
Support
|
SA-13
|
6-1162-RLL-933R21
|
Option
Aircraft
|
SA-60
|
6-1162-RLL-934R3
|
Disclosure
of Confidential
|
SA-14
|
Information
|
||
6-1162-RLL-935R1
|
Performance
Guarantees
|
SA-1
|
6-1162-NIW-890
|
***-
|
SA-39
|
6-1162-RLL-936R4
|
Certain
Contractual Matters
|
SA-4
|
6-1162-RLL-937
|
Alternate
Advance Payment Schedule
|
|
6-1162-RLL-938
|
***
|
|
6-1162-RLL-939R1
|
Certification
Flight Test Aircraft
|
SA-1
|
6-1162-RLL-940R1
|
Training
Matters
|
SA-1
|
6-1162-RLL-941R2
|
Other
Matters
|
SA-13
|
6-1162-RLL-942
|
Open
Configuration Matters
|
|
6-1162-RLL-943R1
|
Substitution
Rights
|
SA-6
|
6-1162-RLL-944
|
***
|
|
6-1162-RLL-945
|
Comparison
of 737-7H4 and 737-3H4
|
|
Block
Fuel Burn
|
||
6-1162-RLL-1855R3
|
Additional
Contractual Matters
|
SA-4
|
6-1162-RLL-1856
|
***
|
SA-1
|
6-1162-RLL-1857
|
Service
Ready Validation Program
|
SA-1
|
Field
Test
|
||
6-1162-RLL-1858R1
|
Escalation
Matters
|
SA-4
|
Base
Aircraft Price
|
Special
Features
|
Aircraft
Basic Price
|
Base
Year Dollars
|
||
Block
A, B, C, D & E Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
F & G Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
H Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
I Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
J Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
K Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
K-W Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
L Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
T Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
T-W Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
T-W-1 / T-W-1a Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
T-W-2 / T-W-2a Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
K-W Aircraft: Block K airplanes with production winglets
installation
|
|||||
Block
T-W Aircraft: Block T airplanes with production winglets
installation
|
|||||
Block
T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver
from May 1, 2006 through June 2008 at the signing
|
|||||
of
SA-47 -- (T-W-1a Aircraft -- Advance Payment Schedule per LA
6-1162-JGM-669)
|
|||||
Block
T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which became Firm Aircraft
after signing of SA-47 and
|
|||||
Firm
Aircraft contracted to deliver in July 2008 forward at the signing of SA47
--
|
|||||
(T-W-2a
Aircraft -- Advance Payment Schedule per LA
6-1162-JGM-669)
|
Escalation
Estimate
|
||||
Delivery
|
Number
of
|
Aircraft
|
Adv
Payment Base
|
|
Date
|
Aircraft
|
Block
|
Price
Per A/P
|
Serial
Number
|
Dec-2000
|
2
|
E
|
***
|
|
Jan-2001
|
1
|
E
|
***
|
|
Feb-2001
|
1
|
E
|
***
|
|
Mar-2001
|
2
|
E
|
***
|
|
Jun-2001
|
3
|
E
|
***
|
|
Sep-2001
|
3
|
E
|
***
|
|
Oct-1998
|
1
|
F
|
***
|
|
Nov-1998
|
2
|
F
|
***
|
|
Dec-1998
|
2
|
F
|
***
|
|
Mar-1999
|
2
|
G
|
***
|
|
Jun-1999
|
2
|
H
|
***
|
|
Jul-1999
|
1
|
H
|
***
|
|
Aug-1999
|
1
|
H
|
***
|
|
Sep-1999
|
2
|
H
|
***
|
|
Oct-1999
|
1
|
H
|
***
|
|
Mar-2000
|
1
|
H
|
***
|
|
Apr-2000
|
2
|
H
|
***
|
|
Sep-2000
|
1
|
H
|
***
|
|
Oct-2000
|
2
|
H
|
***
|
|
Mar-2001
|
2
|
H
|
***
|
|
Apr-2001
|
1
|
H
|
***
|
|
Oct-2001
|
3
|
H
|
***
|
|
Nov-2001
|
2
|
I
|
***
|
|
Dec-2001
|
1
|
I
|
***
|
|
Jan-2002
|
1
|
I
|
***
|
|
Mar-2002
|
4
|
I
|
***
|
|
Apr-2002
|
2
|
I
|
***
|
|
Dec-2002
|
2
|
I
|
***
|
|
May-2003
|
1
|
I
|
***
|
|
Jun-2003
|
2
|
I
|
***
|
|
Jul-2003
|
1
|
I
|
***
|
|
Aug-2003
|
1
|
I
|
***
|
|
Sep-2003
|
3
|
I
|
***
|
|
Nov-2002
|
1
|
J
|
***
|
|
Dec-2002
|
1
|
J
|
***
|
|
Nov-2003
|
2
|
J
|
***
|
|
Dec-2003
|
2
|
J
|
***
|
|
Mar-2004
|
1
|
J
|
***
|
|
Mar-2004
|
1
|
K
|
***
|
|
Apr-2004
|
3
|
K
|
***
|
|
May-2004
|
1
|
K
|
***
|
|
Jun-2004
|
2
|
K
|
***
|
|
Jul-2004
|
2
|
K
|
***
|
|
Sep-2004
|
1
|
K-W
|
***
|
Oct-2004
|
4
|
K-W
|
***
|
|
Oct-1999
|
1
|
L
|
***
|
|
Nov-1999
|
2
|
L
|
***
|
|
Dec-1999
|
1
|
L
|
***
|
|
Jun-2000
|
3
|
L
|
***
|
|
Jul-2000
|
3
|
L
|
***
|
|
Sep-2000
|
1
|
L
|
***
|
|
Oct-2000
|
1
|
L
|
***
|
|
Nov-2000
|
4
|
L
|
***
|
|
Dec-2000
|
1
|
L
|
***
|
|
Jan-2001
|
1
|
L
|
***
|
|
Feb-2001
|
1
|
L
|
***
|
|
Jul-2001
|
1
|
L
|
***
|
|
Sep-2001
|
1
|
L
|
***
|
|
Oct-2001
|
1
|
L
|
***
|
|
Mar-2003
|
2
|
L
|
***
|
|
Jul-2003
|
1
|
L
|
***
|
|
Aug-2003
|
2
|
L
|
***
|
|
Nov-2001
|
1
|
T
|
***
|
|
Feb-2002
|
1
|
T
|
***
|
|
Jan-2004
|
2
|
T
|
***
|
|
Feb-2004
|
1
|
T
|
***
|
|
Apr-2004
|
3
|
T
|
***
|
|
May-2004
|
1
|
T
|
***
|
|
Jun-2004
|
6
|
T
|
***
|
|
Jul-2004
|
2
|
T
|
***
|
|
Aug-2004
|
6
|
T-W
|
***
|
|
Sep-2004
|
4
|
T-W
|
***
|
|
Oct-2004
|
0
|
T-W
|
***
|
|
Nov-2004
|
3
|
T-W
|
***
|
|
Dec-2004
|
3
|
T-W
|
***
|
|
Jan-2005
|
5
|
T-W
|
***
|
|
Feb-2005
|
3
|
T-W
|
***
|
|
Mar-2005
|
4
|
T-W
|
***
|
|
Apr-2005
|
4
|
T-W
|
***
|
|
May-2005
|
2
|
T-W
|
***
|
|
Jun-2005
|
4
|
T-W
|
***
|
|
Jul-2005
|
2
|
T-W
|
***
|
|
Aug-2005
|
2
|
T-W
|
***
|
|
Sep-2005
|
3
|
T-W
|
***
|
|
Oct-2005
|
2
|
T-W
|
***
|
|
Nov-2005
|
2
|
T-W
|
***
|
|
Dec-2005
|
1
|
T-W
|
***
|
|
Jan-2006
|
1
|
T-W
|
***
|
|
Feb-2006
|
4
|
T-W
|
***
|
|
Mar-2006
|
3
|
T-W
|
***
|
|
Apr-2006
|
2
|
T-W
|
***
|
|
May-2006
|
5
|
T-W-1
|
***
|
Jun-2006
|
5
|
T-W-1
|
***
|
|
Jul-2006
|
3
|
T-W-1
|
***
|
|
Aug-2006
|
3
|
T-W-1
|
***
|
|
Sep-2006
|
3
|
T-W-1
|
***
|
|
Oct-2006
|
1
|
T-W-1
|
***
|
|
Nov-2006
|
2
|
T-W-1
|
***
|
|
Dec-2006
|
2
|
T-W-1
|
***
|
|
Jan-2007
|
2
|
T-W-1
|
***
|
|
Feb-2007
|
3
|
T-W-1
|
***
|
|
Mar-2007
|
2
|
T-W-1
|
***
|
|
Apr-2007
|
3
|
T-W-1
|
***
|
|
May-2007
|
3
|
T-W-1
|
***
|
|
Jun-2007
|
2
|
T-W-1
|
***
|
|
Jun-2007
|
1
|
T-W-1a
|
***
|
36528
|
Jul-2007
|
2
|
T-W-1
|
***
|
|
Jul-2007
|
1
|
T-W-1a
|
***
|
36610
|
Aug-2007
|
2
|
T-W-1
|
***
|
|
Aug-2007
|
3
|
T-W-1a
|
***
|
36611,
36632 & 36633
|
Sep-2007
|
2
|
T-W-1
|
***
|
|
Sep-2007
|
1
|
T-W-1a
|
***
|
36612
|
Oct-2007
|
3
|
T-W-1
|
***
|
|
Oct-2007
|
1
|
T-W-1a
|
***
|
36613
|
Nov-2007
|
1
|
T-W-1
|
***
|
|
Nov-2007
|
1
|
T-W-1a
|
***
|
36614
|
Dec-2007
|
2
|
T-W-1
|
***
|
|
Dec-2007
|
1
|
T-W-1a
|
***
|
36615
|
Jan-2008
|
1
|
T-W-1
|
***
|
|
Jan-2008
|
2
|
T-W-1a
|
***
|
36616
& 36617
|
Jan-2008
|
1
|
T-W-2
|
***
|
36887
|
Feb-2008
|
1
|
T-W-1
|
***
|
|
Feb-2008
|
3
|
T-W-1a
|
***
|
36618,
36619 & 36620
|
Mar-2008
|
1
|
T-W-1
|
***
|
|
Mar-2008
|
2
|
T-W-1a
|
***
|
36621
& 36622
|
Mar-2008
|
1
|
T-W-2
|
***
|
36888
|
Apr-2008
|
1
|
T-W-1
|
***
|
|
Apr-2008
|
2
|
T-W-1a
|
***
|
36623
& 36624
|
May-2008
|
1
|
T-W-1
|
***
|
|
May-2008
|
2
|
T-W-1a
|
***
|
36625
& 36626
|
Jun-2008
|
1
|
T-W-1
|
***
|
|
Jun-2008
|
2
|
T-W-1a
|
***
|
36627
& 36628
|
Jul-2008
|
2
|
T-W-2a
|
***
|
|
Jul-2008
|
2
|
T-W-2
|
***
|
36889
& 36890
|
Aug-2008
|
1
|
T-W-2a
|
***
|
|
Oct-2008
|
1
|
T-W-2a
|
***
|
|
Nov-2008
|
1
|
T-W-2a
|
***
|
|
Dec-2008
|
1
|
T-W-2a
|
***
|
|
Jan-2009
|
1
|
T-W-2a
|
***
|
|
Feb-2009
|
2
|
T-W-2a
|
***
|
Mar-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
1
|
T-W-2
|
***
|
36900
|
May-2009
|
2
|
T-W-2a
|
***
|
|
Jun-2009
|
1
|
T-W-2a
|
***
|
|
Jul-2009
|
1
|
T-W-2a
|
***
|
|
Jul-2009
|
1
|
T-W-2
|
***
|
36904
|
Aug-2009
|
1
|
T-W-2a
|
***
|
|
Jan-2010
|
1
|
T-W-2a
|
***
|
|
Jan-2010
|
1
|
T-W-2
|
***
|
36913
|
Feb-2010
|
1
|
T-W-2a
|
***
|
|
Feb-2010
|
1
|
T-W-2
|
***
|
36916
|
Mar-2010
|
1
|
T-W-2a
|
***
|
|
Mar-2010
|
1
|
T-W-2
|
***
|
36918
|
Apr-2010
|
1
|
T-W-2a
|
***
|
|
Apr-2010
|
1
|
T-W-2
|
***
|
36921
|
May-2010
|
1
|
T-W-2a
|
***
|
|
May-2010
|
2
|
T-W-2
|
***
|
36923,
36924
|
Jun-2010
|
1
|
T-W-2a
|
***
|
|
Jul-2010
|
1
|
T-W-2a
|
***
|
|
Aug-2010
|
1
|
T-W-2a
|
***
|
|
Sep-2010
|
1
|
T-W-2a
|
***
|
|
Oct-2010
|
1
|
T-W-2a
|
***
|
|
Jan-2011
|
1
|
T-W-2a
|
***
|
|
Feb-2011
|
1
|
T-W-2a
|
***
|
|
Mar-2011
|
1
|
T-W-2a
|
***
|
|
Apr-2011
|
1
|
T-W-2a
|
***
|
|
May-2011
|
1
|
T-W-2a
|
***
|
|
Jun-2011
|
1
|
T-W-2a
|
***
|
|
Jul-2011
|
1
|
T-W-2a
|
***
|
|
Aug-2011
|
1
|
T-W-2a
|
***
|
|
Sep-2011
|
1
|
T-W-2a
|
***
|
|
Oct-2011
|
1
|
T-W-2a
|
***
|
|
Oct-2011
|
1
|
T-W-2
|
***
|
36966
|
Nov-2011
|
1
|
T-W-2
|
***
|
36968
|
Dec-2011
|
1
|
T-W-2
|
***
|
36971
|
Jan-2012
|
1
|
T-W-2a
|
***
|
|
Feb-2012
|
1
|
T-W-2a
|
***
|
|
Mar-2012
|
1
|
T-W-2a
|
***
|
|
Apr-2012
|
1
|
T-W-2a
|
***
|
|
May-2012
|
1
|
T-W-2a
|
***
|
|
Jun-2012
|
1
|
T-W-2a
|
***
|
|
Jul-2012
|
1
|
T-W-2a
|
***
|
|
Aug-2012
|
1
|
T-W-2a
|
***
|
|
Sep-2012
|
1
|
T-W-2a
|
***
|
|
Oct-2012
|
1
|
T-W-2a
|
***
|
|
Oct-2012
|
1
|
T-W-2
|
***
|
36997
|
Nov-2012
|
1
|
T-W-2
|
***
|
37005
|
Dec-2012
|
1
|
T-W-2
|
***
|
37006
|
Jan-2013
|
1
|
T-W-2
|
***
|
36891
|
Jan-2013
|
1
|
T-W-2a
|
***
|
|
Feb-2013
|
1
|
T-W-2a
|
***
|
|
Mar-2013
|
1
|
T-W-2a
|
***
|
|
Mar-2013
|
1
|
T-W-2
|
***
|
|
Apr-2013
|
1
|
T-W-2
|
***
|
|
May-2013
|
1
|
T-W-2
|
***
|
|
Jun-2013
|
2
|
T-W-2
|
***
|
|
Jul-2013
|
1
|
T-W-2
|
***
|
|
Aug-2013
|
2
|
T-W-2
|
***
|
|
Sep-2013
|
2
|
T-W-2
|
***
|
|
Oct-2013
|
2
|
T-W-2
|
***
|
|
Nov-2013
|
1
|
T-W-2
|
***
|
|
Dec-2013
|
2
|
T-W-2
|
***
|
|
Jan-2014
|
1
|
T-W-2
|
***
|
|
Feb-2014
|
1
|
T-W-2
|
***
|
|
Mar-2014
|
1
|
T-W-2
|
***
|
|
Apr-2014
|
1
|
T-W-2
|
***
|
|
May-2014
|
1
|
T-W-2
|
***
|
|
Jun-2014
|
1
|
T-W-2
|
***
|
|
Jul-2014
|
1
|
T-W-2
|
***
|
|
Aug-2014
|
1
|
T-W-2
|
***
|
|
Sep-2014
|
1
|
T-W-2
|
***
|
|
Oct-2014
|
1
|
T-W-2
|
***
|
|
Jan-2015
|
1
|
T-W-2
|
***
|
36899
|
Feb-2015
|
1
|
T-W-2
|
***
|
36901
|
Mar-2015
|
1
|
T-W-2
|
***
|
36902
|
Apr-2015
|
2
|
T-W-2a
|
***
|
36649,
36652
|
May-2015
|
1
|
T-W-2
|
***
|
36903
|
Jun-2015
|
1
|
T-W-2
|
***
|
36906
|
Jun-2015
|
1
|
T-W-2a
|
***
|
36654
|
Jul-2015
|
1
|
T-W-2a
|
***
|
36655
|
Aug-2015
|
1
|
T-W-2a
|
***
|
36656
|
Sep-2015
|
1
|
T-W-2a
|
***
|
36657
|
Aircraft
|
Number
of
|
Option
|
Adv
Payment Base *
|
|
Delivery
|
Option
|
Aircraft
|
Price
Per
|
|
Mo.
& Yr.
|
Aircraft
|
Block
|
Option
Aircraft
|
Option
Exercise
|
Aug-2010
|
1
|
U-W-1
|
***
|
April
1, 2009
|
Sep-2010
|
1
|
U-W-1
|
***
|
May
1, 2009
|
Oct-2010
|
1
|
U-W-1
|
***
|
June
1, 2009
|
Nov-2010
|
2
|
U-W-1
|
***
|
July
1, 2009
|
Dec-2010
|
1
|
U-W-1
|
***
|
August
3, 2009
|
Jan-2011
|
1
|
U-W-1
|
***
|
September
1, 2009
|
Feb-2011
|
2
|
U-W-1
|
***
|
October
1, 2009
|
Mar-2011
|
1
|
U-W-1
|
***
|
November
2, 2009
|
Apr-2011
|
1
|
U-W-1
|
***
|
December
1, 2009
|
May-2011
|
2
|
U-W-1
|
***
|
January
1, 2010
|
Jun-2011
|
2
|
U-W-1
|
***
|
February
1, 2010
|
Jul-2011
|
2
|
U-W-1
|
***
|
March
1, 2010
|
Aug-2011
|
2
|
U-W-1
|
***
|
April
1, 2010
|
Sep-2011
|
2
|
U-W-1
|
***
|
May
3, 2010
|
Oct-2011
|
1
|
U-W-1
|
***
|
June
1, 2010
|
Nov-2011
|
2
|
U-W-1
|
***
|
July
1, 2010
|
Dec-2011
|
1
|
U-W-1
|
***
|
August
2, 2010
|
Jan-2012
|
3
|
U-W-1
|
***
|
September
1, 2010
|
Feb-2012
|
3
|
U-W-1
|
***
|
October
1, 2010
|
Mar-2012
|
2
|
U-W-1
|
***
|
November
1, 2010
|
Apr-2012
|
3
|
U-W-1
|
***
|
December
1, 2010
|
May-2012
|
3
|
U-W-1
|
***
|
January
3, 2011
|
Jun-2012
|
3
|
U-W-1
|
***
|
February
1, 2011
|
Jul-2012
|
2
|
U-W-1
|
***
|
March
1, 2011
|
Aug-2012
|
2
|
U-W-1
|
***
|
April
1, 2011
|
Sep-2012
|
2
|
U-W-1
|
***
|
May
2, 2011
|
Oct-2012
|
1
|
U-W-1
|
***
|
June
1, 2011
|
Nov-2012
|
2
|
U-W-1
|
***
|
July
1, 2011
|
Dec-2012
|
1
|
U-W-1
|
***
|
August
1, 2011
|
Feb-2013
|
1
|
U-W-1
|
***
|
October
1, 2011
|
Jan-2014
|
1
|
U-W-1
|
***
|
September
1, 2012
|
Feb-2014
|
1
|
U-W-1
|
***
|
October
1, 2012
|
Mar-2014
|
2
|
U-W-1
|
***
|
November
1, 2012
|
Apr-2014
|
2
|
U-W-1
|
***
|
December
1, 2012
|
Aug-2014
|
1
|
U-W-1
|
***
|
April
1, 2013
|
Sep-2014
|
1
|
U-W-1
|
***
|
May
1, 2013
|
Jan-2015
|
1
|
U-W-1
|
***
|
September
1, 2013
|
Feb-2015
|
1
|
U-W-1
|
***
|
October
1, 2013
|
Mar-2015
|
1
|
U-W-1
|
***
|
November
1, 2013
|
Oct-2015
|
1
|
U-W-1
|
***
|
June
1, 2014
|
Nov-2015
|
1
|
U-W-1
|
***
|
July
1, 2014
|
Dec-2015
|
1
|
U-W-1
|
***
|
August
1, 2014
|
Total
|
67
|
|||
*
Advance Payment Base Price for Option Aircraft scheduled for delivery
prior to Jan 2015 is based on 4th Qtr 2005 forecast
|
||||
* Advance
Payment Base Price for Option Aircraft scheduled for delivery starting in
Jan 2015 is based on 4th Qtr 2007
forecast
|
Subject:
|
Letter
Agreement No. 6-1162-RLL-933R
21
to
Purchase Agreement No. 1810 -
Option Aircraft
|
THE
BOEING COMPANY
|
By
/s/ Nobuko
Wiles
|
Its
Attorney-In-Fact
|
ACCEPTED
AND AGREED TO this
|
date:
April 16
,
2008
|
SOUTHWEST
AIRLINES CO.
|
By
/s/ Scott
Topping
|
Its
VP –
Treasurer
|
Attachments
|
By:
|
/s/ Gary C.
Kelly
|
Gary
C. Kelly
|
|
Chief
Executive Officer
|
|
By:
|
/s/ Laura H.
Wright
|
Laura
H. Wright
|
|
Chief
Financial Officer
|
|
By:
|
/s/ Gary C.
Kelly
|
Gary
C. Kelly
|
|
Chief
Executive Officer
|
|
By:
|
/s/ Laura H.
Wright
|
Laura
H. Wright
|
|
Chief
Financial Officer
|
|