þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2009
|
|
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 20, 2009: 741,447,409
|
June 30, 2009
|
December 31, 2008
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 946 | $ | 1,368 | ||||
Short-term investments
|
1,252 | 435 | ||||||
Accounts and other receivables
|
237 | 209 | ||||||
Inventories of parts and supplies, at cost
|
200 | 203 | ||||||
Deferred income taxes
|
365 | 365 | ||||||
Prepaid expenses and other current assets
|
94 | 73 | ||||||
Total current assets
|
3,094 | 2,653 | ||||||
Property and equipment, at cost:
|
||||||||
Flight equipment
|
13,690 | 13,722 | ||||||
Ground property and equipment
|
1,849 | 1,769 | ||||||
Deposits on flight equipment purchase contracts
|
204 | 380 | ||||||
15,743 | 15,871 | |||||||
Less allowance for depreciation and amortization
|
5,082 | 4,831 | ||||||
10,661 | 11,040 | |||||||
Other assets
|
272 | 375 | ||||||
$ | 14,027 | $ | 14,068 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 732 | $ | 668 | ||||
Accrued liabilities
|
1,029 | 1,012 | ||||||
Air traffic liability
|
1,207 | 963 | ||||||
Current maturities of long-term debt
|
105 | 163 | ||||||
Total current liabilities
|
3,073 | 2,806 | ||||||
Long-term debt less current maturities
|
3,278 | 3,498 | ||||||
Deferred income taxes
|
1,921 | 1,904 | ||||||
Deferred gains from sale and leaseback of aircraft
|
128 | 105 | ||||||
Other deferred liabilities
|
481 | 802 | ||||||
Stockholders' equity:
|
||||||||
Common stock
|
808 | 808 | ||||||
Capital in excess of par value
|
1,223 | 1,215 | ||||||
Retained earnings
|
4,863 | 4,919 | ||||||
Accumulated other comprehensive loss
|
(762 | ) | (984 | ) | ||||
Treasury stock, at cost
|
(986 | ) | (1,005 | ) | ||||
Total stockholders' equity
|
5,146 | 4,953 | ||||||
$ | 14,027 | $ | 14,068 | |||||
See accompanying notes.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
OPERATING REVENUES:
|
||||||||||||||||
Passenger
|
$ | 2,506 | $ | 2,747 | $ | 4,758 | $ | 5,161 | ||||||||
Freight
|
29 | 37 | 58 | 71 | ||||||||||||
Other
|
81 | 85 | 156 | 167 | ||||||||||||
Total operating revenues
|
2,616 | 2,869 | 4,972 | 5,399 | ||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Salaries, wages, and benefits
|
863 | 839 | 1,699 | 1,639 | ||||||||||||
Fuel and oil
|
726 | 945 | 1,423 | 1,745 | ||||||||||||
Maintenance materials and repairs
|
190 | 191 | 373 | 333 | ||||||||||||
Aircraft rentals
|
47 | 38 | 93 | 76 | ||||||||||||
Landing fees and other rentals
|
179 | 159 | 345 | 330 | ||||||||||||
Depreciation and amortization
|
150 | 148 | 300 | 293 | ||||||||||||
Other operating expenses
|
338 | 344 | 666 | 690 | ||||||||||||
Total operating expenses
|
2,493 | 2,664 | 4,899 | 5,106 | ||||||||||||
OPERATING INCOME
|
123 | 205 | 73 | 293 | ||||||||||||
OTHER EXPENSES (INCOME):
|
||||||||||||||||
Interest expense
|
47 | 32 | 92 | 60 | ||||||||||||
Capitalized interest
|
(5 | ) | (6 | ) | (11 | ) | (14 | ) | ||||||||
Interest income
|
(3 | ) | (5 | ) | (8 | ) | (12 | ) | ||||||||
Other (gains) losses, net
|
34 | (345 | ) | 57 | (307 | ) | ||||||||||
Total other expenses (income)
|
73 | (324 | ) | 130 | (273 | ) | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
50 | 529 | (57 | ) | 566 | |||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
(4 | ) | 208 | (20 | ) | 211 | ||||||||||
NET INCOME (LOSS)
|
$ | 54 | $ | 321 | $ | (37 | ) | $ | 355 | |||||||
NET INCOME (LOSS) PER SHARE, BASIC
|
$.07 | $.44 | ($.05 | ) | $.48 | |||||||||||
NET INCOME (LOSS) PER SHARE, DILUTED
|
$.07 | $.44 | ($.05 | ) | $.48 | |||||||||||
WEIGHTED AVERAGE SHARES
|
||||||||||||||||
OUTSTANDING:
|
||||||||||||||||
Basic
|
741 | 732 | 741 | 733 | ||||||||||||
Diluted
|
741 | 737 | 741 | 736 | ||||||||||||
See accompanying notes.
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||
Net income (loss)
|
$ 54
|
$ 321
|
$ (37)
|
$ 355
|
||||||||||
Adjustments to reconcile net income (loss) to
|
||||||||||||||
cash provided by operating activities:
|
||||||||||||||
Depreciation and amortization
|
150
|
148
|
300
|
293
|
||||||||||
Unrealized loss (gain) on fuel derivative instruments
|
54
|
(324)
|
124
|
(290)
|
||||||||||
Deferred income taxes
|
(4)
|
135
|
(25)
|
129
|
||||||||||
Amortization of deferred gains on sale and
|
||||||||||||||
leaseback of aircraft
|
(4)
|
(3)
|
(7)
|
(6)
|
||||||||||
Share-based compensation expense
|
3
|
5
|
6
|
9
|
||||||||||
Excess tax benefits from share-based
|
||||||||||||||
compensation arrangements
|
(5)
|
3
|
(1)
|
3
|
||||||||||
Changes in certain assets and liabilities:
|
||||||||||||||
Accounts and other receivables
|
(6)
|
(97)
|
(28)
|
(167)
|
||||||||||
Other current assets
|
(28)
|
(37)
|
(18)
|
(50)
|
||||||||||
Accounts payable and accrued liabilities
|
104
|
286
|
104
|
333
|
||||||||||
Air traffic liability
|
(43)
|
105
|
244
|
372
|
||||||||||
Cash collateral received from (provided to) fuel
|
||||||||||||||
derivative counterparties
|
(125)
|
1,865
|
(185)
|
2,435
|
||||||||||
Other, net
|
(15)
|
(71)
|
(57)
|
(116)
|
||||||||||
Net cash provided by operating activities
|
135
|
2,336
|
420
|
3,300
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||
Purchases of property and equipment, net
|
(187)
|
(223)
|
(272)
|
(587)
|
||||||||||
Purchases of short-term investments
|
(1,394)
|
(2,226)
|
(3,090)
|
(3,447)
|
||||||||||
Proceeds from sales of short-term investments
|
1,203
|
1,185
|
2,347
|
2,645
|
||||||||||
Other, net
|
1
|
-
|
1
|
-
|
||||||||||
Net cash used in investing activities
|
(377)
|
(1,264)
|
(1,014)
|
(1,389)
|
||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||
Proceeds from sale and leaseback transactions
|
208
|
-
|
381
|
-
|
||||||||||
Issuance of Long-term debt
|
332
|
600
|
332
|
600
|
||||||||||
Proceeds from Employee stock plans
|
4
|
17
|
8
|
27
|
||||||||||
Payments of long-term debt and capital lease obligations
|
(7)
|
(6)
|
(41)
|
(25)
|
||||||||||
Payment of revolving credit facility
|
(400)
|
-
|
(400)
|
-
|
||||||||||
Payment of credit line borrowing
|
(91)
|
-
|
(91)
|
-
|
||||||||||
Payments of cash dividends
|
(3)
|
(3)
|
(10)
|
(10)
|
||||||||||
Repurchase of common stock
|
-
|
-
|
-
|
(54)
|
||||||||||
Excess tax benefits from share-based
|
||||||||||||||
compensation arrangements
|
5
|
(3)
|
1
|
(3)
|
||||||||||
Other, net
|
(5)
|
(6)
|
(8)
|
(6)
|
||||||||||
Net cash provided by financing activities
|
43
|
599
|
172
|
529
|
||||||||||
NET CHANGE IN CASH AND
|
||||||||||||||
CASH EQUIVALENTS
|
(199)
|
1,671
|
(422)
|
2,440
|
||||||||||
CASH AND CASH EQUIVALENTS AT
|
||||||||||||||
BEGINNING OF PERIOD
|
1,145
|
2,982
|
1,368
|
2,213
|
||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||
AT END OF PERIOD
|
$ 946
|
$ 4,653
|
$ 946
|
$ 4,653
|
||||||||||
CASH PAYMENTS FOR:
|
||||||||||||||
Interest, net of amount capitalized
|
$ 42
|
$ 16
|
$ 78
|
$ 41
|
||||||||||
Income taxes
|
$ 3
|
$ 7
|
$ 4
|
$ 13
|
||||||||||
See accompanying notes.
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
NUMERATOR:
|
||||||||||||||||
Net income (loss)
|
$ | 54 | $ | 321 | $ | (37 | ) | $ | 355 | |||||||
DENOMINATOR:
|
||||||||||||||||
Weighted-average shares
|
||||||||||||||||
outstanding, basic
|
741 | 732 | 741 | 733 | ||||||||||||
Dilutive effect of Employee stock
|
||||||||||||||||
options
|
- | 5 | - | 3 | ||||||||||||
Adjusted weighted-average shares
|
||||||||||||||||
outstanding, diluted
|
741 | 737 | 741 | 736 | ||||||||||||
NET INCOME (LOSS) PER SHARE:
|
||||||||||||||||
Basic
|
$ | .07 | $ | .44 | $ | (.05 | ) | $ | .48 | |||||||
Diluted
|
$ | .07 | $ | .44 | $ | (.05 | ) | $ | .48 |
Balance Sheet
|
June 30,
|
December 31,
|
|||||||
Location
|
2009
|
2008
|
|||||||
Cash collateral deposits provided
|
Offset against Other
|
||||||||
to counterparty - noncurrent
|
deferred liabilities
|
374 | 240 | ||||||
Cash collateral deposits provided
|
Offset against Accrued
|
||||||||
to counterparty - current
|
liabilities
|
51 | - | ||||||
Due to third parties for settled fuel contracts
|
Accrued liabilities
|
18 | 16 | ||||||
Net unrealized losses from fuel
|
Accumulated other
|
||||||||
hedges, net of tax
|
comprehensive loss
|
750 | 946 |
Three months ended June 30, | ||||||||
(In millions)
|
2009
|
2008
|
||||||
Net income
|
$ | 54 | $ | 321 | ||||
Unrealized gain (loss) on derivative instruments,
|
||||||||
net of deferred taxes of $86 and $753
|
138 | 1,209 | ||||||
Other, net of deferred taxes of $14 and ($1)
|
22 | (2 | ) | |||||
Total other comprehensive income
|
160 | 1,207 | ||||||
Comprehensive income
|
$ | 214 | $ | 1,528 |
Six months ended June 30, | ||||||||
(In millions)
|
2009
|
2008
|
||||||
Net income
|
$ | (37 | ) | $ | 355 | |||
Unrealized gain (loss) on derivative instruments,
|
||||||||
net of deferred taxes of $122 and $904
|
196 | 1,469 | ||||||
Other, net of deferred taxes of $16 and ($7)
|
26 | (11 | ) | |||||
Total other comprehensive income (loss)
|
222 | 1,458 | ||||||
Comprehensive income
|
$ | 185 | $ | 1,813 |
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In millions)
|
derivatives
|
Other
|
income (loss)
|
|||||||||
Balance at March 31, 2009
|
$ | (888 | ) | $ | (34 | ) | $ | (922 | ) | |||
Second quarter 2009 changes in value
|
42 | 22 | 64 | |||||||||
Reclassification to earnings
|
96 | - | 96 | |||||||||
Balance at June 30, 2009
|
$ | (750 | ) | $ | (12 | ) | $ | (762 | ) |
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In millions)
|
derivatives
|
Other
|
income (loss)
|
|||||||||
Balance at December 31, 2008
|
$ | (946 | ) | $ | (38 | ) | $ | (984 | ) | |||
2009 changes in value
|
(10 | ) | 26 | 16 | ||||||||
Reclassification to earnings
|
206 | - | 206 | |||||||||
Balance at June 30, 2009
|
$ | (750 | ) | $ | (12 | ) | $ | (762 | ) |
June 30,
|
December 31,
|
|||||||
(In millions)
|
2009
|
2008
|
||||||
Retirement plans
|
$ | 97 | $ | 86 | ||||
Aircraft rentals
|
109 | 118 | ||||||
Vacation pay
|
181 | 175 | ||||||
Advances and deposits
|
14 | 23 | ||||||
Fuel derivative contracts
|
120 | 246 | ||||||
Deferred income taxes
|
138 | 36 | ||||||
Workers compensation
|
124 | 122 | ||||||
Other
|
246 | 206 | ||||||
Accrued liabilities
|
$ | 1,029 | $ | 1,012 |
Three months ended June 30, | ||||||||
(In millions)
|
2009
|
2008
|
||||||
Service cost
|
$ | 4 | $ | 4 | ||||
Interest cost
|
1 | 1 | ||||||
Amortization of prior service cost
|
1 | 1 | ||||||
Recognized actuarial gain
|
(1 | ) | (1 | ) | ||||
Net periodic postretirement benefit cost
|
$ | 5 | $ | 5 |
Six months ended June 30, | ||||||||
(In millions)
|
2009
|
2008
|
||||||
Service cost
|
$ | 7 | $ | 7 | ||||
Interest cost
|
2 | 2 | ||||||
Amortization of prior service cost
|
1 | 1 | ||||||
Recognized actuarial gain
|
(1 | ) | (1 | ) | ||||
Net periodic postretirement benefit cost
|
$ | 9 | $ | 9 |
Three months ended June 30,
|
||||||||||||
2009
|
2008
|
Change
|
||||||||||
Revenue passengers carried
|
22,676,171 | 23,993,342 | (5.5 | )% | ||||||||
Enplaned passengers
|
26,505,438 | 27,550,957 | (3.8 | )% | ||||||||
Revenue passenger miles (RPMs) (000s)
|
19,683,479 | 19,811,541 | (0.6 | )% | ||||||||
Available seat miles (ASMs) (000s)
|
25,552,927 | 26,335,085 | (3.0 | )% | ||||||||
Load factor
|
77.0 | % | 75.2 | % |
1.8
|
pts | ||||||
Average length of passenger haul (miles)
|
868 | 826 | 5.1 | % | ||||||||
Average aircraft stage length (miles)
|
647 | 636 | 1.7 | % | ||||||||
Trips flown
|
289,573 | 303,432 | (4.6 | )% | ||||||||
Average passenger fare
|
$110.52 | $114.48 | (3.5 | )% | ||||||||
Passenger revenue yield per RPM (cents)
|
12.73 | 13.86 | (8.2 | )% | ||||||||
Operating revenue yield per ASM (cents)
|
10.24 | 10.89 | (6.0 | )% | ||||||||
Operating expenses per ASM (cents)
|
9.76 | 10.12 | (3.6 | )% | ||||||||
Fuel costs per gallon, including fuel tax
|
$1.95 | $2.42 | (19.4 | )% | ||||||||
Fuel consumed, in gallons (millions)
|
371 | 388 | (4.4 | )% | ||||||||
Full-time equivalent Employees at period-end*
|
35,296 | 34,936 | 1.0 | % | ||||||||
Aircraft in service at period-end**
|
543 | 535 | 1.5 | % | ||||||||
* Headcount is defined as "Active" fulltime equivalent Employees for both periods presented.
|
||||||||||||
** Excludes any aircraft that have been removed from service and are held for sale or for return to the lessor.
|
Three months ended June 30, |
Per ASM
|
Percent
|
||||||||||||||
2009
|
2008
|
Change
|
Change
|
|||||||||||||
Salaries, wages, and benefits
|
3.38 | 3.19 | .19 | 6.0 | ||||||||||||
Fuel and oil
|
2.84 | 3.59 | (.75 | ) | (20.9 | ) | ||||||||||
Maintenance materials
|
||||||||||||||||
and repairs
|
.74 | .73 | .01 | 1.4 | ||||||||||||
Aircraft rentals
|
.19 | .14 | .05 | 35.7 | ||||||||||||
Landing fees and other rentals
|
.70 | .60 | .10 | 16.7 | ||||||||||||
Depreciation
|
.59 | .56 | .03 | 5.4 | ||||||||||||
Other operating expenses
|
1.32 | 1.31 | .01 | .8 | ||||||||||||
Total
|
9.76 | 10.12 | (.36 | ) | (3.6 | ) |
Fair value
|
Amount of
|
|||||||
(liability) of fuel
|
(losses) deferred
|
|||||||
derivative contracts
|
in AOCI at June 30,
|
|||||||
Year
|
at June 30, 2009
|
2009 (net of tax)
|
||||||
2009
|
$ | (92 | ) | $ | (153 | ) | ||
2010
|
$ | (160 | ) | $ | (224 | ) | ||
2011
|
$ | (221 | ) | $ | (157 | ) | ||
2012
|
$ | (155 | ) | $ | (109 | ) | ||
2013
|
$ | (135 | ) | $ | (107 | ) | ||
Total
|
$ | (763 | ) | $ | (750 | ) |
Three months ended June 30, | ||||||||
(In millions)
|
2009
|
2008
|
||||||
Mark-to-market impact from fuel contracts settling in future
|
||||||||
periods - included in Other (gains) losses, net
|
$ | 20 | $ | (369 | ) | |||
Ineffectiveness from fuel hedges settling in future periods -
|
||||||||
included in Other (gains) losses, net
|
(24 | ) | 14 | |||||
Realized ineffectiveness and mark-to-market (gains) or
|
||||||||
losses - included in Other (gains) losses, net
|
(2 | ) | (6 | ) | ||||
Premium cost of fuel contracts included in Other (gains) losses, net
|
37 | 14 | ||||||
Other
|
3 | 2 | ||||||
$ | 34 | $ | (345 | ) |
Six months ended June 30, |
Per ASM
|
Percent
|
||||||||||||||
2009
|
2008
|
Change
|
Change
|
|||||||||||||
Salaries, wages, and benefits
|
3.42 | 3.18 | .24 | 7.5 | ||||||||||||
Fuel and oil
|
2.86 | 3.38 | (.52 | ) | (15.4 | ) | ||||||||||
Maintenance materials
|
||||||||||||||||
and repairs
|
.75 | .65 | .10 | 15.4 | ||||||||||||
Aircraft rentals
|
.19 | .15 | .04 | 26.7 | ||||||||||||
Landing fees and other rentals
|
.69 | .64 | .05 | 7.8 | ||||||||||||
Depreciation
|
.60 | .57 | .03 | 5.3 | ||||||||||||
Other operating expenses
|
1.34 | 1.34 | - | - | ||||||||||||
Total
|
9.85 | 9.91 | (.06 | ) | (.6 | ) |
Six months ended June 30, | ||||||||
(In millions)
|
2009
|
2008
|
||||||
Mark-to-market impact from fuel contracts settling in future
|
||||||||
periods - included in Other (gains) losses, net
|
$ | 18 | $ | (373 | ) | |||
Ineffectiveness from fuel hedges settling in future periods -
|
||||||||
included in Other (gains) losses, net
|
(11 | ) | 19 | |||||
Realized ineffectiveness and mark-to-market (gains) or
|
||||||||
losses - included in Other (gains) losses, net
|
(23 | ) | 17 | |||||
Premium cost of fuel contracts included in Other (gains) losses, net
|
69 | 27 | ||||||
Other
|
4 | 3 | ||||||
$ | 57 | $ | (307 | ) |
Average
|
Number
|
Number
|
Number
|
|||||||||||||||||||
737 Type
|
Seats
|
Age (Yrs)
|
of Aircraft
|
Owned
|
Leased
|
|||||||||||||||||
-300 | 137 | 17.8 | 180 | 110 | 70 | |||||||||||||||||
-500 | 122 | 18.2 | 25 | 16 | 9 | |||||||||||||||||
-700 | 137 | 5.6 | 338 | 318 | 20 | |||||||||||||||||
TOTALS
|
10.2 | 543 | 444 | 99 |
(i)
|
continued unfavorable economic conditions, which could continue to impact the demand for air travel and the Company’s ability to adjust fares;
|
(ii)
|
continued volatility in the price and availability of aircraft fuel and the impact of hedge accounting and any changes in the Company’s fuel hedging strategies and positions;
|
(iii)
|
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;
|
(iv)
|
the results of pending labor negotiations;
|
(v)
|
continued instability of the credit, capital, and energy markets, which could result in future pressure on credit ratings and could also negatively impact the Company’s ability to obtain financing on acceptable terms and the Company’s liquidity generally;
|
(vi)
|
the impact of aircraft industry incidents and the economy on the future availability and cost of insurance;
|
(vii)
|
the impact of technological initiatives on the Company’s technology infrastructure, including its point of sale, ticketing, revenue accounting, payroll and financial reporting areas;
|
(viii)
|
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;
|
(ix)
|
the Company’s dependence on third party arrangements to assist with implementation of certain of its initiatives;
|
(x)
|
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;
|
(xi)
|
competitor capacity and load factors; and
|
(xii)
|
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, 2008.
|
Aggregate
|
|||
Number of
|
Option exercise
|
proceeds to
|
|
shares purchased
|
price per share
|
Date of exercise
|
the Company
|
10,000
|
$1.00
|
4/16/2009
|
$10,000
|
|
1. Proposal 1 - Election of nine Directors for one-year terms expiring in 2010.
|
Name of Nominee
|
Votes For
|
Votes Withheld
|
Broker Non-Votes
|
David W. Biegler
|
413,823,320
|
266,325,667
|
-
|
C. Webb Crockett
|
315,127,440
|
365,021,547
|
-
|
William H. Cunningham
|
410,523,787
|
269,625,200
|
-
|
John G. Denison
|
655,271,899
|
24,877,088
|
-
|
Travis C. Johnson
|
399,393,035
|
280,755,952
|
-
|
Gary C. Kelly
|
420,042,502
|
260,106,485
|
-
|
Nancy B. Loeffler
|
418,353,859
|
261,795,128
|
-
|
John T. Montford
|
399,077,148
|
281,071,839
|
-
|
Daniel D. Villanueva
|
646,557,851
|
33,591,136
|
-
|
|
2. Proposal 2 – A proposal to approve the Southwest Airlines Co. Amended and Restated 1991 Employee Stock Purchase Plan.
|
Votes For
|
Votes Against
|
Abstentions
|
Broker Non-Votes
|
586,195,297
|
3,947,529
|
3,843,304
|
86,162,857
|
|
3. Proposal 3 – A proposal to ratify the selection of Ernst & Young LLP as the Company’s independent auditors for the fiscal year ending December 31, 2009.
|
Votes For
|
Votes Against
|
Abstentions
|
Broker Non-Votes
|
667,882,990
|
11,403,849
|
862,148
|
-
|
|
4. Proposal 4 – A Shareholder proposal requesting that the Board of Directors take the necessary steps to reincorporate the Company in North Dakota.
|
Votes For
|
Votes Against
|
Abstentions
|
Broker Non-Votes
|
116,538,447
|
474,351,834
|
3,095,849
|
86,162,857
|
|
5. Proposal 5 – A Shareholder proposal requesting that the Board of Directors adopt principles for health care reform.
|
Votes For
|
Votes Against
|
Abstentions
|
Broker Non-Votes
|
30,446,500
|
465,960,873
|
97,578,758
|
86,162,856
|
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 (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 January 15,
|
|
2009 (incorporated by reference to Exhibit 3.1 to Southwest’s Current Report
|
||
on Form 8-K dated January 15, 2009 (File No. 1-7259)).
|
||
10.1
|
Southwest Airlines Co. Amended and Restated Director Severance Plan
|
|
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
|
||
101.INS
|
XBRL Instance Document (1)
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (1)
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (1)
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document (1)
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (1)
|
|
SOUTHWEST AIRLINES CO.
|
|
July 23, 2009
|
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 (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 January 15,
|
|
2009 (incorporated by reference to Exhibit 3.1 to Southwest’s Current Report
|
||
on Form 8-K dated January 15, 2009 (File No. 1-7259)).
|
||
10.1
|
Southwest Airlines Co. Amended and Restated Director Severance Plan
|
|
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
|
||
101.INS
|
XBRL Instance Document (1)
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (1)
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (1)
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document (1)
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (1)
|
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
|
|