þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended March 31, 2013
|
|
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)
|
Large accelerated filer
þ
|
Accelerated filer
¨
|
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
¨
|
PART I - FINANCIAL INFORMATION
|
||
|
Item 1. Financial Statements
|
|
|
|
Condensed Consolidated Balance Sheet as of March 31, 2013 and December 31, 2012
|
|
|
Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2013 and 2012
|
|
|
Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2013 and 2012
|
|
|
Notes to Condensed Consolidated Financial Statements
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
|
|
Item 4. Controls and Procedures
|
|
PART II – OTHER INFORMATION
|
||
|
Item 1. Legal Proceedings
|
|
|
Item 1A. Risk Factors
|
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
Item 3. Defaults Upon Senior Securities
|
|
|
Item 4. Mine Safety Disclosures
|
|
|
Item 5. Other Information
|
|
|
Item 6. Exhibits
|
|
SIGNATURES
|
||
EXHIBIT INDEX
|
|
March 31, 2013
|
|
December 31, 2012
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,338
|
|
|
$
|
1,113
|
|
Short-term investments
|
1,797
|
|
|
1,857
|
|
||
Accounts and other receivables
|
429
|
|
|
332
|
|
||
Inventories of parts and supplies, at cost
|
480
|
|
|
469
|
|
||
Deferred income taxes
|
255
|
|
|
246
|
|
||
Prepaid expenses and other current assets
|
215
|
|
|
210
|
|
||
Total current assets
|
4,514
|
|
|
4,227
|
|
||
|
|
|
|
||||
Property and equipment, at cost:
|
|
|
|
|
|
||
Flight equipment
|
16,643
|
|
|
16,367
|
|
||
Ground property and equipment
|
2,754
|
|
|
2,714
|
|
||
Deposits on flight equipment purchase contracts
|
594
|
|
|
416
|
|
||
|
19,991
|
|
|
19,497
|
|
||
Less allowance for depreciation and amortization
|
6,861
|
|
|
6,731
|
|
||
|
13,130
|
|
|
12,766
|
|
||
Goodwill
|
970
|
|
|
970
|
|
||
Other assets
|
583
|
|
|
633
|
|
||
|
$
|
19,197
|
|
|
$
|
18,596
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
1,250
|
|
|
$
|
1,107
|
|
Accrued liabilities
|
1,004
|
|
|
1,102
|
|
||
Air traffic liability
|
2,877
|
|
|
2,170
|
|
||
Current maturities of long-term debt
|
280
|
|
|
271
|
|
||
Total current liabilities
|
5,411
|
|
|
4,650
|
|
||
|
|
|
|
||||
Long-term debt less current maturities
|
2,708
|
|
|
2,883
|
|
||
Deferred income taxes
|
2,904
|
|
|
2,884
|
|
||
Deferred gains from sale and leaseback of aircraft
|
60
|
|
|
63
|
|
||
Other noncurrent liabilities
|
1,153
|
|
|
1,124
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Common stock
|
808
|
|
|
808
|
|
||
Capital in excess of par value
|
1,214
|
|
|
1,210
|
|
||
Retained earnings
|
5,818
|
|
|
5,768
|
|
||
Accumulated other comprehensive loss
|
(111
|
)
|
|
(119
|
)
|
||
Treasury stock, at cost
|
(768
|
)
|
|
(675
|
)
|
||
Total stockholders' equity
|
6,961
|
|
|
6,992
|
|
||
|
$
|
19,197
|
|
|
$
|
18,596
|
|
|
Three months ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
OPERATING REVENUES:
|
|
|
|
||||
Passenger
|
$
|
3,838
|
|
|
$
|
3,751
|
|
Freight
|
39
|
|
|
37
|
|
||
Other
|
207
|
|
|
203
|
|
||
Total operating revenues
|
4,084
|
|
|
3,991
|
|
||
|
|
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
|
||
Salaries, wages, and benefits
|
1,183
|
|
|
1,141
|
|
||
Fuel and oil
|
1,457
|
|
|
1,510
|
|
||
Maintenance materials and repairs
|
291
|
|
|
272
|
|
||
Aircraft rentals
|
93
|
|
|
88
|
|
||
Landing fees and other rentals
|
266
|
|
|
254
|
|
||
Depreciation and amortization
|
210
|
|
|
201
|
|
||
Acquisition and integration
|
13
|
|
|
13
|
|
||
Other operating expenses
|
501
|
|
|
490
|
|
||
Total operating expenses
|
4,014
|
|
|
3,969
|
|
||
|
|
|
|
||||
OPERATING INCOME
|
70
|
|
|
22
|
|
||
|
|
|
|
||||
OTHER EXPENSES (INCOME):
|
|
|
|
|
|
||
Interest expense
|
29
|
|
|
40
|
|
||
Capitalized interest
|
(5
|
)
|
|
(5
|
)
|
||
Interest income
|
(2
|
)
|
|
(2
|
)
|
||
Other gains, net
|
(46
|
)
|
|
(170
|
)
|
||
Total other income
|
(24
|
)
|
|
(137
|
)
|
||
|
|
|
|
||||
INCOME BEFORE INCOME TAXES
|
94
|
|
|
159
|
|
||
PROVISION FOR INCOME TAXES
|
35
|
|
|
61
|
|
||
|
|
|
|
||||
NET INCOME
|
$
|
59
|
|
|
$
|
98
|
|
|
|
|
|
||||
NET INCOME PER SHARE, BASIC
|
$
|
0.08
|
|
|
$
|
0.13
|
|
|
|
|
|
||||
NET INCOME PER SHARE, DILUTED
|
$
|
0.08
|
|
|
$
|
0.13
|
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
$
|
67
|
|
|
$
|
265
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
||
Basic
|
725
|
|
|
771
|
|
||
Diluted
|
727
|
|
|
772
|
|
||
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
.0100
|
|
|
$
|
.0045
|
|
|
Three months ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
59
|
|
|
$
|
98
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
210
|
|
|
201
|
|
||
Unrealized gain on fuel derivative instruments
|
(21
|
)
|
|
(201
|
)
|
||
Deferred income taxes
|
2
|
|
|
14
|
|
||
Amortization of deferred gains on sale and leaseback of aircraft
|
(3
|
)
|
|
(3
|
)
|
||
Changes in certain assets and liabilities:
|
|
|
|
|
|
||
Accounts and other receivables
|
(97
|
)
|
|
(68
|
)
|
||
Other assets
|
(25
|
)
|
|
(51
|
)
|
||
Accounts payable and accrued liabilities
|
120
|
|
|
225
|
|
||
Air traffic liability
|
707
|
|
|
720
|
|
||
Cash collateral received from derivative counterparties
|
28
|
|
|
147
|
|
||
Other, net
|
3
|
|
|
143
|
|
||
Net cash provided by operating activities
|
983
|
|
|
1,225
|
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||
Payments for purchase of property and equipment, net
|
(534
|
)
|
|
(127
|
)
|
||
Purchases of short-term investments
|
(725
|
)
|
|
(621
|
)
|
||
Proceeds from sales of short-term investments
|
787
|
|
|
736
|
|
||
Net cash used in investing activities
|
(472
|
)
|
|
(12
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||
Proceeds from Employee stock plans
|
6
|
|
|
5
|
|
||
Payments of long-term debt and capital lease obligations
|
(164
|
)
|
|
(431
|
)
|
||
Payments of cash dividends
|
(15
|
)
|
|
(7
|
)
|
||
Repurchase of common stock
|
(100
|
)
|
|
(50
|
)
|
||
Other, net
|
(13
|
)
|
|
(1
|
)
|
||
Net cash used in financing activities
|
(286
|
)
|
|
(484
|
)
|
||
|
|
|
|
||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
225
|
|
|
729
|
|
||
|
|
|
|
||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,113
|
|
|
829
|
|
||
|
|
|
|
||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
1,338
|
|
|
$
|
1,558
|
|
|
|
|
|
||||
CASH PAYMENTS FOR:
|
|
|
|
||||
Interest, net of amount capitalized
|
$
|
41
|
|
|
$
|
47
|
|
Income taxes
|
$
|
2
|
|
|
$
|
1
|
|
|
Three months ended
March 31,
|
||||||
|
2013
|
|
2012
|
||||
NUMERATOR:
|
|
|
|
||||
Net income
|
$
|
59
|
|
|
$
|
98
|
|
|
|
|
|
||||
DENOMINATOR:
|
|
|
|
|
|
||
Weighted-average shares outstanding, basic
|
725
|
|
|
771
|
|
||
Dilutive effect of Employee stock options and restricted stock units
|
2
|
|
|
1
|
|
||
Adjusted weighted-average shares outstanding, diluted
|
727
|
|
|
772
|
|
||
|
|
|
|
||||
NET INCOME PER SHARE:
|
|
|
|
|
|
||
Basic
|
$
|
0.08
|
|
|
$
|
0.13
|
|
Diluted
|
$
|
0.08
|
|
|
$
|
0.13
|
|
|
|
|
|
||||
Potentially dilutive amounts excluded from calculations:
|
|
|
|
|
|
||
Stock options and restricted stock units
|
17
|
|
|
44
|
|
||
5.25% convertible notes
|
6
|
|
|
6
|
|
|
|
Fuel hedged as of
|
|
|
|
|
|
March 31, 2013
|
|
Hedged commodity type as of
|
|
Period (by year)
|
|
(gallons in millions)
(a)
|
|
March 31, 2013
|
|
Remainder of 2013
|
|
1,118
|
|
|
Brent crude oil and Gulf Coast jet fuel
|
2014
|
|
1,444
|
|
|
WTI crude and Brent crude oil
|
2015
|
|
597
|
|
|
WTI crude and Brent crude oil
|
2016
|
|
886
|
|
|
Brent crude oil
|
2017
|
|
619
|
|
|
WTI crude and Brent crude oil
|
|
|
|
|
Asset derivatives
|
|
Liability derivatives
|
||||||||||||
|
|
Balance Sheet
|
|
Fair value at
|
|
Fair value at
|
|
Fair value at
|
|
Fair value at
|
||||||||
(in millions)
|
|
location
|
|
3/31/2013
|
|
12/31/2012
|
|
3/31/2013
|
|
12/31/2012
|
||||||||
Derivatives designated as hedges*
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivative contracts (gross)
|
|
Prepaid expenses and other current assets
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fuel derivative contracts (gross)
|
|
Other assets
|
|
292
|
|
|
355
|
|
|
10
|
|
|
16
|
|
||||
Interest rate derivative contracts
|
|
Other assets
|
|
29
|
|
|
31
|
|
|
—
|
|
|
—
|
|
||||
Interest rate derivative contracts
|
|
Other noncurrent liabilities
|
|
—
|
|
|
—
|
|
|
115
|
|
|
126
|
|
||||
Total derivatives designated as hedges
|
|
$
|
363
|
|
|
$
|
386
|
|
|
$
|
125
|
|
|
$
|
142
|
|
||
Derivatives not designated as hedges*
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivative contracts (gross)
|
|
Prepaid expenses and other current assets
|
|
$
|
259
|
|
|
$
|
375
|
|
|
$
|
261
|
|
|
$
|
327
|
|
Fuel derivative contracts (gross)
|
|
Other assets
|
|
112
|
|
|
233
|
|
|
222
|
|
|
351
|
|
||||
Fuel derivative contracts (gross)
|
|
Accrued liabilities
|
|
—
|
|
|
10
|
|
|
—
|
|
|
60
|
|
||||
Fuel derivative contracts (gross)
|
|
Other noncurrent liabilities
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Total derivatives not designated as hedges
|
|
|
|
$
|
371
|
|
|
$
|
618
|
|
|
$
|
495
|
|
|
$
|
738
|
|
Total derivatives
|
|
|
|
$
|
734
|
|
|
$
|
1,004
|
|
|
$
|
620
|
|
|
$
|
880
|
|
|
|
Balance Sheet
|
|
March 31,
|
|
December 31,
|
||||
(in millions)
|
|
location
|
|
2013
|
|
2012
|
||||
Cash collateral deposits provided to counterparties for interest
rate contracts - noncurrent
|
|
Offset against Other noncurrent liabilities
|
|
$
|
61
|
|
|
$
|
89
|
|
Receivable from third parties for fuel contracts - noncurrent
|
|
Other assets
|
|
54
|
|
|
54
|
|
||
Prepaid settlements for fuel contracts - current
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
15
|
|
Offsetting of Derivative Liabilities
|
||||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||
|
|
|
|
(i)
|
|
(ii)
|
|
(iii) = (i) + (ii)
|
|
(i)
|
|
(ii)
|
|
(iii) = (i) + (ii)
|
||||||||||||
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
Description
|
|
Balance Sheet location
|
|
Gross amounts of recognized liabilities
|
|
Gross amounts offset in the Balance Sheet
|
|
Net amounts of liabilities presented in the Balance Sheet
|
|
Gross amounts of recognized liabilities
|
|
Gross amounts offset in the Balance Sheet
|
|
Net amounts of liabilities presented in the Balance Sheet
|
||||||||||||
Fuel derivative contracts
|
|
Prepaid expenses and other current assets
|
|
$
|
261
|
|
|
$
|
(261
|
)
|
|
$
|
—
|
|
|
$
|
327
|
|
|
$
|
(327
|
)
|
|
$
|
—
|
|
Fuel derivative contracts
|
|
Other assets
|
|
$
|
232
|
|
|
$
|
(232
|
)
|
|
$
|
—
|
|
|
$
|
367
|
|
|
$
|
(367
|
)
|
|
$
|
—
|
|
Fuel derivative contracts
|
|
Accrued liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
(10
|
)
|
|
$
|
50
|
|
Fuel derivative contracts
|
|
Other noncurrent liabilities
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate derivative contracts
|
|
Other noncurrent liabilities
|
|
$
|
115
|
|
|
$
|
(61
|
)
|
|
$
|
54
|
|
|
$
|
126
|
|
|
$
|
(89
|
)
|
|
$
|
37
|
|
|
Counterparty (CP)
|
|
|
||||||||||||||||||||||||||||
(in millions)
|
A
|
|
B
|
|
C
|
|
D
|
|
E
|
|
F
|
|
Other
(a)
|
|
Total
|
||||||||||||||||
Fair value of fuel derivatives
|
$
|
23
|
|
|
$
|
44
|
|
|
$
|
5
|
|
|
$
|
16
|
|
|
$
|
72
|
|
|
$
|
24
|
|
|
$
|
16
|
|
|
$
|
200
|
|
Cash collateral held (by) CP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Aircraft collateral pledged to CP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Letters of credit (LC)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Option to substitute LC for aircraft
|
(340) to (740)(d)
|
|
>(125)(d)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
||||||||||||||||
Option to substitute LC for cash
|
N/A
|
|
N/A
|
|
(100) to (150)(e)
|
|
N/A
|
|
>(50)(e)
|
|
N/A
|
|
|
|
|
||||||||||||||||
If credit rating is investment
grade, fair value of fuel
derivative level at which:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash is provided to CP
|
(40) to (340) or >(740)
|
|
0 to (125) or >(625)
|
|
>(50)
|
|
>(75)
|
|
>(50)
|
|
>(50)
|
|
|
|
|
||||||||||||||||
Cash is received from CP
|
>75
|
|
>150
|
|
>175(c)
|
|
>125(c)
|
|
>200
|
|
>30
|
|
|
|
|
||||||||||||||||
Aircraft or cash can be pledged to
CP as collateral
|
(340) to (740)(d)
|
|
(125) to (625)(d)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
||||||||||||||||
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash is provided to CP
|
(40) to (340) or >(740)
|
|
0 to (125) or >(625)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
|
|
|
||||||||||||||||
Cash is received from CP
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
|
|
|
||||||||||||||||
Aircraft can be pledged to CP as
collateral
|
(340) to (740)
|
|
(125) to (625)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
NET INCOME
|
$
|
59
|
|
|
$
|
98
|
|
Unrealized gain (loss) on fuel derivative instruments, net of
deferred taxes of ($1) and $99
|
(3
|
)
|
|
159
|
|
||
Unrealized gain on interest rate derivative instruments, net of
deferred taxes of $5 and $4
|
8
|
|
|
6
|
|
||
Other, net of deferred taxes of $2 and $2
|
3
|
|
|
2
|
|
||
Total other comprehensive income
|
$
|
8
|
|
|
$
|
167
|
|
COMPREHENSIVE INCOME
|
$
|
67
|
|
|
$
|
265
|
|
(in millions)
|
Fuel derivatives
|
|
Interest rate derivatives
|
|
Defined benefit pension items
|
|
Other
|
|
Accumulated other
comprehensive income (loss)
|
||||||||||
Balance at December 31, 2012
|
$
|
(63
|
)
|
|
$
|
(67
|
)
|
|
$
|
16
|
|
|
$
|
(5
|
)
|
|
$
|
(119
|
)
|
Changes in fair value
|
(29
|
)
|
|
3
|
|
|
—
|
|
|
3
|
|
|
(23
|
)
|
|||||
Reclassification to earnings
|
26
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|||||
Balance at March 31, 2013
|
$
|
(66
|
)
|
|
$
|
(59
|
)
|
|
$
|
16
|
|
|
$
|
(2
|
)
|
|
$
|
(111
|
)
|
Three months ended March 31, 2013
|
||||||
|
|
Amounts reclassified from AOCI
|
|
|
||
(in millions)
|
|
|
Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income
|
|||
AOCI components
|
|
|
||||
Unrealized gain on fuel derivative instruments
|
|
$
|
42
|
|
|
Fuel and oil expense
|
|
|
$
|
16
|
|
|
Less: Tax Expense
|
|
|
$
|
26
|
|
|
Net of tax
|
|
|
|
|
|
||
Unrealized gain on interest rate derivative instruments
|
|
$
|
8
|
|
|
Interest expense
|
|
|
$
|
3
|
|
|
Less: Tax Expense
|
|
|
$
|
5
|
|
|
Net of tax
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
31
|
|
|
Net of tax
|
|
March 31,
|
|
December 31,
|
||||
(in millions)
|
2013
|
|
2012
|
||||
Fuel derivative contracts
|
$
|
172
|
|
|
$
|
221
|
|
Interest rate derivative contracts
|
29
|
|
|
31
|
|
||
Receivable from third parties for fuel contracts - noncurrent
|
54
|
|
|
54
|
|
||
Intangible assets
|
132
|
|
|
138
|
|
||
Non-current investments
|
43
|
|
|
41
|
|
||
Other
|
153
|
|
|
148
|
|
||
Other assets
|
$
|
583
|
|
|
$
|
633
|
|
|
March 31,
|
|
December 31,
|
||||
(in millions)
|
2013
|
|
2012
|
||||
Retirement plans
|
$
|
144
|
|
|
$
|
135
|
|
Aircraft rentals
|
109
|
|
|
139
|
|
||
Vacation pay
|
275
|
|
|
270
|
|
||
Health
|
62
|
|
|
70
|
|
||
Fuel derivative contracts
|
—
|
|
|
50
|
|
||
Workers compensation
|
158
|
|
|
159
|
|
||
Accrued taxes
|
58
|
|
|
67
|
|
||
Other
|
198
|
|
|
212
|
|
||
Accrued liabilities
|
$
|
1,004
|
|
|
$
|
1,102
|
|
|
March 31,
|
|
December 31,
|
||||
(in millions)
|
2013
|
|
2012
|
||||
Postretirement obligation
|
$
|
154
|
|
|
$
|
148
|
|
Non-current lease-related obligations
|
349
|
|
|
376
|
|
||
Airport construction obligation
|
359
|
|
|
331
|
|
||
Other deferred compensation
|
144
|
|
|
141
|
|
||
Fuel derivative contracts
|
12
|
|
|
—
|
|
||
Interest rate derivative contracts
|
54
|
|
|
37
|
|
||
Other
|
81
|
|
|
91
|
|
||
Other non-current liabilities
|
$
|
1,153
|
|
|
$
|
1,124
|
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
|
|
|
|
Quoted prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
||||||||
Description
|
|
March 31, 2013
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets
|
|
(in millions)
|
||||||||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (a)
|
|
$
|
1,085
|
|
|
$
|
1,085
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial paper
|
|
240
|
|
|
—
|
|
|
240
|
|
|
—
|
|
||||
Certificates of deposit
|
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
|
||||||||
Treasury bills
|
|
1,560
|
|
|
1,560
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
|
237
|
|
|
—
|
|
|
237
|
|
|
—
|
|
||||
Noncurrent investments (b)
|
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
||||
Interest rate derivatives (see Note 5)
|
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
94
|
|
|
—
|
|
|
94
|
|
|
—
|
|
||||
Option contracts (c)
|
|
611
|
|
|
—
|
|
|
—
|
|
|
611
|
|
||||
Other available-for-sale securities
|
|
54
|
|
|
49
|
|
|
—
|
|
|
5
|
|
||||
Total assets
|
|
$
|
3,961
|
|
|
$
|
2,694
|
|
|
$
|
613
|
|
|
$
|
654
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
$
|
(93
|
)
|
|
$
|
—
|
|
|
$
|
(93
|
)
|
|
$
|
—
|
|
Option contracts (c)
|
|
(400
|
)
|
|
—
|
|
|
—
|
|
|
(400
|
)
|
||||
Option contracts (d)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||
Interest rate derivatives (see Note 5)
|
|
(115
|
)
|
|
—
|
|
|
(115
|
)
|
|
—
|
|
||||
Deferred compensation
|
|
(140
|
)
|
|
(140
|
)
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
|
$
|
(760
|
)
|
|
$
|
(140
|
)
|
|
$
|
(208
|
)
|
|
$
|
(412
|
)
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
|
|
|
|
Quoted prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
||||||||
Description
|
|
December 31, 2012
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets
|
|
(in millions)
|
||||||||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (a)
|
|
$
|
829
|
|
|
$
|
829
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial paper
|
|
170
|
|
|
—
|
|
|
170
|
|
|
—
|
|
||||
Certificates of deposit
|
|
34
|
|
|
—
|
|
|
34
|
|
|
—
|
|
||||
Eurodollar Time Deposits
|
|
80
|
|
|
—
|
|
|
80
|
|
|
—
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
|
||||||||
Treasury bills
|
|
1,624
|
|
|
1,624
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
|
233
|
|
|
—
|
|
|
233
|
|
|
—
|
|
||||
Noncurrent investments (b)
|
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||
Interest rate derivatives (see Note 5)
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
113
|
|
|
—
|
|
|
113
|
|
|
—
|
|
||||
Option contracts (c)
|
|
850
|
|
|
—
|
|
|
—
|
|
|
850
|
|
||||
Option contracts (d)
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Other available-for-sale securities
|
|
49
|
|
|
44
|
|
|
—
|
|
|
5
|
|
||||
Total assets
|
|
$
|
4,059
|
|
|
$
|
2,497
|
|
|
$
|
661
|
|
|
$
|
901
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
$
|
(57
|
)
|
|
$
|
—
|
|
|
$
|
(57
|
)
|
|
$
|
—
|
|
Option contracts (c)
|
|
(637
|
)
|
|
—
|
|
|
—
|
|
|
(637
|
)
|
||||
Swap contracts (d)
|
|
(56
|
)
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
||||
Option contracts (d)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Interest rate derivatives (see Note 5)
|
|
(126
|
)
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
||||
Deferred Compensation
|
|
(137
|
)
|
|
(137
|
)
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
|
$
|
(1,017
|
)
|
|
$
|
(137
|
)
|
|
$
|
(239
|
)
|
|
$
|
(641
|
)
|
|
Fair value measurements using significant
unobservable inputs (Level 3)
|
||||||||||||||
|
Fuel
|
|
Auction rate
|
|
Other
|
|
|
||||||||
(in millions)
|
derivatives
|
|
securities
|
|
securities
|
|
Total
|
||||||||
Balance at December 31, 2012
|
$
|
219
|
|
|
$
|
36
|
|
|
$
|
5
|
|
|
$
|
260
|
|
Total gains or (losses) (realized or unrealized)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Included in earnings
|
27
|
|
|
—
|
|
|
—
|
|
|
27
|
|
||||
Included in other comprehensive income
|
(46
|
)
|
|
2
|
|
|
—
|
|
|
(44
|
)
|
||||
Purchases
|
189
|
|
(a)
|
—
|
|
|
—
|
|
|
189
|
|
||||
Sales
|
(213
|
)
|
(a)
|
—
|
|
|
—
|
|
|
(213
|
)
|
||||
Settlements
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
||||
Balance at March 31, 2013
|
$
|
199
|
|
|
$
|
38
|
|
(b)
|
$
|
5
|
|
|
$
|
242
|
|
The amount of total losses for the period
included in earnings attributable to the
change in unrealized gains or losses relating
to assets still held at March 31, 2013
|
$
|
(49
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(49
|
)
|
(in millions)
|
Carrying value
|
|
Estimated fair value
|
|
Fair value level hierarchy
|
||
5.25% Notes due 2014
|
364
|
|
|
374
|
|
|
Level 2
|
5.75% Notes due 2016
|
329
|
|
|
363
|
|
|
Level 2
|
5.25% Convertible Senior Notes due 2016
|
116
|
|
|
146
|
|
|
Level 2
|
5.125% Notes due 2017
|
328
|
|
|
357
|
|
|
Level 2
|
Fixed-rate 717 Aircraft Notes payable through 2017 - 10.36%
|
57
|
|
|
55
|
|
|
Level 2
|
French Credit Agreements due 2018 - 1.21%
|
56
|
|
|
56
|
|
|
Level 3
|
Fixed-rate 737 Aircraft Notes payable through 2018 - 7.02%
|
34
|
|
|
36
|
|
|
Level 3
|
Term Loan Agreement due 2019 - 6.315%
|
233
|
|
|
236
|
|
|
Level 3
|
Term Loan Agreement due 2019 - 6.84%
|
90
|
|
|
98
|
|
|
Level 3
|
Term Loan Agreement due 2020 - 5.223%
|
442
|
|
|
410
|
|
|
Level 3
|
Floating-rate 737 Aircraft Notes payable through 2020
|
388
|
|
|
381
|
|
|
Level 3
|
Pass Through Certificates due 2022 - 6.24%
|
385
|
|
|
452
|
|
|
Level 2
|
7.375% Debentures due 2027
|
138
|
|
|
154
|
|
|
Level 2
|
|
|
Three months ended March 31,
|
|
|
|
|||||
|
|
2013
|
|
2012
|
|
Change
|
||||
Revenue passengers carried
|
|
25,203,934
|
|
|
25,560,822
|
|
|
(1.4
|
)%
|
|
Enplaned passengers
|
|
30,712,625
|
|
|
31,154,453
|
|
|
(1.4
|
)%
|
|
Revenue passenger miles (RPMs) (000s)
(1)
|
|
23,756,743
|
|
|
23,684,869
|
|
|
0.3
|
%
|
|
Available seat miles (ASMs) (000s)
(2)
|
|
30,801,424
|
|
|
30,632,893
|
|
|
0.6
|
%
|
|
Load factor
(3)
|
|
77.1
|
%
|
|
77.3
|
%
|
|
(0.2
|
)%
|
pts
|
Average length of passenger haul (miles)
|
|
943
|
|
|
927
|
|
|
1.7
|
%
|
|
Average aircraft stage length (miles)
|
|
693
|
|
|
685
|
|
|
1.2
|
%
|
|
Trips flown
|
|
318,514
|
|
|
333,896
|
|
|
(4.6
|
)%
|
|
Average passenger fare
|
|
152.29
|
|
|
146.72
|
|
|
3.8
|
%
|
|
Passenger revenue yield per RPM (cents)
(4)
|
|
16.16
|
|
|
15.83
|
|
|
2.1
|
%
|
|
Operating revenue per ASM (cents)
(5)
|
|
13.26
|
|
|
13.03
|
|
|
1.8
|
%
|
|
Passenger revenue per ASM (cents)
(6)
|
|
12.46
|
|
|
12.24
|
|
|
1.8
|
%
|
|
Operating expenses per ASM (cents)
(7)
|
|
13.03
|
|
|
12.96
|
|
|
0.5
|
%
|
|
Operating expenses per ASM, excluding fuel (cents)
|
|
8.30
|
|
|
8.03
|
|
|
3.4
|
%
|
|
Operating expenses per ASM, excluding fuel and profitsharing (cents)
|
|
8.25
|
|
|
8.03
|
|
|
2.7
|
%
|
|
Fuel costs per gallon, including fuel tax
|
|
3.36
|
|
|
3.39
|
|
|
(0.9
|
)%
|
|
Fuel costs per gallon, including fuel tax, economic
|
|
3.29
|
|
|
3.44
|
|
|
(4.4
|
)%
|
|
Fuel consumed, in gallons (millions)
|
|
432
|
|
|
443
|
|
|
(2.5
|
)%
|
|
Active fulltime equivalent Employees
|
|
45,791
|
|
|
46,227
|
|
|
(0.9
|
)%
|
|
Aircraft in service at period-end
(8)
|
|
696
|
|
|
694
|
|
|
0.3
|
%
|
|
|
Three months ended March 31,
|
|
Percent
|
|||||||
|
2013
|
|
2012
|
|
Change
|
|||||
Fuel and oil expense, unhedged
|
$
|
1,405
|
|
|
$
|
1,479
|
|
|
|
|
Add: Fuel hedge losses included in Fuel and oil expense
|
52
|
|
|
31
|
|
|
|
|||
Fuel and oil expense, as reported
|
$
|
1,457
|
|
|
$
|
1,510
|
|
|
|
|
Add (Deduct): Net impact from fuel contracts
|
(29
|
)
|
|
25
|
|
|
|
|||
Fuel and oil expense, non-GAAP
|
$
|
1,428
|
|
|
$
|
1,535
|
|
|
(7.0
|
)%
|
|
|
|
|
|
|
|||||
Total operating expenses, as reported
|
$
|
4,014
|
|
|
$
|
3,969
|
|
|
|
|
Deduct: Reclassification between Fuel and oil and Other (gains), net,
associated with current period settled contracts
|
—
|
|
|
(2
|
)
|
|
|
|
||
Add (Deduct): Contracts settling in the current period, but for which
gains and/or (losses) have been recognized in a prior period*
|
(29
|
)
|
|
27
|
|
|
|
|
||
Deduct: Acquisition and integration costs
|
(13
|
)
|
|
(13
|
)
|
|
|
|
||
Total operating expenses, non-GAAP
|
$
|
3,972
|
|
|
$
|
3,981
|
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|||||
Operating income, as reported
|
$
|
70
|
|
|
$
|
22
|
|
|
|
|
Add: Reclassification between Fuel and oil and Other losses,
net, associated with current period settled contracts
|
—
|
|
|
2
|
|
|
|
|
||
Add (Deduct): Contracts settling in the current period, but for which
gains and/or (losses) have been recognized in a prior period*
|
29
|
|
|
(27
|
)
|
|
|
|
||
Add: Acquisition and integration costs
|
13
|
|
|
13
|
|
|
|
|
||
Operating income, non-GAAP
|
$
|
112
|
|
|
$
|
10
|
|
|
n/a
|
|
|
|
|
|
|
|
|||||
Net income, as reported
|
$
|
59
|
|
|
$
|
98
|
|
|
|
|
Deduct: Mark-to-market impact from fuel contracts
settling in future periods
|
(61
|
)
|
|
(205
|
)
|
|
|
|
||
Add: Ineffectiveness from fuel hedges settling in future periods
|
10
|
|
|
31
|
|
|
|
|
||
Add (Deduct): Other net impact of fuel contracts settling in the current or
a prior period (excluding reclassifications)
|
29
|
|
|
(27
|
)
|
|
|
|
||
Add: Income tax impact of fuel contracts
|
8
|
|
|
77
|
|
|
|
|
||
Add: Acquisition and integration costs, net (a)
|
8
|
|
|
8
|
|
|
|
|
||
Net income (loss), non-GAAP
|
$
|
53
|
|
|
$
|
(18
|
)
|
|
n/a
|
|
|
|
|
|
|
|
|||||
Net income per share, diluted, as reported
|
$
|
0.08
|
|
|
$
|
0.13
|
|
|
|
|
Deduct: Net impact to net income above from fuel contracts
divided by dilutive shares
|
(0.02
|
)
|
|
(0.16
|
)
|
|
|
|
||
Add: Impact of special items, net (a)
|
0.01
|
|
|
0.01
|
|
|
|
|
||
Net income (loss) per share, diluted, non-GAAP
|
$
|
0.07
|
|
|
$
|
(0.02
|
)
|
|
n/a
|
|
|
|
|
|
|
|
|||||
Operating expenses per ASM (cents)
|
13.03
|
|
|
12.96
|
|
|
|
|
||
Deduct: Fuel expense divided by ASMs
|
(4.73
|
)
|
|
(4.93
|
)
|
|
|
|
||
Deduct: Impact of special items
|
(0.04
|
)
|
|
(0.04
|
)
|
|
|
|
||
Operating expenses per ASM, non-GAAP, excluding fuel
and special items (cents)
|
8.26
|
|
|
7.99
|
|
|
3.4
|
%
|
|
|
Three months ended
|
|
|
|||||||
(in millions, except per share amounts)
|
|
March 31,
|
|
|
|||||||
GAAP
|
|
2013
|
|
2012
|
|
Percent Change
|
|||||
Operating income
|
|
70
|
|
|
22
|
|
|
218.2
|
|
||
Net income
|
|
$
|
59
|
|
|
$
|
98
|
|
|
(39.8
|
)
|
Net income per share, diluted
|
|
0.08
|
|
|
0.13
|
|
|
(38.5
|
)
|
||
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP
|
|
|
|
|
|
|
|||||
Operating income
|
|
112
|
|
|
10
|
|
|
n/a
|
|
||
Net income (loss)
|
|
$
|
53
|
|
|
$
|
(18
|
)
|
|
n/a
|
|
Net income (loss) per share, diluted
|
|
0.07
|
|
|
(0.02
|
)
|
|
n/a
|
|
1.
|
The complete integration of AirTran into Southwest's operations by the end of 2014;
|
2.
|
The continued growth of Southwest's Rapid Rewards frequent flyer program;
|
3.
|
The continued addition of the Boeing 737-800, a larger aircraft, within the Company's fleet;
|
4.
|
The modernization of the Company's entire fleet to produce both better revenue and cost efficiencies; and
|
5.
|
The design and building of a new reservations system and international capabilities.
|
|
Three months ended March 31,
|
|
Per-ASM
|
|
Percent
|
|||||||||
(in cents, except for percentages)
|
2013
|
|
2012
|
|
change
|
|
change
|
|||||||
Salaries, wages, and benefits
|
|
3.84
|
¢
|
|
|
3.73
|
¢
|
|
|
0.11
|
¢
|
|
2.9
|
%
|
Fuel and oil
|
4.73
|
|
|
4.93
|
|
|
(0.20
|
)
|
|
(4.1
|
)
|
|||
Maintenance materials
and repairs
|
0.94
|
|
|
0.89
|
|
|
0.05
|
|
|
5.6
|
|
|||
Aircraft rentals
|
0.30
|
|
|
0.29
|
|
|
0.01
|
|
|
3.4
|
|
|||
Landing fees and other rentals
|
0.86
|
|
|
0.83
|
|
|
0.03
|
|
|
3.6
|
|
|||
Depreciation and amortization
|
0.68
|
|
|
0.66
|
|
|
0.02
|
|
|
3.0
|
|
|||
Acquisition and integration
|
0.04
|
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|||
Other operating expenses
|
1.64
|
|
|
1.59
|
|
|
0.05
|
|
|
3.1
|
|
|||
Total
|
|
13.03
|
¢
|
|
|
12.96
|
¢
|
|
|
0.07
|
¢
|
|
0.5
|
%
|
|
|
Average percent of estimated fuel consumption
|
||||
|
|
covered by fuel derivative contracts at
|
||||
Period
|
|
varying WTI/Brent crude-equivalent price levels
|
||||
2013
|
|
Approx. 95%
|
||||
2014
|
|
Approx. 60%
|
||||
2015
|
|
Approx. 35%
|
||||
2016
|
|
Approx. 30%
|
||||
2017
|
|
Approx. 50%
|
Year
|
|
Fair value
(liability) of fuel
derivative contracts
at March 31, 2013
|
|
Amount of gains
(losses) deferred
in AOCI at March 31,
2013 (net of tax)
|
||||
Remainder of 2013
|
|
$
|
5
|
|
|
$
|
(66
|
)
|
2014
|
|
122
|
|
|
35
|
|
||
2015
|
|
23
|
|
|
(39
|
)
|
||
2016
|
|
63
|
|
|
2
|
|
||
2017
|
|
(13
|
)
|
|
—
|
|
||
Total
|
|
$
|
200
|
|
|
$
|
(68
|
)
|
|
Estimated difference in economic jet fuel price per gallon,
above/(below) unhedged market prices, including taxes
|
|
Average Brent crude oil
price per barrel
|
2Q 2013 (2)
|
Second half 2013
|
$80
|
$2.95 - $3.00
|
$2.90 - $2.95
|
$90
|
$2.95 - $3.00
|
$2.95 - $3.00
|
Current Market (1)
|
$3.00 - $3.05
|
$3.00 - $3.05
|
$110
|
$3.10 - $3.15
|
$3.20 - $3.25
|
$120
|
$3.15 - $3.20
|
$3.30 - $3.35
|
Estimated Premium Costs (3)
|
$12 million
|
$43 million
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
Mark-to-market impact from fuel contracts settling in future periods
|
$
|
(61
|
)
|
|
$
|
(205
|
)
|
Ineffectiveness from fuel hedges settling in future periods
|
10
|
|
|
31
|
|
||
Realized ineffectiveness and mark-to-market (gains) or losses
|
—
|
|
|
(2
|
)
|
||
Premium cost of fuel contracts
|
5
|
|
|
6
|
|
||
Other
|
—
|
|
|
—
|
|
||
|
$
|
(46
|
)
|
|
$
|
(170
|
)
|
|
The Boeing Company
737 NG
|
|
|
The Boeing Company
737 MAX
|
|
|
|||||||||||||
|
737-700 Firm
Orders
|
|
737-800 Firm
Orders
|
Options
|
Additional -700 A/C
|
|
Firm
Orders
|
|
Options
|
Total
|
|
||||||||
2013
|
—
|
|
|
18
|
|
—
|
|
2
|
|
|
—
|
|
|
—
|
|
20
|
|
(3)
|
|
2014
|
5
|
|
|
26
|
|
15
|
|
—
|
|
|
—
|
|
|
—
|
|
46
|
|
|
|
2015
|
36
|
|
|
—
|
|
12
|
|
—
|
|
|
—
|
|
|
—
|
|
48
|
|
|
|
2016
|
31
|
|
|
—
|
|
12
|
|
—
|
|
|
—
|
|
|
—
|
|
43
|
|
|
|
2017
|
30
|
|
|
—
|
|
25
|
|
—
|
|
|
4
|
|
|
—
|
|
59
|
|
|
|
2018
|
25
|
|
|
—
|
|
28
|
|
—
|
|
|
15
|
|
|
—
|
|
68
|
|
|
|
2019
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
33
|
|
|
—
|
|
33
|
|
|
|
2020
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
34
|
|
|
—
|
|
34
|
|
|
|
2021
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
34
|
|
|
18
|
|
52
|
|
|
|
2022
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
30
|
|
|
19
|
|
49
|
|
|
|
2023
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
23
|
|
23
|
|
|
|
2024
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
23
|
|
23
|
|
|
|
2025
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
23
|
|
23
|
|
|
|
Through 2027
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
44
|
|
44
|
|
|
|
Total
|
127
|
|
(1)
|
44
|
|
92
|
|
2
|
|
|
150
|
|
(2
|
)
|
150
|
|
565
|
|
|
|
|
|
|
Average
|
|
Number
|
|
Number
|
|
Number
|
||||
Type
|
|
Seats
|
|
Age (Yrs)
|
|
of Aircraft
|
|
Owned
|
|
Leased
|
||||
717-200
|
|
117
|
|
12
|
|
|
88
|
|
|
8
|
|
|
80
|
|
737-300
|
|
137
|
|
20
|
|
|
125
|
|
|
75
|
|
|
50
|
|
737-500
|
|
122
|
|
22
|
|
|
19
|
|
|
10
|
|
|
9
|
|
737-700
|
|
137 or 143
|
|
9
|
|
|
424
|
|
|
379
|
|
|
45
|
|
737-800
|
|
175
|
|
1
|
|
|
40
|
|
|
35
|
|
|
5
|
|
TOTALS
|
|
|
|
|
|
696
|
|
|
507
|
|
|
189
|
|
•
|
the Company's strategic initiatives and its related financial and operational goals and expectations;
|
•
|
the integration of AirTran and the Company's related financial and operational goals and expectations, including, without limitation, anticipated integration timeframes and expected benefits and costs associated with the integration;
|
•
|
the Company's fleet plans, including its fleet modernization plans and expectations;
|
•
|
the Company's network plans, opportunities, and expectations;
|
•
|
the Company's plans and expectations with respect to international operations;
|
•
|
the Company's financial outlook and targets and projected results of operations;
|
•
|
the Company's plans and expectations with respect to managing risk associated with changing jet fuel prices;
|
•
|
the Company's expectations with respect to liquidity and capital expenditures, including anticipated needs for, and sources of, funds;
|
•
|
the Company's assessment of market risks; and
|
•
|
the Company's plans and expectations related to legal proceedings.
|
•
|
the impact of the economy on demand for the Company's services and the impact of fuel prices, economic conditions, and actions of competitors (including, without limitation, pricing, scheduling, and capacity decisions and consolidation and alliance activities) on the Company's business decisions, plans, and strategies;
|
•
|
the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives;
|
•
|
the Company's ability to effectively integrate AirTran and realize the expected synergies and other benefits from the acquisition;
|
•
|
the Company's ability to timely and effectively prioritize its strategic initiatives and related expenditures;
|
•
|
the Company's dependence on third parties with respect to certain of its initiatives, in particular its fleet initiatives;
|
•
|
changes in the price of aircraft fuel, the impact of hedge accounting, and any changes to the Company's fuel hedging strategies and positions;
|
•
|
actual or potential disruptions in the air traffic control system (including, without limitation, as a result of potential FAA budget cuts due to government sequestration); and
|
•
|
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, 2012.
|
Issuer Purchases of Equity Securities (1)
|
||||||||||||||
|
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
||||||
|
|
|
|
|
|
Total number of
|
|
Maximum dollar
|
||||||
|
|
|
|
|
|
shares purchased
|
|
value of shares that
|
||||||
|
|
Total number
|
|
Average
|
|
as part of publicly
|
|
may yet be purchased
|
||||||
|
|
of shares
|
|
price paid
|
|
announced plans
|
|
under the plans
|
||||||
Period
|
|
purchased
|
|
per share
|
|
or programs
|
|
or programs
|
||||||
January 1, 2013 through
|
|
|
|
|
|
|
|
|
||||||
January 31, 2013
|
|
3,200,000
|
|
|
$
|
11.34
|
|
|
3,200,000
|
|
|
$
|
338,719,348
|
|
February 1, 2013 through
|
|
|
|
|
|
|
|
|
||||||
February 28, 2013
|
|
5,570,988
|
|
|
$
|
11.43
|
|
|
5,570,988
|
|
|
$
|
275,015,838
|
|
March 1, 2013 through
|
|
|
|
|
|
|
|
|
||||||
March 31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
275,015,838
|
|
Total
|
|
8,770,988
|
|
|
|
|
8,770,988
|
|
|
|
(1)
|
In January 2008, the Company’s Board of Directors authorized the repurchase of up to $500 million of the Company’s common stock. Through February 15, 2008, the Company had repurchased 4.4 million shares for a total of approximately $54 million, at which time repurchases under the program were suspended. On August 5, 2011, the Company’s Board of Directors authorized the Company to resume a share repurchase program and approved the Company’s repurchase, on a discretionary basis, of a total of up to $500 million of the Company’s common stock following such authorization. On May 16, 2012, the Company’s Board of Directors increased the previous share repurchase authorization by an additional $500 million. Repurchases are made in accordance with applicable securities laws in the open market or in private transactions from time to time, depending on market conditions, and may be discontinued at any time.
|
3.1
|
Restated Certificate of Formation of the Company, effective May 18, 2012 (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (File No. 1-7259)).
|
3.2
|
Amended and Restated Bylaws of the Company, effective November 19, 2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 19, 2009 (File No. 1-7259)).
|
10.1
|
Supplemental Agreement No. 80 to Purchase Agreement No. 1810, dated January 19, 1994, between The Boeing Company and the Company. (1)
|
10.2
|
Supplemental Agreement No. 81 to Purchase Agreement No. 1810, dated January 19, 1994, between The Boeing Company and the Company. (1)
|
10.3
|
$1,000,000,000 Revolving Credit Facility Agreement among the Company, The Banks Party thereto, Morgan Stanley Senior Funding, Inc., as Syndication Agent, Bank of America, N.A., Barclays Bank PLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, and Wells Fargo Bank, N.A., as Documentation Agents, Citibank, N.A. and JPMorgan Chase Bank, N.A., as Co-Administrative Agents, and Citibank, N.A., as Paying Agent, dated as of April 2, 2013 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 2, 2013 (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. (2)
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.
|
(2)
|
Furnished, not filed.
|
|
SOUTHWEST AIRLINES CO.
|
|
|
|
|
May 2, 2013
|
By
|
/s/ Tammy Romo
|
|
|
|
|
|
Tammy Romo
|
|
|
Chief Financial Officer
|
|
|
(On behalf of the Registrant and in
|
|
|
her capacity as Principal Financial
|
|
|
and Accounting Officer)
|
3.1
|
Restated Certificate of Formation of the Company, effective May 18, 2012 (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (File No. 1-7259)).
|
3.2
|
Amended and Restated Bylaws of the Company, effective November 19, 2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 19, 2009 (File No. 1-7259)).
|
10.1
|
Supplemental Agreement No. 80 to Purchase Agreement No. 1810, dated January 19, 1994, between The Boeing Company and the Company. (1)
|
10.2
|
Supplemental Agreement No. 81 to Purchase Agreement No. 1810, dated January 19, 1994, between The Boeing Company and the Company. (1)
|
10.3
|
$1,000,000,000 Revolving Credit Facility Agreement among the Company, The Banks Party thereto, Morgan Stanley Senior Funding, Inc., as Syndication Agent, Bank of America, N.A., Barclays Bank PLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, and Wells Fargo Bank, N.A., as Documentation Agents, Citibank, N.A. and JPMorgan Chase Bank, N.A., as Co-Administrative Agents, and Citibank, N.A., as Paying Agent, dated as of April 2, 2013 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 2, 2013 (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. (2)
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.
|
(2)
|
Furnished, not filed.
|
Supplemental Agreement No. 80
|
|
to
|
|
Purchase Agreement No. 1810
|
|
between
|
|
THE BOEING COMPANY
|
|
and
|
|
SOUTHWEST AIRLINES CO.
|
|
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft
|
P.A. No. 1810
|
SA-80-
1
|
THE BOEING COMPANY
|
SOUTHWEST AIRLINES CO.
|
By:
/s/ Jeff Solomon
|
By:
/s/ Tammy Romo
________________
|
Its:
Attorney‑In‑Fact
|
Its:
Sr VP Finance & CFO
____________
|
P.A. No. 1810
|
SA-80-
2
|
TABLE OF CONTENTS
|
|
|
|
Page
|
SA
|
|
Number
|
Number
|
1.
|
Subject Matter of Sale
|
1-1
|
SA-75
|
|
|
|
|
2.
|
Delivery, Title and Risk
|
|
|
|
of Loss
|
2-1
|
SA-28
|
|
|
|
|
3.
|
Price of Aircraft
|
3‑1
|
SA-75
|
|
|
|
|
4.
|
Taxes
|
4-1
|
|
|
|
|
|
5.
|
Payment
|
5‑1
|
|
|
|
|
|
6.
|
Excusable Delay
|
6‑1
|
|
|
|
|
|
7.
|
Changes to the Detail
|
|
|
|
Specification
|
7-1
|
SA-73
|
|
|
|
|
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
|
|
P.A. No. 1810
|
i
|
|
K/SWA
|
|
SA-80
|
|
TABLE OF CONTENTS
|
|
|
|
SA
|
|
|
Number
|
1.
|
Aircraft Information Table
|
SA-75
|
1a
|
Aircraft Information Table – Block 700LUV Aircraft
|
SA-77
|
1b
|
Aircraft Information Table – Block 800LUV Aircraft
|
SA-80
|
A-4
|
Aircraft Configuration - 737-700 Block T-W-2b Aircraft
|
SA-66
|
||
|
|
|
|
|
A-5
|
Aircraft Configuration – Block 700LUV Aircraft
|
SA-75
|
||
|
|
|
|
|
A-6
|
Aircraft Configuration – Block 800LUV Aircraft
|
SA-75
|
||
|
|
|
|
|
B
|
***
|
SA-75
|
||
|
|
|
|
|
C
|
Customer Support Document
|
|
|
|
|
|
|
|
|
C-2
|
737-800 Customer Support Document
|
SA-75
|
||
|
|
|
|
|
D
|
Price Adjustment Due to
|
|
|
|
|
Economic Fluctuations – Aircraft Price Adjustment
|
|
||
|
(July 1992 Base Price)
|
|
|
|
|
|
|
|
|
D-1
|
Price Adjustment Due to
|
|
|
SA-13
|
|
Economic Fluctuations – Aircraft Price Adjustment
|
|
||
|
(July 1999 Base Price)
|
|
|
|
|
|
|
|
|
D-2
|
Economic Price Adjustment
|
|
|
SA-75
|
|
ECI-MFG/CPI (July 2011 Base Price)
|
|
||
|
|
|
|
|
E
|
Buyer Furnished Equipment
|
|
|
SA-75
|
|
Provisions Document
|
|
|
|
|
Attachment A – 737-7H4 Aircraft (through 2012)
|
|
||
|
Attachment B – 737-8H4 Aircraft (2012-2018)
|
SA-77
|
||
|
|
|
|
|
F
|
Defined Terms Document
|
|
|
|
1810-1R1
|
Waiver of Aircraft Demonstration Flight
|
SA-75
|
P.A. No. 1810
|
ii
|
|
K/SWA
|
|
SA-80
|
|
TABLE OF CONTENTS
|
|
|
|
SA
|
|
|
Number
|
P.A. No. 1810
|
iii
|
|
K/SWA
|
|
SA-80
|
|
TABLE OF CONTENTS
|
|
|
|
SA
|
|
|
Number
|
SWA-PA-1810-LA-1105885 ***
|
SA-75
|
||
|
|
|
|
SWA-PA-1810-LA-1105886 ***
|
SA-75
|
||
|
|
|
|
|
|
|
|
SWA-PA-1810-LA-1105887 ***
|
SA-75
|
||
|
|
|
|
|
|
|
|
SWA-PA-1810-LA-1105888
|
***
|
SA-78
|
|
|
|
|
|
SWA-PA-1810-LA-1105889
|
***
|
SA-75
|
Table
|
Title
|
Last Updated under SA
|
Current Status
|
2
|
Option Aircraft Information Table
|
SA-74
|
Deleted under SA-75
|
Exhibits
|
Title
|
Last Updated under SA
|
Current Status
|
A
|
Aircraft Configuration – 737-700
|
SA-36
|
Inactive
|
A-Winglet
|
Aircraft Configuration
|
SA-36
|
Inactive
|
A-1-Winglet
|
Aircraft Configuration
|
SA-36
|
Inactive
|
A-1A
|
Aircraft Configuration - 737-700
Block T-W-2c
|
SA-36
|
Inactive
|
P.A. No. 1810
|
iv
|
|
K/SWA
|
|
SA-80
|
|
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
Exhibits
|
Title
|
Last Updated under SA
|
Current Status
|
A-2
|
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
|
SA-47
|
Inactive
|
A-3
|
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
|
SA-61
|
Inactive
|
C.2
|
737-800 Customer Support Variables
|
SA-71
|
Deleted under SA-75
|
E.2
|
737-800 Buyer Furnished Equipment Provisions Document
|
SA-73
|
Deleted under SA-75
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
6‑1162‑RLL‑933R21
|
Option Aircraft
|
SA-60
|
Deleted under SA-75
|
6‑1162‑RLL‑935R1
|
Performance Guarantees
|
SA-1
|
Inactive
|
6‑1162‑RLL‑936R4
|
Certain Contractual Matters
|
SA-4
|
Inactive
|
6‑1162‑RLL‑937
|
Alternate Advance Payment Schedule
|
|
Inactive
|
6‑1162‑RLL‑938
|
***
|
|
Inactive
|
6‑1162‑RLL‑939R1
|
Certification Flight Test Aircraft
|
SA-1
|
Inactive
|
6‑1162‑RLL‑940R1
|
Training Matters
|
SA-1
|
Inactive
|
6‑1162‑RLL‑942
|
Open Configuration Matters
|
|
Inactive
|
6‑1162‑RLL‑943R1
|
Substitution Rights
|
SA-6
|
Deleted under SA 75
|
6‑1162‑RLL‑944
|
***
|
|
Inactive
|
6-1162-RLL-945
|
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
|
|
Inactive
|
6-1162-RLL-1855R3
|
Additional Contractual Matters
|
SA-4
|
Inactive
|
6-1162-RLL-1856
|
***
|
SA-1
|
Inactive
|
6-1162-RLL-1857
|
Service Ready Validation Program Field Test
|
SA-1
|
Inactive
|
6-1162-RLL-1858R1
|
Escalation Matters
|
SA-4
|
Inactive
|
6-1162-RLL-2036
|
Amortization of Costs for Customer Unique Changes
|
SA-1
|
Inactive
|
6-1162-RLL-2037
|
Reconciliation of the Aircraft Basic Price
|
SA-1
|
Inactive
|
P.A. No. 1810
|
v
|
|
K/SWA
|
|
SA-80
|
|
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
6-1162-RLL-2073
|
Maintenance Training Matters
|
SA-1
|
Inactive
|
6-1162-KJJ-058R1
|
Additional Substitution Rights
|
SA-71
|
Deleted under SA-75
|
6-1162-KJJ-150
|
Flight Control Computer & Mode Control Panel Spares Matter
|
SA-14
|
Inactive
|
6-1162-MSA-185R3
|
Delivery Change Contractual Matters
|
SA-21
|
Inactive
|
6-1162-JMG-747R1
|
***
|
SA-36
|
Inactive
|
6-1162-CHL-217
|
Rescheduled Flight Test Aircraft
|
SA-32
|
Inactive
|
6-1162-NIW-606R1
|
***
|
SA-36
|
Inactive
|
6-1162-NIW-640
|
Early Delivery of Two April 2004 Aircraft
|
SA-35
|
Inactive
|
6-1162-NIW-889
|
Warranty - Exterior Color Schemes and Markings for YA143 and on
|
SA-39
|
Inactive
|
6-1162-NIW-1142
|
***
|
SA-43
|
Inactive
|
6-1162-NIW-1369
|
***
|
SA-46
|
Inactive
|
6-1162-NIW-1983
|
***
|
SA-62
|
Inactive
|
SWA-PA-1810-LA-1000419
|
***
|
SA-64
|
Inactive
|
P.A. No. 1810
|
vi
|
|
K/SWA
|
|
SA-80
|
Table 1b to
|
Purchase Agreement No. PA-01810
|
Aircraft Delivery, Description, Price and Advance Payments
|
Block 800LUV Aircraft
|
Airframe Model/MTOW:
|
737-800
|
174200 pounds
|
Detail Specification:
|
D019A001SWA38
P-1 Rev New
|
Engine Model/Thrust:
|
CFM56-7B26
|
26400 pounds
|
|
Airfram
e Base Aircraft Price Base Year/Escalation Formula
|
Jul-11
|
|
ECI-MFG/CPI
|
Base Aircraft Price:
|
|
***
|
|
Engine Price Base Year/Escalation Formula:
|
N/A
|
|
N/A
|
Special Features:
|
|
________ ***
|
Notes 1 & 2
|
|
|
|
|
Sub-Total of Aircraft Base Price and Features:
|
***
|
|
Aircraft Price Escalation Data:
|
|
|
|
|
Engine Price (Per Aircraft):
|
***
|
|
Base Year Index (ECI):
|
|
***
|
|
|
Aircraft Basic Price (Excluding BFE/SPE):
|
***
|
|
Base Year Index (CPI):
|
|
***
|
|
|
Buyer Furnished Equipment (BFE) Estimate:
|
***
|
|
|
|
|
|
|
Seller Purchased Equipment (SPE) Estimate:
|
***
|
|
|
|
|
|
Delivery
Date
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Aircraft
Serial
Number
|
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
***
|
24 Mos.
***
|
21/18/12/9/6 Mos.
***
|
Total
***
|
||||||
Mar-2012
|
1
|
***
|
36980
|
Note 1 & 3
|
***
|
***
|
***
|
***
|
***
|
Mar-2012
|
1
|
***
|
36680
|
Note 2 & 3
|
***
|
***
|
***
|
***
|
***
|
Apr-2012
|
3
|
***
|
36681, 36983, 36683
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
May-2012
|
3
|
***
|
36682, 36985, 36987
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Jun-2012
|
4
|
***
|
38807, 38808, 38809, 38810
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Jul-2012
|
3
|
***
|
36684, 36990, 38811
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Aug-2012
|
2
|
***
|
36685, 36992
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Sep-2012
|
2
|
***
|
36686, 36994
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Sep-2012
|
1
|
***
|
36687
|
Note 5
|
***
|
***
|
***
|
***
|
***
|
Oct-2012
|
1
|
***
|
36997
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Nov-2012
|
4
|
***
|
37005, 37003, 35969, 35966
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Dec-2012
|
3
|
***
|
37006, 37009, 38818,
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Dec-2012
|
1
|
***
|
36891
|
|
***
|
***
|
***
|
***
|
***
|
Jan-2013
|
3
|
***
|
35964, 36638, 36634
|
|
***
|
***
|
***
|
***
|
***
|
Feb-2013
|
2
|
***
|
36635, 36893
|
|
***
|
***
|
***
|
***
|
***
|
Mar-2013
|
2
|
***
|
36892, 36973
|
|
***
|
***
|
***
|
***
|
***
|
Mar-2013
|
1
|
***
|
36998
|
Note 6
|
***
|
***
|
***
|
***
|
***
|
SWA-PA-01810
|
|
Page
1
|
57774, 57776, 57777, 60261-1F.TXT
|
Boeing Proprietary
|
SA-80
|
Table 1b to
|
Purchase Agreement No. PA-01810
|
Aircraft Delivery, Description, Price and Advance Payments
|
Block 800LUV Aircraft
|
Delivery
Date
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Aircraft
Serial
Number
|
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|
|||
At Signing
***
|
24 Mos.
***
|
21/18/12/9/6 Mos.
***
|
Total
***
|
|||||||
Apr-2013
|
1
|
***
|
36908
|
|
***
|
***
|
***
|
***
|
***
|
|
Sep-2013
|
1
|
***
|
36933
|
|
***
|
***
|
***
|
***
|
***
|
|
Oct-2013
|
2
|
***
|
36912, 36914
|
|
***
|
***
|
***
|
***
|
***
|
|
Nov-2013
|
3
|
***
|
36915, 33939, 42526
|
|
***
|
***
|
***
|
***
|
***
|
|
Dec-2013
|
5
|
***
|
36917, 36919, 36731, 42529, 42530
|
|
***
|
***
|
***
|
***
|
***
|
|
Mar-2014
|
1
|
***
|
37004
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Apr-2014
|
4
|
***
|
42384, 36894, 36895, 36896
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
May-2014
|
3
|
***
|
36897, 42385, 42521
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Jun-2014
|
3
|
***
|
36898, 36905, 42522
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Jul-2014
|
2
|
***
|
42523, 36911
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Aug-2014
|
4
|
***
|
36907, 42524,35973, 42525
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Sep-2014
|
4
|
***
|
36935, 42528, 42527, 42531
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Oct-2014
|
3
|
***
|
36909, 36732, 36920
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
|
Total
|
73
|
|
|
1) ***
|
2) ***
|
3) ***
|
4) The Advance Payment Base Price is determined using the escalation factor from Boeing's 4th Qtr 2011 forecast.
|
5) The Advance Payment Base Price for MSN 36687 reflects an original delivery date of October-2012. At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of September 2012 in accordance with Exhibit D-2.
|
6) The Advance Payment Base Price for MSN 36998 reflects an original delivery date of April-2013. At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of March-2013 in accordance with Exhibit D-2.
|
SWA-PA-01810
|
|
Page
2
|
57774, 57776, 57777, 60261-1F.TXT
|
Boeing Proprietary
|
SA-80
|
Attachment A to SWA-PA-1810-LA1001315R1
|
Page
1
of 2
|
No.
1
|
Model
737-700
|
Aircraft Block
T-W-2b
|
MSN's
36962
|
Current Delivery Mo.
July-11
|
Base Year
1999
|
Status
***
|
2
|
737-700
|
T-W-2b
|
36963
|
July-11
|
1999
|
***
|
3
|
737-700
|
T-W-2b
|
36965
|
August-11
|
1999
|
***
|
4
|
737-700
|
T-W-2b
|
36967
|
October-11
|
1999
|
***
|
5
|
737-800
|
800LUV
|
36980
|
March-12
|
2011
|
***
|
6
|
737-800
|
800LUV
|
36983
|
April-12
|
2011
|
***
|
7
|
737-800
|
800LUV
|
36985
|
May-12
|
2011
|
***
|
8
|
737-800
|
800LUV
|
36987
|
May-12
|
2011
|
***
|
9
|
737-800
|
800LUV
|
36990
|
July-12
|
2011
|
***
|
10
|
737-800
|
800LUV
|
36992
|
August-12
|
2011
|
***
|
11
|
737-800
|
800LUV
|
36994
|
September-12
|
2011
|
***
|
12
|
737-800
|
800LUV
|
37003
|
November-12
|
2011
|
***
|
13
|
737-800
|
800LUV
|
37009
|
December-12
|
2011
|
***
|
14
|
737-800
|
800LUV
|
36973
|
March-13
|
2011
|
|
15
|
737-800
|
800LUV
|
36908
|
April-13
|
2011
|
|
16
|
737-800
|
800LUV
|
36998
|
April-13
March-13
|
2011
|
|
17
|
737-800
|
800LUV
|
37004
|
May-13
March-14
|
2011
|
|
18
|
737-800
|
800LUV
|
42521
|
July-13
May-14
|
2011
|
|
19
|
737-800
|
800LUV
|
42522
|
August-13
June-14
|
2011
|
|
20
|
737-800
|
800LUV
|
42523
|
August-13
July-14
|
2011
|
|
21
|
737-800
|
800LUV
|
42524
|
September-13
August-14
|
2011
|
|
22
|
737-800
|
800LUV
|
36933
|
September-13
|
2011
|
|
23
|
737-800
|
800LUV
|
42525
|
October-13
August-14
|
2011
|
|
24
|
737-800
|
800LUV
|
36935
|
October-13
September-14
|
2011
|
|
25
|
737-800
|
800LUV
|
42526
|
November-13
|
2011
|
|
26
|
737-800
|
800LUV
|
42527
|
November-13
September-14
|
2011
|
|
27
|
737-800
|
800LUV
|
42528
|
November-13
September-14
|
2011
|
|
28
|
737-800
|
800LUV
|
42529
|
December-13
|
2011
|
|
29
|
737-800
|
800LUV
|
42530
|
December-13
|
2011
|
|
30
|
737-800
|
800LUV
|
42531
|
January-14
September-14
|
2011
|
|
31
|
737-800
|
800LUV
|
36909
|
January-14
October-14
|
2011
|
|
32
|
737-700
|
700LUV
|
42532
|
February-14
January-17
|
2011
|
|
33
|
737-700
|
700LUV
|
36910
|
February-14
January-17
|
2011
|
|
34
|
737-700
|
700LUV
|
36927
|
March-14
April-17
|
2011
|
|
35
|
737-700
|
700LUV
|
36925
|
March-14
May-17
|
2011
|
|
36
|
737-700
|
700LUV
|
36926
|
April-14
January-18
|
2011
|
|
37
|
737-700
|
700LUV
|
36929
|
April-14
August-17
|
2011
|
|
38
|
737-700
|
700LUV
|
42533
|
May-14
February-18
|
2011
|
|
39
|
737-700
|
700LUV
|
42534
|
May-14
March-18
|
2011
|
|
40
|
737-700
|
700LUV
|
37019
|
August-14
June-18
|
2011
|
|
41
|
737-700
|
700LUV
|
36930
|
September-14
September-17
|
2011
|
|
42
|
737-700
|
700LUV
|
37042
|
September-14
July-18
|
2011
|
|
43
|
737-700
|
700LUV
|
36934
|
October-14
October-17
|
2011
|
|
44
|
737-700
|
700LUV
|
37034
|
October-14
September-18
|
2011
|
|
45
|
737-700
|
700LUV
|
37043
|
November-14
|
2011
|
|
46
|
737-700
|
700LUV
|
37045
|
December-14
|
2011
|
|
47
|
737-700
|
700LUV
|
37037
|
December-14
|
2011
|
|
48
|
737-700
|
700LUV
|
42535
|
January-15
|
2011
|
|
SA-80
|
Attachment A to SWA-PA-1810-LA1001315R1
|
Page
2
of 2
|
SA-80
|
Supplemental Agreement No. 81
|
|
to
|
|
Purchase Agreement No. 1810
|
|
between
|
|
THE BOEING COMPANY
|
|
and
|
|
SOUTHWEST AIRLINES CO.
|
|
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft
|
P.A. No. 1810
|
SA-81-
1
|
|
THE BOEING COMPANY
|
SOUTHWEST AIRLINES CO.
|
|||||
|
|
|
|
|
|
|
By:
/s/ Jeff Solomon
|
|
By:
/s/ Chris Monroe
|
|
|||
|
|
|
|
|
|
|
Its:
Attorney‑In‑Fact
|
|
Its:
Treasurer
|
P.A. No. 1810
|
SA-81-
2
|
|
TABLE OF CONTENTS
|
Page SA
|
Number
Number
|
1.
|
Subject Matter of Sale
|
1-1
|
SA-75
|
|
|
|
|
2.
|
Delivery, Title and Risk
|
|
|
|
of Loss
|
2-1
|
SA-28
|
|
|
|
|
3.
|
Price of Aircraft
|
3‑1
|
SA-75
|
|
|
|
|
4.
|
Taxes
|
4-1
|
|
|
|
|
|
5.
|
Payment
|
5‑1
|
|
|
|
|
|
6.
|
Excusable Delay
|
6‑1
|
|
|
|
|
|
7.
|
Changes to the Detail
|
|
|
|
Specification
|
7-1
|
SA-73
|
|
|
|
|
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
|
|
P.A. No. 1810
|
i
|
|
K/SWA
|
|
SA-81
|
TABLE OF CONTENTS
|
SA
|
Number
|
1.
|
Aircraft Information Table
|
SA-75
|
1a
|
Aircraft Information Table – Block 700LUV Aircraft
|
SA-77
|
1b
|
Aircraft Information Table – Block 800LUV Aircraft
|
SA-81
|
A-4
|
Aircraft Configuration - 737-700 Block T-W-2b Aircraft
|
SA-66
|
||
|
|
|
|
|
A-5
|
Aircraft Configuration – Block 700LUV Aircraft
|
|
SA-75
|
|
|
|
|
|
|
A-6
|
Aircraft Configuration – Block 800LUV Aircraft
|
SA-75
|
||
|
|
|
|
|
B
|
***
|
SA-75
|
||
|
|
|
|
|
C
|
Customer Support Document
|
|
|
|
|
|
|
|
|
C-2
|
737-800 Customer Support Document
|
SA-75
|
||
|
|
|
|
|
D
|
Price Adjustment Due to
|
|
|
|
|
Economic Fluctuations – Aircraft Price Adjustment
|
|
|
|
|
(July 1992 Base Price)
|
|
|
|
|
|
|
|
|
D-1
|
Price Adjustment Due to
|
|
|
SA-13
|
|
Economic Fluctuations – Aircraft Price Adjustment
|
|
|
|
|
(July 1999 Base Price)
|
|
|
|
|
|
|
|
|
D-2
|
Economic Price Adjustment
|
|
|
SA-75
|
|
ECI-MFG/CPI (July 2011 Base Price)
|
|
|
|
|
|
|
|
|
E
|
Buyer Furnished Equipment
|
|
|
SA-75
|
|
Provisions Document
|
|
|
|
|
Attachment A – 737-7H4 Aircraft (through 2012)
|
|
|
|
|
Attachment B – 737-8H4 Aircraft (2012-2018)
|
|
SA-77
|
|
|
|
|
|
|
F
|
Defined Terms Document
|
|
|
|
1810-1R1
|
Waiver of Aircraft Demonstration Flight
|
SA-75
|
P.A. No. 1810
|
ii
|
|
K/SWA
|
|
SA-81
|
TABLE OF CONTENTS
|
SA
|
Number
|
P.A. No. 1810
|
iii
|
|
K/SWA
|
|
SA-81
|
TABLE OF CONTENTS
|
SA
|
Number
|
SWA-PA-1810-LA-1105885
|
***
|
SA-75
|
|
|
|
|
|
SWA-PA-1810-LA-1105886
|
***
|
SA-75
|
|
|
|
|
|
|
|
|
|
SWA-PA-1810-LA-1105887
|
***
|
SA-75
|
|
|
|
|
|
|
|
|
|
SWA-PA-1810-LA-1105888
|
***
|
SA-78
|
|
|
|
|
|
SWA-PA-1810-LA-1105889
|
***
|
SA-75
|
Table
|
Title
|
Last Updated under SA
|
Current Status
|
2
|
Option Aircraft Information Table
|
SA-74
|
Deleted under SA-75
|
Exhibits
|
Title
|
Last Updated under SA
|
Current Status
|
A
|
Aircraft Configuration – 737-700
|
SA-36
|
Inactive
|
A-Winglet
|
Aircraft Configuration
|
SA-36
|
Inactive
|
A-1-Winglet
|
Aircraft Configuration
|
SA-36
|
Inactive
|
A-1A
|
Aircraft Configuration - 737-700 Block T-W-2c
|
SA-36
|
Inactive
|
P.A. No. 1810
|
iv
|
|
K/SWA
|
|
SA-81
|
TABLE OF CONTENTS
|
|
|
Exhibits
|
Title
|
Last Updated under SA
|
Current Status
|
A-2
|
Aircraft Configuration - 737-
700 Block T-W-2 / T-W-2a
|
SA-47
|
Inactive
|
A-3
|
Aircraft Configuration - 737-
700 Block T-W-2 / T-W-2a
|
SA-61
|
Inactive
|
C.2
|
737-800 Customer Support Variables
|
SA-71
|
Deleted under SA-75
|
E.2
|
737-800 Buyer Furnished Equipment Provisions Document
|
SA-73
|
Deleted under SA-75
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
6‑1162‑RLL‑933R21
|
Option Aircraft
|
SA-60
|
Deleted under SA-75
|
6‑1162‑RLL‑935R1
|
Performance Guarantees
|
SA-1
|
Inactive
|
6‑1162‑RLL‑936R4
|
Certain Contractual Matters
|
SA-4
|
Inactive
|
6‑1162‑RLL‑937
|
Alternate Advance Payment Schedule
|
|
Inactive
|
6‑1162‑RLL‑938
|
***
|
|
Inactive
|
6‑1162‑RLL‑939R1
|
Certification Flight Test Aircraft
|
SA-1
|
Inactive
|
6‑1162‑RLL‑940R1
|
Training Matters
|
SA-1
|
Inactive
|
6‑1162‑RLL‑942
|
Open Configuration Matters
|
|
Inactive
|
6‑1162‑RLL‑943R1
|
Substitution Rights
|
SA-6
|
Deleted under SA 75
|
6‑1162‑RLL‑944
|
***
|
|
Inactive
|
6-1162-RLL-945
|
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
|
|
Inactive
|
6-1162-RLL-1855R3
|
Additional Contractual Matters
|
SA-4
|
Inactive
|
6-1162-RLL-1856
|
***
|
SA-1
|
Inactive
|
6-1162-RLL-1857
|
Service Ready Validation Program Field Test
|
SA-1
|
Inactive
|
6-1162-RLL-1858R1
|
Escalation Matters
|
SA-4
|
Inactive
|
6-1162-RLL-2036
|
Amortization of Costs for Customer Unique Changes
|
SA-1
|
Inactive
|
6-1162-RLL-2037
|
Reconciliation of the Aircraft Basic Price
|
SA-1
|
Inactive
|
6-1162-RLL-2073
|
Maintenance Training
Matters
|
SA-1
|
Inactive
|
P.A. No. 1810
|
v
|
|
K/SWA
|
|
SA-81
|
TABLE OF CONTENTS
|
|
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
6-1162-KJJ-058R1
|
Additional Substitution Rights
|
SA-71
|
Deleted under SA-75
|
6-1162-KJJ-150
|
Flight Control Computer & Mode Control Panel Spares Matter
|
SA-14
|
Inactive
|
6-1162-MSA-185R3
|
Delivery Change Contractual Matters
|
SA-21
|
Inactive
|
6-1162-JMG-747R1
|
***
|
SA-36
|
Inactive
|
6-1162-CHL-217
|
Rescheduled Flight Test Aircraft
|
SA-32
|
Inactive
|
6-1162-NIW-606R1
|
***
|
SA-36
|
Inactive
|
6-1162-NIW-640
|
Early Delivery of Two April 2004 Aircraft
|
SA-35
|
Inactive
|
6-1162-NIW-889
|
Warranty - Exterior Color Schemes and Markings for YA143 and on
|
SA-39
|
Inactive
|
6-1162-NIW-1142
|
***
|
SA-43
|
Inactive
|
6-1162-NIW-1369
|
***
|
SA-46
|
Inactive
|
6-1162-NIW-1983
|
***
|
SA-62
|
Inactive
|
SWA-PA-1810-LA-1000419
|
***
|
SA-64
|
Inactive
|
P.A. No. 1810
|
vi
|
|
K/SWA
|
|
SA-81
|
Table 1b to
|
Purchase Agreement No. PA-01810
|
Aircraft Delivery, Description, Price and Advance Payments
|
Block 800LUV Aircraft
|
Airframe Model/MTOW:
|
737-800
|
174200 pounds
|
Detail Specification:
|
D019A001SWA38
P-1 Rev New
|
Engine Model/Thrust:
Base Aircraft Price:
|
CFM56-7B26
|
26400 pounds
***
|
|
Airfram
e Base Aircraft Price Base Year/Escalation Formula
Engine Price Base Year/Escalation Formula:
|
Jul-11
N/A
|
|
ECI-MFG/CPI
N/A
|
Special Features:
|
***
|
Notes 1 & 2
|
|
|
|
|
|
Sub-Total of Aircraft Base Price and Features:
|
***
|
|
Aircraft Price Escalation Data:
|
|
|
|
|
Engine Price (Per Aircraft):
|
***
|
|
Base Year Index (ECI):
|
|
***
|
|
|
Aircraft Basic Price (Excluding BFE/SPE):
|
***
|
|
Base Year Index (CPI):
|
|
***
|
|
|
Buyer Furnished Equipment (BFE) Estimate:
|
***
|
|
|
|
|
|
|
Seller Purchased Equipment (SPE) Estimate:
|
***
|
|
|
|
|
|
Delivery
Date
|
Number of
Aircraft
|
Escalation Factor (Airframe)
|
Aircraft
Serial
Number
|
|
Escalation Estimate Adv. Payment Base Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
***
|
24 Mos.
***
|
21/18/12/9/6 Mos.
***
|
Total
***
|
||||||
Mar-2012
|
1
|
***
|
36980
|
Note 1 & 3
|
***
|
***
|
***
|
***
|
***
|
Mar-2012
|
1
|
***
|
36680
|
Note 2 & 3
|
***
|
***
|
***
|
***
|
***
|
Apr-2012
|
3
|
***
|
36681, 36983, 36683
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
May-2012
|
3
|
***
|
36682, 36985, 36987
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Jun-2012
|
4
|
***
|
38807, 38808, 38809, 38810
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Jul-2012
|
3
|
***
|
36684, 36990, 38811
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Aug-2012
|
2
|
***
|
36685, 36992
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Sep-2012
|
2
|
***
|
36686, 36994
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Sep-2012
|
1
|
***
|
36687
|
Note 5
|
***
|
***
|
***
|
***
|
***
|
Oct-2012
|
1
|
***
|
36997
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Nov-2012
|
4
|
***
|
37005, 37003, 35969, 35966
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Dec-2012
|
3
|
***
|
37006, 37009, 38818,
|
Note 3
|
***
|
***
|
***
|
***
|
***
|
Dec-2012
|
1
|
***
|
36891
|
|
***
|
***
|
***
|
***
|
***
|
Jan-2013
|
3
|
***
|
35964, 36638, 36634
|
|
***
|
***
|
***
|
***
|
***
|
Feb-2013
|
2
|
***
|
36635, 36893
|
|
***
|
***
|
***
|
***
|
***
|
Mar-2013
|
2
|
***
|
36892, 36973
|
|
***
|
***
|
***
|
***
|
***
|
Mar-2013
|
1
|
***
|
36998
|
Note 6
|
***
|
***
|
***
|
***
|
***
|
SWA-PA-01810
|
|
Page
1
|
57774, 57776, 57777 60261, 63168
|
Boeing Proprietary
|
SA-81
|
Table 1b to
|
Purchase Agreement No. PA-01810
|
Aircraft Delivery, Description, Price and Advance Payments
|
Block 800LUV Aircraft
|
Delivery
Date
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Aircraft
Serial
Number
|
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
***
|
24 Mos.
***
|
21/18/12/9/6 Mos.
***
|
Total
***
|
||||||
Apr-2013
|
1
|
***
|
36908
|
|
***
|
***
|
***
|
***
|
***
|
Sep-2013
|
1
|
***
|
36933
|
|
***
|
***
|
***
|
***
|
***
|
Oct-2013
|
2
|
***
|
36912, 36914
|
|
***
|
***
|
***
|
***
|
***
|
Nov-2013
|
3
|
***
|
36915, 33939, 42526
|
|
***
|
***
|
***
|
***
|
***
|
Dec-2013
|
3
|
***
|
36917, 36919, 36731
|
|
***
|
***
|
***
|
***
|
***
|
Mar-2014
|
1
|
***
|
37004
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Apr-2014
|
4
|
***
|
42384, 36894, 36895, 36896
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
May-2014
|
3
|
***
|
36897, 42385, 42521
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Jun-2014
|
3
|
***
|
36898, 36905, 42522
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Jul-2014
|
2
|
***
|
42523, 36911
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Aug-2014
|
4
|
***
|
36907, 42524,35973, 42525
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Sep-2014
|
4
|
***
|
36935, 42528, 42527, 42531
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Oct-2014
|
3
|
***
|
36909, 36732, 36920
|
Note 4
|
***
|
***
|
***
|
***
|
***
|
Dec-2014
|
2
|
***
|
42529, 42530
|
Note 7
|
***
|
***
|
***
|
***
|
***
|
Total:
|
73
|
|
Notes:
|
1) ***
|
2) ***
|
3) ***
|
4) The Advance Payment Base Price is determined using the escalation factor from Boeing's 4th Qtr 2011 forecast.
|
5) The Advance Payment Base Price for MSN 36687 reflects an original delivery date of October-2012. At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of September 2012 in accordance with Exhibit D-2.
|
6) The Advance Payment Base Price for MSN 36998 reflects an original delivery date of April-2013. At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of March-2013 in accordance with Exhibit D-2.
|
7) The Advance Payment Base Price is determined using the escalation factor from Boeing's 2nd Qtr 2012 forecast.
|
SWA-PA-01810
|
|
Page
2
|
57774, 57776, 57777 60261, 63168
|
Boeing Proprietary
|
SA-81
|
Attachment A to SWA-PA-1810-LA1001315R1
|
Page
1
of 2
|
No.
1
|
Model
737-700
|
Aircraft Block
T-W-2b
|
MSN's
36962
|
Current Delivery Mo.
July-11
|
Base Year
1999
|
Status
***
|
2
|
737-700
|
T-W-2b
|
36963
|
July-11
|
1999
|
***
|
3
|
737-700
|
T-W-2b
|
36965
|
August-11
|
1999
|
***
|
4
|
737-700
|
T-W-2b
|
36967
|
October-11
|
1999
|
***
|
5
|
737-800
|
800LUV
|
36980
|
March-12
|
2011
|
***
|
6
|
737-800
|
800LUV
|
36983
|
April-12
|
2011
|
***
|
7
|
737-800
|
800LUV
|
36985
|
May-12
|
2011
|
***
|
8
|
737-800
|
800LUV
|
36987
|
May-12
|
2011
|
***
|
9
|
737-800
|
800LUV
|
36990
|
July-12
|
2011
|
***
|
10
|
737-800
|
800LUV
|
36992
|
August-12
|
2011
|
***
|
11
|
737-800
|
800LUV
|
36994
|
September-12
|
2011
|
***
|
12
|
737-800
|
800LUV
|
37003
|
November-12
|
2011
|
***
|
13
|
737-800
|
800LUV
|
37009
|
December-12
|
2011
|
***
|
14
|
737-800
|
800LUV
|
36973
|
March-13
|
2011
|
|
15
|
737-800
|
800LUV
|
36908
|
April-13
|
2011
|
|
16
|
737-800
|
800LUV
|
36998
|
April-13
March-13
|
2011
|
|
17
|
737-800
|
800LUV
|
37004
|
May-13
March-14
|
2011
|
|
18
|
737-800
|
800LUV
|
42521
|
July-13
May-14
|
2011
|
|
19
|
737-800
|
800LUV
|
42522
|
August-13
June-14
|
2011
|
|
20
|
737-800
|
800LUV
|
42523
|
August-13
July-14
|
2011
|
|
21
|
737-800
|
800LUV
|
42524
|
September-13
August-14
|
2011
|
|
22
|
737-800
|
800LUV
|
36933
|
September-13
|
2011
|
|
23
|
737-800
|
800LUV
|
42525
|
October-13
August-14
|
2011
|
|
24
|
737-800
|
800LUV
|
36935
|
October-13
September-14
|
2011
|
|
25
|
737-800
|
800LUV
|
42526
|
November-13
|
2011
|
|
26
|
737-800
|
800LUV
|
42527
|
November-13
September-14
|
2011
|
|
27
|
737-800
|
800LUV
|
42528
|
November-13
September-14
|
2011
|
|
28
|
737-800
|
800LUV
|
42529
|
December-13
December-14
|
2011
|
|
29
|
737-800
|
800LUV
|
42530
|
December-13
December-14
|
2011
|
|
30
|
737-800
|
800LUV
|
42531
|
January-14
September-14
|
2011
|
|
31
|
737-800
|
800LUV
|
36909
|
January-14
October-14
|
2011
|
|
32
|
737-700
|
700LUV
|
42532
|
February-14
January-17
|
2011
|
|
33
|
737-700
|
700LUV
|
36910
|
February-14
January-17
|
2011
|
|
34
|
737-700
|
700LUV
|
36927
|
March-14
April-17
|
2011
|
|
35
|
737-700
|
700LUV
|
36925
|
March-14
May-17
|
2011
|
|
36
|
737-700
|
700LUV
|
36926
|
April-14
January-18
|
2011
|
|
37
|
737-700
|
700LUV
|
36929
|
April-14
August-17
|
2011
|
|
38
|
737-700
|
700LUV
|
42533
|
May-14
February-18
|
2011
|
|
39
|
737-700
|
700LUV
|
42534
|
May-14
March-18
|
2011
|
|
40
|
737-700
|
700LUV
|
37019
|
August-14
June-18
|
2011
|
|
41
|
737-700
|
700LUV
|
36930
|
September-14
September-17
|
2011
|
|
42
|
737-700
|
700LUV
|
37042
|
September-14
July-18
|
2011
|
|
43
|
737-700
|
700LUV
|
36934
|
October-14
October-17
|
2011
|
|
44
|
737-700
|
700LUV
|
37034
|
October-14
September-18
|
2011
|
|
45
|
737-700
|
700LUV
|
37043
|
November-14
|
2011
|
|
46
|
737-700
|
700LUV
|
37045
|
December-14
|
2011
|
|
47
|
737-700
|
700LUV
|
37037
|
December-14
|
2011
|
|
48
|
737-700
|
700LUV
|
42535
|
January-15
|
2011
|
|
SA-81
|
Attachment A to SWA-PA-1810-LA1001315R1
|
Page
2
of 2
|
SA-81
|
|
By:
|
/s/ Gary C. Kelly
|
|
|
Gary C. Kelly
|
|
|
Chief Executive Officer
|
|
By:
|
/s/ Tammy Romo
|
|
|
Tammy Romo
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
By:
|
/s/ Gary C. Kelly
|
|
|
Gary C. Kelly
|
|
|
Chief Executive Officer
|
|
By:
|
/s/ Tammy Romo
|
|
|
Tammy Romo
|
|
|
Chief Financial Officer
|