1985 to 1989

 

Heartland LUV

 

1985

January 24, 1985

Southwest's (unaudited) net income for the year ended December 31, 1984, was $49,724,000, a 22% increase over the $40,867,000 earned in 1983.

January 29, 1985

Announces plans to start service to STL, and MDW on March 17.

February 08, 1985

Southwest names Ronald McDonald Houses as our primary charity.

February 26, 1985

Southwest declares the 34th consecutive quarterly dividend of 3.25 cents per share on the 29,532,272 shares currently issued to be paid on March 28, to shareholders of record at the close of business on March 12, 1985.

March 04, 1985

Announces the implementation of a fare adjustment in select markets throughout the system effective March 17.

March 07, 1985

Paul J. Quinn assumes the position of Vice President Schedule Planning.

March 11, 1985

Southwest and Muse Air jointly announce that they have entered into a definitive agreement for Southwest to acquire Muse Air by merging a wholly-owned subsidiary of Southwest into Muse Air.

March 17, 1985

Southwest inaugurates service on St. Patrick's Day out of STL, with 19 daily flights, and MDW, with eight daily flights, and offers introductory fares of $17 for 17 days. St. Louis Provisioning Base opens.

March 25, 1985

Southwest launches "Just Say When" advertising campaign.

March 29, 1985

Southwest exercises an option with The Boeing Company of Seattle to purchase an additional -300 for delivery in August 1986. Herb announces that for the fourth consecutive year Southwest ranked number one in Customer complaints when compared to all other major and national carriers serving the continental U.S. according to the CAB/DOT.

April 08, 1985

Southwest announces, as part of its plans for accelerating the expansion of its Phoenix hub, it will inaugurate PHX-ONT nonstop service on May 15.

April 23, 1985

Southwest's (unaudited) net income for the first quarter of 1985 was $5,323,000 compared to the $10,224,000 earned in the record first quarter of 1984. Operating revenues increased 8.5% to $135,673,000, while operating expenses increased 15.7% to $126,715,000. Southwest declares the 35th consecutive quarterly dividend of 3.25 cents per share on the 29,532,272 shares currently issued to be paid on June 28, to shareholders of record at the close of business on June 12, 1985.

May 15, 1985

Service begins from ONT with five daily flights and an introductory fare of $9 for 9 days.

May 22, 1985

Southwest announces nonstop service from HOU to Jackson Hole, Wyoming throughout the 1985-86 ski season from December 21, 1985 through April 5, 1986.

June 18, 1985

14th Anniversary.

June 25, 1985

Southwest Airlines and Muse Air consummate the acquisition whereby Muse Air becomes a wholly owned subsidiary of Southwest. Herb will be the Chairman of the Board of the two Companies, and remain President and CEO of Southwest. Southwest pays approximately $40.5 million in cash and approximately $20 million in stock for Muse Air.

July 01, 1985

Robert W. Lawless is promoted to Executive Vice President Chief Operations Officer and Colleen C. Barrett is promoted Vice President Administration.

July 02, 1985

For the second quarter of 1985, Southwest flew 1,471.1 million RPMs, a record quarter for the airline. Passengers boarded numbered 3,186,906, a 16.7% increase. This is the first time in the company's history it has boarded three million passengers in one quarter.

July 03, 1985

Southwest announces that on July 14, 1985 it will implement its previously announced policy of equalizing two-tier fares in markets served by Muse Air.

July 12, 1985

Southwest offers nonstop service ABQ-LAX beginning July 14, 1985.

July 17, 1985

Southwest announces that it called for redemption on August 7, 1985 all of the outstanding 10% Convertible Subordinated Debentures Due 2007.

July 18, 1985

Southwest's (unaudited) net income for the second quarter was $19,154,000 a 37.6% increase over the $13,921,000 earned in second quarter 1984. Revenues increased 23.4% to $169,805,000 and operating ex¬penses increased 19.8% to $141,646,000.

August 29, 1985

Southwest breaks ground for multi-million dollar flight training center at Love Field. Target date for completion is mid-1986.

August 30, 1985

Southwest declares 36th consecutive quarterly dividend of 3.25 cents per share on the 32,254,211 shares currently issued to be paid on September 27, to shareholders of record at the close of business on September 10, 1985.

September 10, 1985

Southwest announces the return of five 727-200 aircraft operated from HOU by the end of 1985 and will replace them with the quieter Stage III Boeing 737-300 aircraft.

September 23, 1985

Southwest begins Senior Citizen Fares, offering those 65 years of age or older systemwide fares of $25 each way between 9:00 a.m. and 3:00 p.m., Monday through Friday.

October 01, 1985

Southwest moves to a new location at LAS. Southwest's new location is in Satellite Concourse C, operating from gates 21, 22, and 23. Southwest will also provide ground handling for Muse Air from the same gate area at McCarran. Operations from the new facilities begin October 10. First Message to the Field was held.

October 03, 1985

For the third quarter of 1985, Southwest flew 1,398.7 million RPM's, a 12.1% increase. Passengers boarded in the quarter increased 5.8% to 2,990,721. Load factor was 62.4%.

October 14, 1985

Southwest expands facilities at ABQ. Expansion of the lounge area will better accommodate the growing number of passengers. Two lengthened 12' ticket counters will allow checkin for four flights simultaneously. The 4,000 square foot renovated area will account for more queuing room and seating for passengers.

October 21, 1985

Underscoring its commitment to the revitalization of MDW, Southwest contributes $50,000 toward the installation of new acoustical fencing along the airport's southeast border. The MDW redevelopment program includes airfield renovation and terminal rehabilitation and is targeted for completion in 1990.

October 22, 1985

The third quarter 1985 represents the first financial quarter for which Muse Air results are incorporated in the Consolidated Statement of Income for Southwest. Muse Air contributed $386,000 to the total profit for the quarter. Revenues for the third quarter increased 14% to $160,077,000 and operating ex¬penses increased 12% to $136,571,000, resulting in a third quarter operating profit of $23,506,000, a 31% increase over the same quarter of 1984. The revenue totals for the first nine months (Southwest only) increased 16% to $465,555,000 with an increase in operating expenses of 16% to $404,932,000 producing a year-to-date operating profit of $60,623,000. Net income for the first nine months of 1985 was $41,286,000.

November 12, 1985

James C. Wimberly joins Southwest as Vice President Ground Operations.

November 13, 1985

Gary A. Barron is appointed Executive Vice President Corporate Services.

December 04, 1985

Opened new RUSH cargo facility at ELP.

December 09, 1985

Southwest announces that it filed a shelf registration statement, pursuant to Rule 415, with the Securities and Exchange Commission covering up to $200 million of debt securities which the company could issue from time to time. The First Boston Corporation and Shearson Lehman Brothers, Inc. have been named in the registration statement as poten¬tial underwriters. Net proceeds from the sale of the securities for acquisition of aircraft and related equipment and other general corporate purposes.

December 10, 1985

Southwest christens one of its Boeing 737-300s "The Texas Sesquicentennial" at HOU to celebrate Texas' 150th birthday.

December 21, 1985

Southwest inaugurates our first flight to Jackson Hole, Wyoming for ski season. The flight departs each Saturday from HOU and will be available through April 5, 1986.

December 31, 1985

1985 Milestones Revenue passengers: 12,651,239 vs. 11,595,602 Trips flown: 230,227 Fleet: 70 aircraft Employees at yearend: 5,271 Cities opened: STL, MDW, ONT Load factor: 61.2% For the first time in Company history, Southwest boards more than one million Customers in March.


1986

January 02, 1986

Southwest will implement a fare adjustment effective with the January 12 schedule. The fare adjustment equates to a systemwide increase of 5.9%. Southwest's last systemwide fare increase was March, 1985. Southwest to appeal the Order of the Depart¬ment of Transportation (DOT) which permits carriers which interline to provide service from DAL. The DOT Order refused to permit Continental to offer "through" service on a single ticket from DAL to points beyond the four states contiguous to Texas and would not allow Continental to advertise or promote service from DAL to points outside the Love Field service area, including listing in computer reservations, airline guides of flight schedules.

January 13, 1986

Introduced "Incredible Pair Fare," good between January 13 and March 6, offering $10 and $25 (one way) companion fares when one executive class ticket is purchased. Offer applies to flights departing between 9:00 a.m. through 3:00 p.m., Monday-Thursday. Southwest exercises an option with Boeing to purchase three additional -300s for delivery in June 1987.

January 17, 1986

The "Fly Now, Pay Less" ticket offer is introduced. Southwest lowers all long distance fares across its 25 city system to a ceiling of $98 each way (completely unrestricted). The offer is good between January 20 and February 13, 1986.

January 20, 1986

Announces unrestricted $25 fare between PHX and LAX or ONT. Good between January 20 and February 13, 1986.

January 28, 1986

Southwest's (unaudited) net income for the year ended December 31, 1985 was $47,278,000, a 4.9% decrease from the $49,724,000 earned in 1984.

January 29, 1986

Jim Parker is named Vice President General Counsel and Ron Ricks is named Vice President Governmental Affairs.

January 29, 1986

Southwest announces that it had reached a tentative agreement with the Southwest Airlines Pilots Association on a new four-year contract. The pact is subject to ratification by the membership of the Pilots Association.

February 05, 1986

Southwest opens new RUSH facility at LAX.

February 13, 1986

Muse Air officially changes its name to TranStar. Southwest names Jim Brunjes as new Vice President Systems, effective February 24, 1986.

February 24, 1986

Southwest renews its $25 Senior Citizens program through May 22, 1986. Senior Citizens can fly for $25 one way or $50 roundtrip.

February 28, 1986

Southwest announces that it issued $100 million of 9% senior notes due March 1, 1986. The First Boston Corporation and Shearson Lehman Brothers Inc. were the lead underwriters. Proceeds will be used to retire floating rate bank debt and to acquire new aircraft.

March 03, 1986

Herb co-hosts a reception with the Metro Nashville Airport Authority to dedicate the Airport's new West Terminal. Board of Directors declares the company's 38th consecutive quarterly dividend of 3.25 cents per share on the 32,254,220 shares currently issued and outstanding. This cash dividend will be paid on March 27, 1986 to shareholders of record at the close of business on March 11, 1986.

March 04, 1986

Southwest and Southwest Airlines Pilot Association reach an agreement for a new four-year contract effective until August 31. 1989. The labor contract includes a new hire rate, revised health benefits, savings program, and enhanced scheduling work rules.

March 13, 1986

Southwest names John G. Denison as Vice President Finance and CFO, effective March 24.

March 18, 1986

Inaugurates service to BNA (with eight daily flights) with an introductory fare of $25 to HOU and MDW through March 26.

April 02, 1986

Southwest and the Southwest Airlines Pilot Association sign a new four-year agreement.

April 07, 1986

For the first quarter of 1986, Southwest and Transtar flew a combined 1,544,4 million RPMs, an increase of 6.7% (joint) first quarter of 1985 - (1,191.6 million RPMs for Southwest). Combined year-to-date load fac¬tor was 54.9% (Southwest 54.4%).

April 10, 1986

Introduces new "Fun Fares" between MCI and MDW, OKC, and TUL for $29 (one way) and to ABQ for $49 (one way).

April 14, 1986

Announces $25 Senior Citizens fare valid on Saturdays.

April 17, 1986

Southwest's (unaudited) net income for the first quarter of 1985 was $2,727,000 compared to $5,323,000 in the first quarter of 1985. Revenue for Southwest increased one % to $137,145,000 and operating expenses in¬creased four % to $131,922,000. Revenues for TranStar were $36,449,000 while operating expenses were $34,561,000. TranStar's pre-tax income for the period in¬cluded a gain of $2,883,000 from the sale of certain 1986-87 aircraft delivery positions.

April 22, 1986

Declares the 39th consecutive quarterly dividend of 3.25 cents per share on the 32,254,220 shares currently issued to be paid on June 27, 1986.

May 07, 1986

Introduces "Fun Fares" in BNA, beginning May 11. Fares start at only $29 each way between BNA and HOU; $59 between BNA and AUS, CRP, MSY, HRL, MCI, OKC, and TUL.

May 14, 1986

Southwest will expand its PHX hub, effective with the June 3 schedule, by providing new daily nonstop service to MCI and SFO and additional nonstop service to LAX, OKC, SAN, SAT, and TUL. The new schedule reflects 430 flight departures weekly, providing 53,600 available seats weekly, 25% more than currently offered.

May 19, 1986

Southwest will expand its service from OKC and TUL effective with June 3 schedule. Also expanding service from SFO to PHX and connecting cities; from MAF to DAL, HOU, and AUS.

May 29, 1986

Southwest goes systemwide with Fun Fares with fares as low as $19 each way (based on roundtrip).

June 10, 1986

Participates with the City of Dallas Aviation Department in "Operation Firebird," an annual disaster exercise. Herb and Employees cook dinner at Ronald McDonald Houses across the system.

June 13, 1986

Introduces RUSH PLUS, a new same- or next-day door-to-door air express service. RUSH PLUS is an extension of the RUSH airport-to-airport express service.

June 18, 1986

15th Anniversary. Southwest receives the Presidential Citation Award for Private Sector Initiatives in the White House Rose Garden for our "Home for the Holidays" program which began in 1979.

June 24, 1986

Board of Directors thanks members of the Dallas City Council who voted to continue the voluntary noise control program at Love Field.

June 27, 1986

Customer contact Employees and management begin wearing summer "Fun Ware" clothes promoting the theme "Southwest Flyers Have More Fun." The summer uniforms consist of brightly colored surfer shorts, golf shirts and tennis shoes.

July 03, 1986

Ronnie Lopez, executive assistant to Arizona Governor Bruce Babbit, is presented Southwest's "Good Neighbor Award" at the 1986 annual awards banquet.

July 09, 1986

Southwest and TranStar Airlines flew a combined a 1791 million revenue passenger miles (RPMs) in the second quarter of 1986, a 3% increase above their 1985 figure. Load factor for the second quarter was 57.15%, a decrease form 64.61% for the same period in 1985.

July 14, 1986

Board of Directors declares a dividend of one common share purchase right for each outstanding share of Southwest's common stock, payable on July 31, 1986 to the shareholders of record on that date. Each right entitles its holder to buy from Southwest one share of the Company's common stock at an exercise price of $75.00. Southwest reaches a five year agreement with AMR Information Services, Inc., under which AMR Information Services' computerized reservation system will be used to host reservations activities for Southwest and TranStar Southwest announces the purchase of a -200 flight simulator from American Airlines.

July 21, 1986

Southwest's consolidated net income (unaudited) for the second quarter was $17,100,000, compared to $19,154,000 in the second quarter of 1985. Net income for the first six months of 1985 was $19,827,000, or $.61 per share, compared to $24,477,000 or $.83 per share for the same period last year. Revenue for Southwest decreased 7.8% to $156,603,000 and operating expenses were $34,826,000. The combined net income of Southwest and TranStar was $17,100,000 for the quarter, the second largest quarterly earnings to be reported in the entire history of Southwest, and the 53rd consecu¬tive quarter of positive results.

July 22, 1986

Southwest and TranStar announce that the Drive Through Ticket Counter at Mockingbird adjacent to the new Love Parking Lot immediately east of Cedar Springs will open August 1.

July 23, 1986

Southwest names Gary C. Kelly as the new Controller, reporting to CFO John Denison. He will be responsible for the accounting and financial systems.

August 01, 1986

Southwest's and TranStar's Drive Through Ticket Counter, adjacent to the new Love Field Parking Lot, officially opens. It was constructed in order to provide convenient parking for traveler's during construction at Love Field.

August 11, 1986

Introduces Fall Fun Fares in LAX beginning September 3. Fares start at only $19 each way between LAX and PHX; $39 LAX-ABQ and LAX-LAS; $49 LAX and AMA, AUS, LBB, and MAF; $79 BNA, MCI, MDW, OKC, STL, and TUL.

August 15, 1986

Introduces systemwide Fall Fun Fares beginning on September 3, the lowest Fun Fare being $19 and the highest being $79.00.

August 28, 1986

Southwest's multi-million dollar Training Center for Pilots and Flight Attendants officially opens to a host of city, community and airline officials, as well as Southwest Employees. The 21,000 square-foot Training Center houses the new $8 million Boeing 737-200/-300 aircraft simulator designed by Rediffusion Simulation, Inc. of Great Britain-the only one of its kind in the United States.

September 04, 1986

Celebrates the opening of three new gates at PHX, a $2 million expansion that increased the number of gates to eight. Southwest currently provides 64 daily flight departures from PHX.

September 30, 1986

Southwest ceases operations at Denver Stapleton International Airport (DEN).

October 06, 1986

First Annual LUV Classic golf tournament at Chase Oaks. $35,000 was donated to the Dallas Ronald McDonald House.

October 10, 1986

For the third quarter of 1986, Southwest and TranStar flew a combined 2031.2 million RPM'S, an increase of 19.7%. Combined year-to-date load factor was 57.9%, compared to 60.0% for the same period last year - (Southwest - 58.5%).

October 15, 1986

Offers people, ages 18 through 21, an opportunity to fly standby between CRP and HOU for just $15 each way with tickets available only through MoneyMaker automatic teller machines at one of the participating Corpus Christi 7-Eleven stores using any debit card or major credit card -- including Master Card, Visa or American Express. A "suitcase party" was held to kick off this promotion.

October 21, 1986

Southwest's (unaudited) net income for the third quarter of 1986 was $21,181,000, the largest quarterly net income ever recorded by Southwest in its15 year history, compared to $16,809,000 in the third quarter of 1985. Revenue for Southwest increased 6.2% to $169,972,000 and operating expenses increased only .8% % to $137,624,000. Revenues for TranStar were $37,780,000, while operating expenses were $35,429,000, resulting in an operating income of $2,351,000.

October 24, 1986

Announces the "Home for the Holidays" program for the seventh consecutive year.

October 28, 1986

Board of Directors declares the Company's 41st consecutive quarterly dividend of 3.25 cents per share on the 32,254,269 shares currently issued and outstanding at its meeting held October 28, to be paid on December 18, 1986 to shareholders of record at the close of business on December 3, 1986.

November 05, 1986

Exercises an option with Boeing to purchase two additional -300s for delivery in June 1988. This option exercise increased Southwest's firm orders to 20 additional - 300s for delivery through 1989. Southwest has eight -300 aircraft.

December 31, 1986

1986 Milestones Revenue passengers: 13,637,515 Trips flown: 262,082 Fleet: 79 aircraft Employees at yearend: 5,819 Cities opened: BNA


1987

January 13, 1987

For the fourth quarter of 1986, Southwest flew 2021.8 million RPMs, compared with the 1599.4 million RPMs flown the same period last year, a 26.4% increase. The load factor for the quarter was 61.3%, com¬pared to 58.4% in 1985. For the year ended December 31, Southwest flew 7,388.4 million RPMs, a 14% increase over the 6,482.8 million RPMs flown in 1985. The load factor for 1986 was 58.8%, com¬pared to the 59.6% figure of one year ago.

January 19, 1987

For the sixth year in a row, Southwest has achieved the best passenger complaint record of any continental U.S. air carrier, according to DOT figures. Southwest received only .47 complaints per 100,000 passengers in 1986 -- fewest of any airline in the 49 continental states. Only Hawaii's Aloha Airlines -- with a complaint ration of .25 in 1986 -- was lower.

January 21, 1987

Board of Directors declares the Company's 42nd consecutive quarterly dividend of 3.25 cents per share on the 32,254,269 shares currently issued and out¬standing to be paid on March 26, 1987 to shareholders of record at the close of busi¬ness on March 10, 1987.

January 23, 1987

Consolidated net income (unaudited) for the year ended December 31, 1986 was a record $50.0 million, a 5.8% increase from the $47.3 million earned in 1985. Total revenues for 1986 were $768.8 million, up 13.1% over the prior year, while the comparable operating expenses in¬creased 13.1% to $679.8 million. Record operating income was realized for the year, totaling $89.0 million, a 13.3% increase over the prior year.

February 01, 1987

Albuquerque Cargo facility opens.

February 02, 1987

Southwest will inaugurate new daily nonstop service PHX-BNA and the only direct, same plane service to BHM with the new March 10 schedule. In addition, the airline will offer one more daily nonstop flight to TUL, OKC, and two more daily nonstop flights to SAN. Southwest will take delivery of three 737-300s in early March, increasing the fleet to 20, in addition to the 46 owned 737-200s.

February 19, 1987

Announces increased nonstop flights between SFO and SAN. This brings the number of nonstop flights to eight daily between the two cities. Increases nonstop service from SAN to PHX, effective with the March 10 schedule. The two additional nonstop departures will increase the number of daily nonstop departures to PHX to nine.

February 25, 1987

Southwest, in conjunction with TransFirst Corporation (operator of the MoneyMaker ATM Network) will expand its Youth Standby program to HOU, DAL, and SAT, in addition to CRP beginning February 25. Through May 31, young adults ages 18 through 21, can fly between HOU, DAL, and SAT, or between HOU and CRP for only $15 one-way space available. Tickets can be purchased with any debit or credit card through the MoneyMaker automatic teller machines at participating 7-Eleven stores.

March 01, 1987

Phoenix Reservations Center (PRC) opens.

March 10, 1987

Birmingham (BHM) service begins, with nine daily flights. Southwest launches our latest advertising campaign and becomes known as "The Company Plane."

April 01, 1987

Southwest opens three additional crew bases—Inflight Bases in Houston and Phoenix and a Pilot Base in Phoenix.

April 03, 1987

Announces plans to inaugurate service to Detroit on June 4, 1987.

April 15, 1987

For the first quarter of 1987, Southwest flew 1,821.6 million RPMs, compared with the 1,544.4 million RPMs recorded for the same period in 1986, a 17.9% increase. ASMs increased 21.4% to 3,417.1 million from the first quarter 1986 level of 2,814.8 million. The year to date load factor is 53.3%, compared to 54.9% for the same period in 1986.

April 21, 1987

Southwest dramatically reduced the price of its Fun Fares by as much as 25%. The prices will now range from $19 to $85, requiring a 14-day advance reservation and purchase. Southwest is introducing a new one-day advance reservation fare to "out-compete" MaxSavers. The new "Fun Fares Too" will be the lowest priced, one-day advance reservation fare in the U.S. The fares have some restrictions and start as low as $25.

April 29, 1987

Southwest's (unaudited) consolidated net loss for the first quarter ended March 31, 1987 was $9,835,000, compared to net in¬come of $2,727,000 in the first quarter of 1986. This represents a loss per share of $.30 ($.30 fully diluted), compared to earn¬ings of $.08 ($.08 fully diluted) reported in the first quarter of last year. Consolidated revenue increased 3% to $178,383,000 and operating expenses increased 11.6% to $185,404,000, resulting in the first quarter operating loss of $7,021,000 compared to $7,111,000 of operating profit in the same quarter of 1986.

April 30, 1987

Southwest lowers its everyday unrestricted fares for flights from BHM to MDW and BNA by 20% One-way fares between BHM and MDW have been reduced to $69 for weekday travel and $59 for evenings and weekends. Between BHM and BNA, the lower one-way fares are $39 for weekday travel and $29 for evenings and weekends. Lowers business fares to $29 for travel between PHX and LAX. These fares are good for every seat, every flight, Monday through Thursday.

May 11, 1987

Expands the full-service freight product by adding air freight to its small package RUSH service between ELP, LAS, LAX, PHX, and SAN.

May 20, 1987

Announces the exercise of an option with Boeing to purchase one more -300 for delivery in May, 1989. Tenth year of service in MAF. Herb will be in MAF and LBB on May 21 to attend special birthday celebrations. In 1977, Southwest offered 11 weekly nonstop depar¬tures to DAL. Today that number has increased to 124 nonstop flights departing each week to DAL, ABQ, AUS, ELP, HOU. Same plane or connecting service links the area residents with 19 other great Southwest cities. More than 5.5 million Southwest Customers have benefited from the low fares that Southwest introduced in MAF ten years ago. Tenth year of service in LBB. In 1977, Southwest introduced service to LBB with just 11 weekly nonstop departures to DAL. Today that number has increased 99 nonstop flights per week to DAL, ABQ, AUS, ELP. Same plane or connecting service links LBB to 16 other great Southwest cities. More than 5.2 million Southwest Customers have benefited from Southwest service in the last ten years.

May 21, 1987

Southwest announces it will order 20 of the 122-seat (single-class) 737-500s and option 20 more, pending final agreements. The first 20 are for delivery beginning in March 1990 through 1991, while the optioned aircraft would be delivered starting in 1992.

June 04, 1987

Detroit (DTW) service begins, from the city's Metro Airport, with twelve nonstop flights daily.

June 18, 1987

16th Anniversary.

June 20, 1987

Filling a void for the shorthaul business traveler, Southwest introduces "The Company Club," a frequent flyer program based on total trips flown, regardless of distance that is the simplest and fastest way to receive free roundtrip tickets.

June 30, 1987

Tenth year of service in ELP. Herb was in ELP on June 29 to attend special birthday celebrations. In 1977, Southwest started service from ELP with just 21 weekly nonstop departures to DAL, LBB, and MAF. Today that number has increased to 248 nonstop flights departing each week to ABQ, AUS, DAL, HOU, LAS, LAZ, LBB, MAF, PHX, SAN, and SAN. In addition, same-plane or connecting service links ELP residents to 14 other Southwest cities. More than 6.6 million Southwest Customers have benefited from the low fares that Southwest introduced in 1977.

July 01, 1987

Chicago (Midway) Provisioning Base opens.

July 14, 1987

For the second quarter of 1987, Southwest flew 2,190.3 million RPMs recorded for the same period in 1986, a 22.3% increase. ASMs increased 19% to 3,7723.2 million from the second quarter 1986 level of 3,170.1 million ASMs. The second quarter load factor was 58%, compared to 56.5% for the same period last year.

July 15, 1987

Board of Directors declares the Company's 44th consecutive quarterly dividend of 3.25 cents per share on the 32,254,269 shares currently issued and outstanding to be paid on September 25, 1987 to shareholders of record at the close of business on September 9, 1987.

July 29, 1987

W.W. Franklin, President and CEO of TranStar announces that the Board of Directors of TranStar has made the decision to permanently cease all airline operations effective with the close of business on August 9, 1987, after which time TranStar will proceed with an orderly process of liquidation. Herb emphasized that the announced cessation of operation by TranStar would have absolutely zero effect on Southwest's present or future operations.

July 31, 1987

Southwest's (unaudited) net income for the second quarter ended June 30, 1987 was $635,000, compared to net income of $17,100.000 for the same period last year, and represents earnings of $.02 ($.02 fully diluted), compared to $.53 ($.53 fully diluted) reported in the second quarter of last year. Revenue for Southwest, parent company only, increased 4.9% to $164,265,000 and operating expenses increased 18.5% to $155,396,000, resulting in a second quarter operating profit of $8,869,000, compared to $25,481,000 of operating profit in the same quarter of 1986.

August 09, 1987

TranStar (Southwest's wholly owned, but independently operated, subsidiary) permanently ceases all airline operation effective at the close of business today, after which TranStar will proceed with an orderly process of liquidation.

August 11, 1987

Houston Reservations Center (HRC) is opened.

September 15, 1987

Celebrates 10 years of AUS service. Currently, Southwest provides 226 weekly departures from AUS. As of August 31, 1987, Southwest carried a total of 9,740,143 passengers to and from AUS, with 78,382 flight departures.

September 16, 1987

The City of Detroit and Southwest today jointly announce plans for Southwest to commence commercial air service at Detroit City Airport, located five miles from downtown Detroit. Airport improvements and scheduled air service will begin in May 1988.

September 28, 1987

LUV Classic golf tournament at Chase Oaks. $30,540 was donated to DAL Ronald McDonald House. Volunteer teams of Southwest Employees are able to earn fantastic merchandise awards by finding new ways to improve revenues or reduce costs for Southwest through an incentive program called "Together We Make It Great."

October 09, 1987

Southwest announces that it will offer ski packages again this year to New Mexico, from November to April, with ABQ serving as the gateway to Ski New Mexico for Southwest Flyers.

October 12, 1987

For the third quarter of 1987, Southwest, excluding TranStar, flew 2,0005.6 million RPMs, compared with the 1,616.4 million RPMs recorded for the same quarter last year, a 24.1% increase. ASMs increased 21.5% to 3,102.9 million from the third quarter load factor was 64.6%, compared to 63.3% for the same period last year.

October 20, 1987

Announces intention to repurchase up to 500,000 shares of its common stock in the open market from time to time. The Company believes that the market price of its shares does not reflect an appropriate valuation and that such a stock repurchase program will benefit the Company's remaining shareholders.

November 02, 1987

Southwest's (unaudited) consolidated net income for the third quarter ended September 30, 1987 was $20,432,000, compared to net income of $21,181,000 in the third quarter of 1986, and represents earnings per share of $.63, compared to $.66 reported in the third quarter of last year. Revenue for Southwest on a consolidated basis decreased 3.3% to $200,743,000 and operating expenses increased 2.1% to $176,496,000 resulting in a third quarter operating profit of $24,247,000, compared to $34,699,000 of operating profit in the same quarter of 1986.

November 16, 1987

Southwest's successful Youth Standby program has been expanded to include most nonstop destinations from DAL, offering two tiers of fares. The age restriction has also been increased to include 18 to 24 year olds.

November 19, 1987

Southwest introduces, in London, England, the Holiday pass program, a coupon book valid for three trips within the Southwest system. Southwest is offering the program through a sales and marketing agreement with Caledonian Aviation Services, a subsidiary of British Caledonian Airways.

December 02, 1987

Signs a new three year labor contract with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and helpers of America - Airline Division. The contract included a salary progression scale for new Employees. Also, the third year of the contract linked the salary increase to corporate profitability.

December 31, 1987

1987 Milestones Revenue passengers: 13,503,242 Trips flown: 270,559 Fleet: 75 aircraft Employees at yearend: 5,765 Cities opened: BHM, DTW


1988

January 05, 1988

Southwest and Sea World of Texas announce plans for the "New Friends" marketing partnership to promote Texas as a major tourist destination. Southwest will be the official airline of Sea World of Texas and will sponsor the "New Friends" show/exhibit. Southwest announces it will voluntarily prohibit smoking on board commercial flights operated entirely within the state of California, beginning January 11.

January 07, 1988

Southwest flew 1,772.0 million RPMs in the fourth quarter of 1987, a 20.6% increase from the fourth quarter of 1987 figure of 1469.6 million RPMs. ASMs increased 19.7% to 3037.9 million, up from 2538.7 million in 1986. The load factor for the fourth quarter of 1987 was 58.3%, up from 57.9% from a year ago.

January 20, 1988

Declares 46th consecutive quarterly dividend of 3.25 cents per share to be paid on March 25, 1988 to all shareholders of record at close of business on March 10, 1988.

February 01, 1988

Reports net income for the fourth quarter of 1987 of $8,922,000, compared to net income of $9,027,000 for the same period of last year, which represents earnings per share of last year, which represents earnings per share of $.28, compared to $.28 for the last quarter of 1986. Approximately $646,000 of the net income resulted from the discontinuance of operations of TranStar, Southwest's subsidiary which ceased operation August 9, and disposition of TranStar's assets. Revenue for the fourth quarter 1987 increased 24% to $193.9 million, compared to $156.0 million for the fourth quarter 1986. Total net expenses for the fourth quarter 1987 increased 30% to $184,167,000 or $.0606 per ASM, compared to $141,500,000 or $.0557 per ASM for the fourth quarter 1986. Net income for the year 1987 was $20,155,000 ($.63 per share), compared to $50,035,000 ($1.55 per share) for 1986. Revenue increased 13% in 1987 to $698,663,000 as compared to $619,699,000 in 1986. Total net expenses increased 20% in 1987 to $668,883,000 or $.0574 per ASM in 1986.

February 08, 1988

Reduces the number of trips required to earn a free flight through the Company Club Frequent Flyer Program. Beginning today, frequent flyers need only fly five round trips (four for Company Club members) rather than ten (eight for Company Club members).

February 11, 1988

Donates a minimum of $20,000 to the Scroogebuster fund in PHX for Central Avenue holiday decorations. Employee volunteers also collected public donations for the campaign at three Central Avenue sites.

February 16, 1988

Daniel W. Hay joins Southwest as Vice President Systems.

February 24, 1988

David Brown joins Southwest as Director Public Relations.

March 02, 1988

The DOT rates Southwest as having the best ontime performance, the fewest number of lost baggage complaints, and the lowest number of Customer complaints of all airlines. This was the first time since the DOT began tracking airline performance that one airline rated first in all three categories.

March 05, 1988

Herb attends the opening and dedication of the Dallas Rowing Club`s Bachman Boathouse. Southwest had previously donated $15,000 for the construction of the boathouse.

March 07, 1988

Southwest introduces the Fun Pack mini-vacation program.

March 09, 1988

Begins construction of its $5.7 million maintenance facility at HOU.

March 11, 1988

Southwest announces it will expand service in several markets beginning April 3, 1988. Expansion includes additional nonstop flights between DAL and MSY, a nonstop flight from PHX to MSY, additional one-stop service from PHX to ABQ, HOU, ONT, SAN, SFO, and TUL, and a nonstop from SAT to LAX.

March 17, 1988

Lowers senior citizen fares to as low as $15, beginning March 19. These fares are a continuation of the relationship Southwest has developed with the seniors community over the past several years by offering them excellent fares, with few restrictions.

April 07, 1988

Flew 1,556.6 million revenue passenger miles in the 1st quarter of 1988, a 20.2% increase from the 1987 figure of 1,295.4 million. ASMs increased 18.9% to 3,016.6 million from 2,537.5 million in the 1st quarter of 1987. The load factor for the first quarter of 1988 was 51.6%, compared to 51.1% of a year ago.

April 12, 1988

Lowered fares between several markets; Detroit-MCI ($49), PHX-MCI on nonstop flights only ($95), PHX-ABQ ($29) , PHX-ELP ($29), LAS-LBB ($95), LAS-SAN on nonstop flights only ($29), and LAS-MAF ($89). No restrictions and no advance purchase required.

April 14, 1988

Increases PHX service by 25% adding 23 daily departures effective with June 2 schedule.

April 22, 1988

To help ease our Customers into the new federal regulations which prohibit smoking on flights of two hours or less, Southwest distributes 200,000 lollipops to our Customers over the next few days.

April 27, 1988

Consolidated net income for the first quarter of 1988 was $168,000, compared to a net loss of $9,834,000 in the first quarter of 1987, and represents earnings per share of $.01, compared to a net loss of $.30 reported in the first quarter of 1987. Revenue was $178,572,000, while operating expenses decreased 4.5% to $177,044,000, resulting in first quarter operating and pretax income of $1,528,000 and $243,000, respectively, compared to operating and pretax losses of $7,021,000 and $13,089,000 respectively in the same quarter of 1987.

May 02, 1988

Extends deadline of frequent flyer bonus program to the end of the year.

May 04, 1988

Herb and Detroit Mayor Coleman Young announce that through the cooperative efforts of the City of Detroit, the FAA, and Southwest, Southwest will commence service to Detroit City Airport on July 6, 1988.

May 13, 1988

Herb discusses the Partnership for Improved Air Travel and other industry related issues at a press briefing in OKC's Will Rogers World Airport.

May 18, 1988

Announces quarterly dividend of three and one-fourth cents (3.25) per share, the company's 47th consecutive quarterly dividend, to be paid on June 28 to shareholders of record as of the close of business June 13, 1988.

May 23, 1988

Southwest and Sea World of Texas introduce Shamu One, a Boeing 737-300 painted like a killer whale. The jet arrives in San Antonio with special passengers dressed in "penguin suits"—Herb; George Becker, Chairman of Sea World of Texas; Henry Cisneros, Mayor of San Antonio; Annette Strauss, Mayor of Dallas; and Kathy Whitmire, Mayor of Houston—on its maiden tour to Southwest's original three cities. Shamu One completed a 27 city tour over six days including each of Southwest's cities and New York.

May 28, 1988

Southwest announces a partnership with Sea World of California similar to that with Sea World of Texas, with Southwest serving as the official airline of the park.

May 31, 1988

Announces that with June 2, 1988, schedule Southwest will lower fares in several of its markets.

June 18, 1988

17th Anniversary

July 06, 1988

Southwest expands its service to offer almost 900 flights each day across its route system, which covers 27 cities in 13 states. In all, the airline flies approximately 2.3 million plane miles per week. Southwest becomes the first commercial passenger-carrying airline to provide service from Detroit City Airport (DET) in over 40 years. Herb and Detroit Mayor Coleman A. Young preside over an official first-flight ribbon-cutting ceremony at 7:45 a.m. on the second floor of the newly renovated terminal. We start with 13 daily nonstops. Expands gate facilities at HOU by 6, adding Concourse C to the nine gates currently used in Concourse A. These gates were formerly used by TranStar Airlines. With the addition of new service, Southwest will offer up to 122 flights daily from HOU to 27 cities Reduces fares in several markets.

July 07, 1988

Southwest learns that we earned our first ever monthly Triple Crown for May 1988. This is the first time since the DOT started tracking airline performance for ontime performance, baggage handling, and Customer complaints that an airline rated first in all three categories.

July 08, 1988

For the second quarter of the year, Southwest flew 1,902.8 million RPMs compared with the 1,677.0 million RPMs recorded for the same period in 1987, a 13.5% increase. ASMs increased 20.8% to 3,355.0 mil¬lion from the second quarter 1987 level of 2,778.4 million. The second quarter load factor was 56.7%, compared to 60.4% for the same period last year.

July 20, 1988

Board of Directors declares the Company's 48th consecutive quarterly dividend of 3.25 cents per share on all shares currently issued and outstanding to be paid on September 26, 1988 to shareholder of record at the close of business on September 9, 1988.

July 29, 1988

Southwest is reducing fares to as low as $19 in 26 markets and offering new 21-day and 7-day advance purchase fares effective Friday July 29. The new 21-day advance purchase fares are as low as $19, but no higher than $99, one-way.

August 01, 1988

Southwest's consolidated net income for the second quarter ended June 30, 1988 was $15,125,000, an improvement of $14,490,000 over net income of $635,000 in the second quarter of 1987, and represents earnings per share of $.48, compared to earnings per share of .02 reported in the second quarter of last year.

August 22, 1988

Southwest announces that it intended to repurchase up to 1,000,000 shares of its common stock in the open market from time to time.

August 25, 1988

Southwest is honored by 50 Plus Magazine with its 1987 Maturity Market Advertising Award. Southwest is one of ten winners honored for its ad featuring three seniors riding to the beach on three-wheel motorized bikes. The headline announces "They're Back," explaining that special Senior Fares had returned. For the second year, Southwest began its "Go for the Gold" sweepstakes for senior citizens 65 years or older. The program awards one senior citizen from each of Southwest's 27 cities free unlimited travel across the system for one year, and also allows a companion of any age to accompany the senior on any of the trips during the award year. Announces the lowering of senior fares in selected markets for seniors aged 65 or more. The fares will range from a low of $19 one-way to a fare no higher than $99 one-way.

August 30, 1988

Unveils "Saver Packs" that allow local travelers in PHX to take 11 flights for the price of 10 at guaranteed prices.

September 07, 1988

Adds flights to MDW from Detroit City Airport and DTW; from STL to Detroit City Airport.

September 30, 1988

LUV Classic golf tournament at Bear Creek. $36,576 was donated to DAL Ronald McDonald House.

October 04, 1988

Launches a "Killer Shipper" program to promote the company's new AIR FREIGHT service. Southwest offers general commodity freight between 25 cities across it system with competitive city-pair rates. The Killer Shipper promotion will allow volume AIR FREIGHT shippers the opportunity to receive a commemorate Shamu One model airplane.

October 05, 1988

Herb announces that Captain Paul E. Sterbenz is now our Vice President Flight Operations. He will be responsible for flight operations, crew scheduling and planning divisions and the training center, in addition to the Company's pilots.

October 13, 1988

For the third quarter of 1988, Southwest flew 2,150.8 million RPMs, compared with the 20-05.6 million RPMs recorded for the same period in 1987, a 7.2% increase. ASMs increased 15.5% to 3,582.8 million from the third quarter 1987 level of 3,102.9 million. The third quarter load factor was 60%, compared to 64.6% for the same period last year.

October 26, 1988

Consolidated net income for the third quarter ended September 30, 1988 was $26,586,000 representing earnings of $.85 per share. Herb said "Our third quarter 1988 earnings of $26,586,000 constitute record quarterly earn¬ings for our company and surpass by 30% our third quarter 1987 earnings of $20,432,000. Our third quarter 1988 earnings per share of $.85 exceed by 35% our third quarter 1988 earnings per share of $.63.

November 02, 1988

Ticket By Mail is born.

November 11, 1988

Responding to recent America West commercials which portray publicity-shy air travelers, Southwest's marketing unveils an ad campaign honoring the "Unknown Flier" in PHX.

November 15, 1988

Southwest breaks ground for a new corporate headquarters at Dallas Love Field, which will house our general office personnel.

November 16, 1988

Board of Directors declares a quarterly dividend of 3.5 cents per share on all shares currently insured and outstanding. The decision to increase the quarterly dividend to 3.5 cents per share from the previous 3.25 cents per share reflects the company's record third quarter earnings performance and its continued commitment to its shareholders. The 49th consecutive quarterly dividend will be paid on December 20, 1988 to shareholders of record at the close of business on December 5, 1988.

November 27, 1988

Southwest teams up with Burger King to usher in a new travel opportunity—The "Buddy Pass" program.

November 29, 1988

Southwest officially opens the $5.7 million Houston Hobby Maintenance Base.

December 12, 1988

Celebrates 10 years of service in AMA.

December 31, 1988

1988 Milestones Revenue passengers: 14,876,582 Trips flown: 274,859 Fleet: 85 aircraft Employees at yearend: 6,467 Cities opened: DET


1989

January 16, 1989

Board of Directors declares a quarterly dividend of 3.5 cents per share on all shares currently issued and outstanding. This 50th consecutive quarterly dividend will be paid on March 27, 1989 to shareholders of record at the close of business on March 10, 1989.

January 25, 1989

10th anniversary of service in MSY. Deregulation of the industry allowed Southwest to expand outside its traditional Texas markets and on January 25, 1979, the airline began nonstop service MSY-HOU with an average of six flights daily, making MSY the first city outside Texas to be serviced by Southwest.

January 30, 1989

Southwest more than doubles its future capabilities to handle Customer flight reservations and information requests in the Dallas Metroplex and surrounding areas when it opened a new reservations center located in Grand Prairie. A ribbon-cutting ceremony held today at the new reservations center, formerly the Texas Sports Hall of Fame, was officiated by Herb and attended by several hundred Southwest Employees, civic and community leaders from the greater Dallas and Grand Prairie areas.

February 01, 1989

Net income for the fourth quarter ended December 31, 1988 was $16.1 million, up 81% from the fourth quarter 1987 earnings of $8.9 million, and represents earnings per share of $.51, compared to $.28 reported in the fourth quarter of 1987. Net income for the year 1988 was $58.0 million ($1.84 per share) compared to $20.2 million ($.63 per share) for 1987. Excluding TranStar in 1987, revenues increased 23% in 1988 to $860.4 million from $698.7 million in 1987, due to increased yields of 8% and increased RPMs of 14%. Operating expenses increased 18% in 1988 to $774.5 million from $657.5 million in 1987, commensurate with the 16% in¬crease in ASMs. This represents an increase in operating expenses per ASM of 1 % to $.05.

February 08, 1989

Offered late-night fliers the advantage of even lower fares by offering "Night Flight" fares of just $29 one-way be¬tween DAL and HOU, AMA, AUS, SAT, TUL, or MAF. Beginning today, this $29 one-way is the lowest unrestricted fare between DAL and these six cities on all flights scheduled at 9:00 p.m. or later and before 6:00 a.m.

February 17, 1989

Nolan Ryan signs with Southwest and becomes the official spokesman for Air Cargo. Completed the purchase of 1,000,000 shares of its common stock pursuant to the previously announces common stock repurchase program and that its intention is to repurchase up to an addi¬tional 1,000,000 shares in the open market from time to time.

April 01, 1989

Herb makes the April cover of Texas Monthly posing in the infamous Elvis costume.

April 03, 1989

Service begins from Indianapolis (IND) with 11 daily flights.

April 06, 1989

For the first three months of 1989, Southwest flew 2,212.3 million RPMs recorded for the same period in 1988, an increase of 43%. ASMs increased 13.% to 3,386.12 million from the year-to-date 1988 level of 2,996.4 million. The year-to-date load factor was 65.3%, compared to 51.6% for the same period last year.

April 12, 1989

Announces new nonstop service OAK to ONT, SAN, and PHX beginning May 15, 1989.

May 15, 1989

Southwest inaugurates service at OAK with 14 daily flights.

May 17, 1989

Board of Directors declares a quarterly dividend of 3.5 cents per share on all shares currently issued and outstanding. The 51st consecutive quarterly dividend will be paid on June 28, 1989 to shareholders of record at the close of business on June 13, 1989.

May 23, 1989

May 23, 1989 1st anniversary of Shamu One. In the past 12 months, Shamu One flew 1.1 million miles between Southwest destination cities.

June 01, 1989

"Night Fares" have been so successful that the airline decides to offer them in 17 cities across its system. Beginning June 1, "night fares" will be offered in AMA, AUS, BNA, DAL, Detroit, ELP, HOU, LAS, LAX, MCI, MDW, OKC, PHX, SAN, SAT, SFO, and STL for any and all flights scheduled at 9:00 p.m. after, and before 6:00 a.m. Fares vary depending on the origin and destination city, and range from $19 to $99 one way.

June 18, 1989

18th Anniversary.

July 06, 1989

For the second quarter of 1989, Southwest flew a record 2,403. 6 million RPMs, compared with 1,888.6 million RPMs recorded for the same period in 1988, an increase of 27.3%. ASMs increased 13.2% to 3,771.2 million from the 1988 second quarter level of 3,330.2 million. Load factor was 63.7% compared to 56.7% for the same period last year.

July 19, 1989

Board of Directors declares a quarterly dividend of 3.5 cents per share on all shares currently issued and outstanding. This 52nd consecutive quarterly dividend will be paid on September 26, 1989 to shareholders of record at the close of business on September 8, 1989.

July 26, 1989

Net income for the second quarter ended June 30, 1989 was up 27.2% to $19.2 million compared to the $15.1 million earned in second quarter 1988. Earnings per share were $.64 in 1989 versus $.48 in 1988, an increase of 33.3%. The large increase in earnings was primarily achieved from operations: a traffic increase of 27.3% and a 22.4% increase in operating income for the quarter.

August 06, 1989

Debut of a $2 million dollar mixed media advertising campaign designed to promote the convenience and accessibility of Detroit City Airport.

October 09, 1989

For the third quarter of 1989, Southwest flew a record 2,447.9 million RPMs, compared with 2,138.8, an increase of 14.5%. ASMs increased 8.3% of 3,859.2 million from the 1988 third quarter level of 3,564.2 million. The 1989 third quarter load factor was 63.4% compared to 60.0% for the same period last year.

October 13, 1989

LUV Classic golf tournament at Bear Creek. $179,276 was donated to DAL Ronald McDonald House.

October 15, 1989

CBS Sunday evening news program, "60 Minutes," airs the story "Herb and His Airline."

November 07, 1989

Twenty nine seniors, each selected as a local winner in one of the 29 cities served by Southwest, will jet to LAS on November 8 to receive their "Go for the Gold" pass entitling them to unlimited free travel for a one-year period.

November 08, 1989

For an unprecedented second time since the DOT began keeping records on the performance of the nation's largest carriers, Southwest captured the top rating in all three categories of the DOT operating statistics report.

November 15, 1989

Board of Directors declares a quarterly dividend of 3.5 cents per share on all shares issued and outstanding. This 53rd consecutive quarterly dividend will be paid on December 20, 1989 to shareholders of record at the close of business on December 5, 1989.

November 27, 1989

Kentucky Fried Chicken and Southwest launch a program offering consumers in eight states a free Southwest Partner Pass when they buy a special holiday meal through Dec. 24, 1989.

December 01, 1989

Scores second monthly Triple Crown.

December 19, 1989

Southwest announces that it is reducing many of its longer distance fares nationwide and placing a fare ceiling of $99 one-way on any 21-day advance purchase fare for travel Mondays through Thursdays and Saturdays. Customer must buy their tickets by January 20 and travel between January 6 and March 15, 1990.

December 31, 1989

1989 Milestones Revenue passengers: 17,958,263 Trips flown: 304,673 Fleet: 94 aircraft Employees at yearend: 7,760 Cities opened: IND, OAK Southwest airlines reaches major carrier status in 1989! Major airline is defined by the DOT as an airline whose operating revenues exceed $1 billion in a 12 month period.

Please visit our Investor Relations website at www.southwestairlinesinvestorrelations.com/ for all year end financial summaries

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