2001 to 2004


Southwest Recovers



January 01, 2001

Southwest begins offering benefits to Committed Partners. A Committed Partner is defined as an unmarried person at least 18 years old, of the same or opposite sex, whose committed domestic partnership has been established and exited for 12 consecutive months or more. Southwest begins paying traditional travel agents an eight percent commission.

January 02, 2001

Southwest Employee number 60,000 is issued.

January 03, 2001

Herb Kelleher is honored on The Top 25 Managers of the Year for innovation, financial performance, and individual leadership capabilities.

January 16, 2001

Southwest gives "a nod to the past and looks to the future with a fresh coat of paint," unveiling its new "Canyon Blue" livery and revamped interior design, featuring "Canyon Blue" and "Saddle Tan" leather seats throughout. In an event at DAL Maintenance Hangar C, two new Boeing 737-700s–painted in the new livery–were delivered with 19 of Southwest's original Employees and 59 new Employees (representing each airport served by Southwest) aboard. To introduce the new look nationwide, the two aircraft and our Original Employees embark the following day on a 20-city tour of our System. 2000 marked the 28th consecutive year of profitability with an annual income of $625.2 million, compared to 1999's $474.4 million in incomes.

January 18, 2001

Southwest Airlines' Board of Directors declares a 3-for-2 stock split of the Company's common stock and also increased the quarterly dividend.

January 21, 2001

Southwest Airlines begins service from Palm Beach International Airport with 13 daily nonstop flights to four cities: Baltimore/Washington, Nashville, Orlando, and Tampa Bay. Southwest will employ 40-50 people when operations are fully staffed. With the addition of West Palm Beach, Southwest will serve 58 cities (59 airports) in 29 states.

January 22, 2001

Southwest inaugurates West Palm Beach by opening a giant balloon-filled treasure chest to reveal a Southwest Airlines model jet, signifying the golden opportunity Southwest has at Palm Beach County International Airport.

January 23, 2001

Southwest announces the cessation of operations at SFO to be effective on March 5. The airline cites a lack of terminal facilities and limited runway capacity and delays, among other causes. The 72 SFO Employees will be guaranteed equivalent jobs elsewhere on the system.

February 05, 2001

Southwest Airlines is named America's most admired airline in FORTUNE's industry-specific listing of "Most Admired Companies," and finished fourth place overall.

February 06, 2001

Southwest Airlines receives the Airline of the Year award from Official Airline Guide.

February 12, 2001

Southwest Airlines website ranks sixth on PowerRankings by Forrester Research.

February 13, 2001

Kevin Krone is promoted to Vice President Interactive Marketing.

February 14, 2001

Pass Bureau Department is named 2001 "Heroes of the Heart." Southwest Airlines announces plans to establish its seventh crew base in Orlando by July 1, 2001. When MCO is fully staffed, it will employ 750 pilots and 900 flight attendants. Southwest Airlines' Adopt-A-Pilot Program takes flight with over 7,500 fifth-grade students. As participants, these fifth-grade students will adopt more than 200 pilot as classroom mentors in more than 70 cities.

February 19, 2001

To celebrate our 30th anniversary, Southwest Airlines Vacations is giving away 30 packages to 14 of our most exciting destinations. Employees must enter a drawing by March 31 to be eligible for monthly drawings.

February 20, 2001

Ticket By Mail (TBM) purchase option is no longer an option for purchase through General Reservations.

February 23, 2001

Beginning today, Southwest provides our SWABIZ Customers the convenience of a one-stop travel site for all of their travel needs by offering hotels online. Soon after, southwest.com will offer this opportunity to all Southwest Customers.

February 27, 2001

Southwest Airlines ranks second on the Top Ten Bonuses of 2000 by InsideFlyer Magazine.

February 28, 2001

Southwest Airlines is awarded on U.S. Airlines for Customer Service by Zagat Survey, LLC.

March 01, 2001

Southwest Airlines ranks 14th on Business Ethics magazine's "100 Best Corporate Citizens" for 1999. Southwest Airlines receives an award for 2001 Hispanic Corporate 100 from Hispanic Magazine.

March 04, 2001

The final Southwest flight from San Francisco International Airport departs, bringing an end to 19 years of service at SFO.

March 07, 2001

Chicago Midway's new terminal is unveiled, including: passenger drop-off, ticketing, passenger pick-up, expanded baggage claim areas, and a connected parking garage. Restaurants and retail areas will open in late Spring and the next phase of construction will include Southwest's new gate areas. Southwest Airlines ranks 26th in the Best Corporate Reputations in America by The Wall Street Journal.

March 08, 2001

The ability to book hotels is launched on southwest.com.

March 19, 2001

Southwest announces a succession plan. According to the plan, which will go into effect on June 19, 2001, Herb will keep his title of Chairman of the Board of Directors, while Vice President General Counsel Jim Parker will become Vice Chairman & Chief Executive Officer and Executive Vice President Customers & Corporate Secretary Colleen Barrett will become President & Chief Operating Officer. Gary Kelly moves from Vice President Finance & CFO to Executive Vice President—CFO. John Denison will retire in June as Executive Vice President Corporate Services. Donna Conover will be promoted to Executive Vice President Customers on June 19. Jim Wimberly becomes Executive Vice President Chief of Operations. Joyce Rogge moves up from Vice President Marketing to Senior Vice President Marketing on June 19. Debby Ackerman will become Vice President—General Counsel on June 19. Bob Montgomery becomes Vice President Properties and Facilities on June 19.

March 21, 2001

Southwest Airlines ranks 28th on "100 Best Corporate Citizens" list, by Business Ethics magazine Southwest Airlines ranks first in American Customer Service Index (ACSI).

March 28, 2001

Southwest announces additions to the Leadership Team in Finance. Mike Van de Ven will become Vice President of Financial Planning and Analysis. Laura Wright will become Vice President Finance and Treasurer.

April 01, 2001

Southwest Airlines is honored on The BusinessWeek Fifty by Business Week Magazine.

April 02, 2001

Southwest Airlines ranks third in the Airline Quality Rating (AQR) study. Southwest Airlines ranks 41st on the Where do MBA's Want to Work study by Fortune Magazine.

April 11, 2001

Tammye Walker-Jones will assume the position of Vice President Inflight on June 19, and Daryl Krause will become Vice President Provisioning on the same day.

April 12, 2001

southwest.com was the busiest airline web site for the month of February, according to a recent report by Jupiter Media Metrix. Southwest's site received 2.9 million unique visitors, compared with 2.5 million for United and 2.4 million for American.

April 16, 2001

Southwest Airlines ranks 316th in the Fortune 500 in Fortune Magazine.

April 18, 2001

Phoenix Reservations Center is named "Reservations Center of the Year" for 2000.

April 19, 2001

Southwest Airlines' net income for first quarter 2001 was $121.0 million, compared to first quarter 2000 net income of $95.6 million, an increase of 26.6 percent. Total operating revenues for first quarter 2001 increased 15.0 percent to $1.43 billion, compared to $1.24 billion for first quarter 2000. RPM's increased 12.8 percent in first quarter 2001, compared to a 12.0 percent increase in ASM's – resulting in a load factor of 67.3 percent versus the first quarter 2000 load factor of 66.8 percent.

April 23, 2001

Southwest Airlines and Delta Air Lines announce Employee Travel Program effective May 15, 2001. Employees, eligible dependents, and Retirees of Southwest will be able to purchase unlimited, space-available ID-90 passes for travel on Delta, Comair, and Atlantic Southwest Airlines. Parents are eligible for unlimited, space-available ID-75 passes.

April 24, 2001

Southwest Airlines' web site is named the top ranking web site for customer satisfaction among major travel sites according to research conducted by Nielson/NetRatings and Harris Interactive.

April 25, 2001

Southwest Airlines ranks first in American Customer Service Index (ACSI) in the Wall Street Journal.

April 26, 2001

Southwest Airlines is honored in the Freddie Awards by Inside Flyer Magazine.

April 27, 2001

Rapid Rewards wins first place Freddie Awards for both Best Promotion and Best Award Redemption, and placed second for Best Customer Service, Best Web Site, and Program of the Year.

May 11, 2001

Southwest holds the annual Phoenix LUV Classic Golf Tournament and Party. $212,000 was donated to the Ronald McDonald House in the following manner: ½ to PHX and ½ to TUS. Dollar Rental car launches on SWABIZ.

May 14, 2001

Southwest places 14th on the Dallas Morning News' 2001 "D-FW Top 200" listing of the largest public companies in the Metroplex.

May 16, 2001

Southwest Airlines signs an agreement with CFM International worth $300 million to upgrade the CFM56-3 jet engines (for 737-300's and 737-500's) to achieve better fuel efficiency, lower maintenance costs, and longer engine life. In a related $1.2 billion deal, we also extended an existing contract through July 2012 to have GE Engine Services maintain our CFM engines.

May 18, 2001

Dollar Rental car launches on southwest.com.

May 21, 2001

Southwest Airlines ranks first among airlines (with a score of 70 out of 100) for the highest customer satisfaction according to the American Customer Satisfaction Index survey. Our score is unchanged from the 2000 index. Southwest Airlines gives Customers the Freedom of Choice with additional rental car reservation options on southwest.com. The rental car companies offered include Advantage, Thrifty, National, Sears, Able, Discount Car and Truck, and Red and Blue Auto. These companies are in addition to our direct connection with Rapid Reward Preferred Partners – Alamo, Budget, Hertz, and Dollar.

May 25, 2001

Southwest announces plans to begin flying to Southern Virginia via Norfolk International Airport on Oct. 7, 2001.

June 01, 2001

Southwest Airlines is named one of The Best Companies in the World by Focus Money and Hornblower Fischer.

June 04, 2001

Southwest is mentioned on the NBC episode of "Weakest Link" as the subject of a question: "What Texas-based airline company was first to begin Ticketless Travel in the mid-'90s?" The answer, which was given correctly, was Southwest Airlines.

June 08, 2001

SWABIZ Customers have the exclusive opportunity to View/Apply Ticketless Travel Funds. Herb, Colleen, and Jim Parker ring the opening bell at the New York Stock Exchange.

June 15, 2001

Southwest Airlines' 5,300 Ground Workers who are members of the Transport Workers Union (TWU) Local 555, approve, by more than a 2-to-1 margin a new contract, closing a bargaining process that began in December 1999. The new contract becomes amendable in June 2006. The ability to check Flight Status launches on southwest.com.

June 18, 2001

30th Anniversary

June 19, 2001

The previously announced Succession Transition Plan begins.

June 29, 2001

The ability to View/Apply Ticketless Travel Funds launches on southwest.com.

June 30, 2001

Annual Awards Banquet

July 04, 2001

Southwest removes fares from ATPCO, blocking Orbitz from accessing/displaying Southwest fares.

July 18, 2001

Southwest Airlines is honored on the Web Business 50 Awards in CIO Magazine. Southwest Airlines' net income for second quarter 2001 was $175.6 million, compared to second quarter 2000 net income of $190.6 million, a decrease of 7.9 percent. Total operating revenues increased 6.4 percent to $1.55 billion, compared to $1.46 billion for second quarter 2000. Revenue passenger miles increased 7.6 percent, compared to an 11.5 percent increase in available seat miles, resulting in a load factor of 71.7 percent versus the second quarter 2000 load factor of 74.3 percent.

July 24, 2001

Planet Feedback, the nation's leading online consumer feedback service, selects Southwest as one of our "A-Rated Companies" for 2001. Southwest announces flight schedules and destinations for ORF, which will open on October 7. Seven flights a day will serve BWI, to between JAX, one to LAS, and two to MCO.

August 01, 2001

Southwest Maintenance begins the process of removing the AT&T Inflight Phone System from our aircraft. This process will take place over a 12-month timeframe. Phones will remain active until they are removed from each aircraft.

August 07, 2001

Southwest unveils its newest Pilot and Flight Attendant Crew Bases at Orlando International Airport. AMA rolls out a new automated bag tag system. The new system showed immediate ticket counter and ramp handling improvements in efficiency and selectee procedures (a lot of minutes saved by not writing; as well as complete compliance with the FAA on selectee procedures).

August 16, 2001

Southwest Interactive Marketing is listed on The 20 Most Popular Airlines by The Lycos 50 Daily Report.

August 20, 2001

The National Committee for Employer Support of the Guard and Reserver (ESGR) selects Southwest as one of five winners for its Employer Support Freedom Award.

September 01, 2001

Southwest Interactive Marketing is chosen by Smart Business Magazine as one of the top 50 U.S. companies that have harnessed the power and convenience of the Internet to expand and enhance their business. The ranking was compiled from research on leading U.S. companies across every industry, as well as nonprofit organizations and government agencies.

September 11, 2001

Terrorist attacks using three aircraft (two American and one United) bring down the twin towers of New York's World Trade Center and severely damage the Pentagon in Washington. On the fourth aircraft, United 93, passengers take over and force the aircraft into the ground near Shanksville, PA. The FAA orders every plane out of the sky over the United States.

September 14, 2001

We resumed service. At Love Field, hundreds of Employees line the fence next to the runway to watch the first flight get back into the air. Over the next days, weeks, and months, other airlines lay off thousands of employees and reduce flight schedules, but Southwest maintains both employment and its schedule.

September 25, 2001

Pledge to LUV allows Employees to donate one to 32 hours of pay for salaried Employees and one to 28 trips for Flight Crews as a way for individual Employees to assist the Company in the wake of 9/11.

September 27, 2001

Southwest Employees, including Herb, join employees of other airlines and President Bush at a rally to support the airlines, which was held at Chicago's O'Hare Airport.

September 28, 2001

Hiring of Pilots and Flight Attendants will resume in the fourth quarter.

October 05, 2001

LUV Classic golf tournament at Bear Creek. $444,000 was donated to Ronald McDonald Houses in the following manner: $50,000 to Temple, TX, ¼ to DAL, ¼ to MCO, ¼ to MCI, and ¼ to PVD.

October 07, 2001

Southwest begins service to Norfolk, Va., (ORF) our 59th airport and 30th state, when flight #1238 departed ORF for BWI. ORF-LAS becomes one of our longest daily nonstop flights at 2,148 miles.

October 08, 2001

Southwest christens service at Norfolk International Airport today with the breaking of confetti-filled champagne bottles and warm words from local dignitaries and Southwest representatives.

October 12, 2001

Greg Wells is named Vice President Safety, Security, and Flight Dispatch.

October 18, 2001

Net income for the third quarter was $151 million, a decrease of 18.1 percent from the $184.3 earned in the same quarter of 2000. Between July 1 and September 11, the load factor was 74.6 percent. For the remainder of the quarter after 9/11, the load factor dropped to 45.4 percent.

October 31, 2001

Southwest Airlines ranks 18th on the World's Most Respected Companies by Financial Times. Out of deference to the losses the nation and the other airlines suffered in the 9/11 attacks, Southwest cancels its annual Halloween celebration. Employees are urged to wear red, white, and blue.

November 01, 2001

MSY Provisioning becomes the 20th Provisioning Base today. Southwest equips aircraft with flexible wrist restraint devices as items of aircraft emergency equipment. Colleen Barrett ranks 20th in America's Most Powerful Businesswomen by Fortune Magazine.

November 12, 2001

Southwest Airlines wins the Satmetrix Systems Best Customer Satisfaction Award for the Transportation Industry as a result of an opt-in survey of more than 13,000 business & consumer respondents who rated 200 global companies for their customer commitment.

November 15, 2001

Bob Jordan is named Vice President of Purchasing and Steve Whaley is named Controller. Southwest Airlines' Board of Directors declares a quarterly dividend of $.0045 per share to Shareholders of record at the close of business on December 5, 2001 on all shares then issued and outstanding. The 101st consecutive dividend will be paid on January 4, 2002.

December 10, 2001

Southwest Airlines is recognized in Women Mean Business for its dedication to Employees and its support of work-life balance policies. The award was given by Business and Professional Women/USA.

December 11, 2001

Southwest Airlines receives the Carl Lightcap Senior Services Volunteer Award.

December 13, 2001

Herb Kelleher is honored in Travel Agent's 2001 Airlines Winner's Circle by Travel Agent Magazine

December 14, 2001

Indianapolis International Airport receives the "Airport Safety Excellence Award" for 2001 from the Great Lakes Airports Division of the Federal Aviation Administration.

December 15, 2001

Southwest Airlines is honored with the International Association of Convention and Visitors Bureaus' Spirit of Hospitality Award.

December 17, 2001

Beverly Carmichael is named Vice President of People.

December 27, 2001

Jim Parker makes the listing of Aviation Daily's "Top 20 Most Influential People in Aviation 2001" for showing that the Southwest tradition of caring for its Employees has never been stronger when he chose not to lay off a single Employee after September 11 and vowed to weather the downturn with its cash reserves and work ingenuity.

December 31, 2001

2001 Milestones: 511,147,000 Revenue Passengers: 64,446,773 Trips Flown: 940,426 Fleet: 355 Employees at yearend: 31,580 Cities opened: PBI & ORF Load factor at yearend: 68.1 % RPM's at yearend: 44,493,916 ASM's at yearend: 65,295,290 Station of the Year: AUS Res. Center of the Year: URC DOT Stats: first in customer complaints, first in ontime performance, and eight in baggage handling

December 31, 2001

Jose Luis Sanchez receives an award for 2001 Hispanic Corporate Elite from Hispanic Magazine.


January 01, 2002

General Counsel is awarded the Employer of Choice Award by the Minority Corporate Counsel Association (MCCA).

January 04, 2002

Jim Parker and Herb Kelleher were named joint winners of the Morningstar CEO of the Year Award for 2001.

January 07, 2002

Colleen Barrett and Jim Parker noted as People to Watch in Fortune Magazine.

January 21, 2002

Wireless provider Nextel has been added to the Southwest list of Rapid Rewards Preferred Partners.

January 22, 2002

Southwest Airlines ranks 24th on RQ Gold 2001 by harrisinteractive.com.

January 23, 2002

Southwest announces an enhancement to its Next Flight Guaranteed (NFG) product that allows Customers to ship a package with same-day delivery, from doorstep to doorstep.

February 01, 2002

The September 11th Security Fee goes into effect. The fee will apply to all airline tickets and frequent flyer award travel and will be used to pay the government's cost for providing Federal civil aviation security services.

February 07, 2002

Southwest Airlines is presented with the New Mexico Tourism Ambassador Award.

February 12, 2002

Southwest ranks number twenty in the Business Ethics Magazine annual 100 Best Corporate Citizens poll. Southwest ranks number one in the Employee Relations category because of no layoffs, employee stability, congruence of mission, and amiable relationships with unions.

February 14, 2002

Finance Payroll Department is named Southwest's 2002 Heroes of the Heart.

February 15, 2002

Southwest Airlines ranks second in America's Most Admired Companies and the #1 Airline for 2001, according to Fortune Magazine.

February 18, 2002

Southwest Airlines is awarded for 2002 Hispanic Corporate 100 by Hispanic Magazine.

February 20, 2002

Southwest Airlines is named an A-Rated Company for the year 2001 by PlanetFeedback.com.

February 22, 2002

Colleen Barrett is nominated to serve a one year term on the Board of Directors of the Better Business Bureau of Metropolitan Dallas, Inc. Colleen Barrett is named Texas Business Woman of the Year for 2001 by the Women's Chamber of Commerce Texas.

February 25, 2002

Internet service provider Earthlink joins the list of preferred partners Southwest Airlines frequent flyers can use to earn credits as part of the carrier's 15th Anniversary of the Rapid Rewards program.

March 04, 2002

URC receives 2001 Reservation Center of the Year Award.

March 06, 2002

AUS is named Station of the Year for 2001 El Paso is honored as the Station of the Year (for Medium, Small and Very Small Stations) in 2001. Las Vegas is honored as the Station of the Year (for Mega and Large Stations) in 2001.

March 07, 2002

Southwest Airlines ranks 20th on Business Ethics "100 Best Corporate Citizens" list.

March 10, 2002

The first phase of an overall plan to improve traffic flow in and around Love Field kicked off with the doubling of capacity at security checkpoints, which were expanded from three lanes to six.

April 08, 2002

Southwest starts offering Customers a selection of popular Kraft products on flights longer than 450 miles. Customers who travel on flight of less than 450 miles will still receive peanuts or pretzels. Customers traveling on flights between 450 and 1,120 miles will receive a sweet Nabisco brand cookie pack, like Lorna Doone or Snack Well's, on morning flights or a salty crack snack, like Cheese Nips or Wheat Thins, on afternoon or evening flights. For those Customers traveling on flights of 1,121 miles or more, a full "Snack Pack" will be served, which includes an attractively boxed trio of packaged goodies – Oreo's, Cheese Nips, and Nabisco Fruit Snacks. Southwest ranks fourth in the 2001 Airline Quality Rating (AQR) study.

April 10, 2002

Colleen Barrett and Herb Kelleher receive the Kupfer Distinguished Executive Award from Texas A&M.

April 11, 2002

Southwest begins installing American flag decals on all of our aircraft.

April 12, 2002

John T. Monford, senior vice president-legislative and political affairs for SBC Communications is nominated for election to Southwest's Board of Directors. Subject to Shareholder approval, his term will begin at the Annual Shareholders Meeting on May 15, as two longtime Boardmembers, Sam Barshop and Gene Bishop, retire from service.

April 15, 2002

Southwest Airlines ranks 34th in Forbes 500 in Forbes Magazine. Southwest Airlines ranks 317th in the Fortune 500 in Fortune Magazine.

April 18, 2002

Southwest Airlines' net income for first quarter 2002 was $21.4 million, compared to first quarter 2001 net income of $121.0 million, a decrease of 82.3 percent. Total operating revenues decreased 12.0 percent to $1.26 billion, compared to $1.43 billion for first quarter 2001. Revenue passenger miles decreased 2.5 percent, compared to a 4.2 percent increase in available seat miles, resulting in a load factor of 62.9 percent versus the first quarter 2001 load factor of 67.3 percent.

April 25, 2002

Herb Kelleher is inducted into the U.S. Chamber of Commerce Business Leadership Hall of Fame by the U.S. Chamber of Commerce.

May 01, 2002

Jim Parker receives the Best of the Best award from Fast Company.

May 08, 2002

Southwest Airlines is honored in the Freddie Awards by Inside Flyer Magazine.

May 10, 2002

Southwest holds the annual Phoenix LUV Classic Golf Tournament and Party. $220,000 was donated to the Ronald McDonald House in the following manner: $52,000 to STL, $52,000 to PHX, $52,000 to TUS, $20,000 to LAX, $52,000 to SNA, $20,000 to Camp Ronald McDonald. Southwest Airlines is named the Best Low Cost Airline by the Official Airline Guide (OAG).

May 16, 2002

Senator Trent Lott appoints Joyce Rogge, Senior Vice President Marketing to the National Commission to Ensure Consumer Information and Choice in the Airline Industry.

May 21, 2002

Southwest Airlines Cargo Department is awarded ACCA Airline of the Year. Southwest Airlines ranks 15th in D-FW Top 100 list according to the Dallas Morning News.

May 23, 2002

Colleen Barrett is recognized by Business Wire, Inc. in their eComm Ten Awards. Because of a decline in usage, Southwest discontinues the use of local phone lines at eight of the airlines nine Reservations Center. (Chicago did not have a local line.) The switch to all "800" numbers improves the Company's ability to route calls between Centers.

May 29, 2002

May 29, 2002 Southwest issues the first automated boarding pass to Ms. Martha McNaul during a test phase at Houston Intercontinental.

May 30, 2002

Southwest Airlines ranks first (with an overall index of 100) for Jupiter Airline CORE on Jupiter Media Matrix. Vice President Special Marketing, Camille Keith, was recognized for her achievements by the Women's Museum in Dallas.

June 01, 2002

Southwest Airlines ranks 18th in The Top 20 Companies for Leaders by Chief Executive Magazine.

June 06, 2002

Herb Kelleher is awarded as One of the Top 25 Most Influential People in the Business Travel Industry by Business Travel News.

June 10, 2002

Colleen Barrett receives the Lousie Raggio Pathfinder Award from the Dallas Fort Worth chapter of the National Association of Women Business Owners.

June 17, 2002

Southwest begins the gradual retirement of its reusable plastic boarding card in favor of an automated system that issues a paper boarding card at more locations within the airport.

June 18, 2002

31st Anniversary.

July 02, 2002

Rapid Rewards Members can receive credit for flights they complete by providing their membership number when they book a reservation. That means the Member no longer has to present a membership card at checkin to receive credit, but will automatically receive it within seven days of completing the flight.

July 15, 2002

Nonrevs can now list for their flights via an automated telephone voice response system.

July 18, 2002

Southwest Airlines' net income for second quarter 2002 was $102.3 million compared to second quarter 2001 net income of $175.6 million, a decrease of 41.8 percent. Total operating revenues decreased 5.2 percent to $1.47 billion, compared to $1.55 billion for second quarter 2001. Revenue passenger miles increased 1.8 percent, compared to a 4.4 percent increase in available seat miles, resulting in a load factor of 69.9 percent. Southwest ranks 6th on The Worlds Best Awards for best domestic airline by Travel & Leisure Magazine.

July 25, 2002

Southwest teams with IBM to offer the first of more than 250 airport self-service checkin kiosks that will be available nationwide. The first RAPID CHECKIN kiosks are operating in Dallas, with additional kiosks planned for San Antonio, Phoenix, Nashville, Houston Hobby, Chicago Midway, Oakland, Los Angeles, San Diego, San Jose, Sacramento, Orlando, and Baltimore/Washington.

July 26, 2002

Employee Communications celebrates the 737th issue of Today@SWA, the Company's daily newsletter. The "daily" was first published on September 20, 1999. Southwest Cargo earns the 2002 Quest for Quality Award for outstanding Cargo performance. The Logistics Management & Distribution Report determines the award based on a survey of 3,000 shippers.

August 19, 2002

Marketing Groups and Meetings receive Incentive Magazine's 2002 Platinum Partner Award from Incentive Magazine.

August 20, 2002

SWAPA, representing Southwest's Pilots ratifies a two-year extension to their agreement with the Company. The contract will now be amendable on September 1, 2006.

August 22, 2002

Southwest Airlines is listed on Corporate Spotlight-Best Practices List by Unmarried America. Colleen Barrett receives the Lifetime Achievement Award from the Virginia Aviation Conference.

August 23, 2002

Last-minute fares are capped at $299/one way. The highest one-way fare any Customer will have to be is $299 plus taxes and feed.

August 28, 2002

Flight Instructors represented by the Southwest Airlines Professional Instructor's Association agree to extend their contract by two years. The agreement will extend through December 31, 2012.

September 11, 2002

On the one-year anniversary of 9/11, Southwest remembers the thousands of Americans who lost their lives in the attacks. At Headquarters, hundreds of Employees gathered in front of the building to recite the Pledge of Allegiance, sing "God Bless America" and the "Star-Spangled Banner."

September 15, 2002

Southwest begins its first regularly schedule nonstop transcontinental flights with service between BWI and LAX.

September 27, 2002

Three new Vice Presidents are announced. Being promoted to Vice President Systems is longtime Employee Bob Jordan. Another Southwest veteran, Rob Myrben is promoted to Vice President Fuel Management, while Ray Sears is promoted to Vice President Purchasing.

September 30, 2002

Colleen Barrett ranks 13th on The 50 Most Powerful Women in Business by Fortune Magazine.

October 09, 2002

Southwest Airlines ranks first on the 30 Year Super Stocks in Money Magazine.

October 10, 2002

Southwest Airlines receives the Civic Award of Excellence from Oakland Civic Pride.

October 11, 2002

Southwest Airlines' 1,300 Mechanics, represented by the International Brotherhood of Teamsters, ratifies an agreement extending their contract through August 16, 2005. The contract includes pay increases for all Mechanics, along with stock options, to be granted at today's fair market value of Southwest Airlines stock. LUV Classic golf tournament at Bear Creek. $505,000 was donated to Ronald McDonald Houses in the following manner: $120,000 each to Dallas, San Diego, Palo Alto, and Long Island. Colleen Barrett is honored with The Women's Leadership Exchange Compass Award by Women's Leadership Exchange.

October 15, 2002

Southwest Airlines is selected as finalist in the Global Corporate Achievement Awards 2002 by The Economist.

October 17, 2002

Southwest Airlines' net income for third quarter 2002 was $74.9 million, compared to third quarter 2001 net income of $151.0 million. Available seat miles (ASMs) increased 8.1 percent from third quarter 2001.

October 21, 2002

Southwest Airlines ranks first in the Best Companies in North America for 2002 from Global Finance Magazine.

October 22, 2002

Herb Kelleher receives the 2003 Bower Award for Business Leadership from the Franklin Institute Awards.

October 27, 2002

Lidia Martinez is honored with the KSWB Unsung Hispanic Heroes by KSWB 5/69 in San Diego.

November 11, 2002

Southwest Airlines ranks 46th on InfoWorld 100 by InfoWorld Media Group.

November 15, 2002

southwest.com received a new look of canyon blue and the spirited, friendly faces of our SWA Employees from Reservations, Customer Relations, and SOS. A restored Vietnam-era Huey UH-1H helicopter lands at Headquarters for a special event honoring Southwest's veterans. The aircraft is the subject of a documentary, In the Shadow of the Blade, which looks at the conflict from the perspective of the helicopter.

November 22, 2002

Southwest Airlines is named the Best Low Cost Carrier by Business Traveler Magazine.

December 06, 2002

Southwest Airlines' Ramp, Operations, Provisioning, and Freight Agents, represented by the Transport Workers Union of America, ratify an agreement extending their contract, which formerly became amendable on June 30, 2006, through June 30. 2008. The contract extension provides stock options, to be granted at fair market value of Southwest Airlines stock on the date of ratification.

December 12, 2002

Southwest Airlines ranks 39th in the Div50 by Div2000.com.

December 20, 2002

Security Documents are now available on southwest.com, as well as the ability to retrieve the Hotel Itinerary.

December 26, 2002

The IAM and Southwest reach tentative agreement on a new contract for the airlines' Customer Service and Reservations Employees.

December 27, 2002

Colleen Barrett and Jim Parker are awarded Business People of the Year by Dallas Business Journal.

December 31, 2002

2002 Milestones: 240,969,000 Revenue Passengers: 63,045,988 Trips Flown: 947,331 Fleet: 375 Employees at yearend: 33,705 Load factor at yearend: 65.9% RPMs at yearend: 45.4 billion ASMs at yearend: 68.9 billion Station of the Year: SAT Res. Center of the Year: HRC Provo Station of the Year: SJC DOT Stats: First in customer complaints, sixth in ontime performance, and fourth in baggage handling

December 31, 2002

388 Southwest Maintenance Employees are awarded by the Federal Aviation Administration (FAA) in its Aircraft Maintenance Technician (AMT) awards program, which recognizes aircraft mechanics for participation in initial and recurrent training. 280 of the Mechanics received the two highest levels of the FAA award: Ruby and Diamond. The TSA begins screening all checked bags. Colleen Barrett and Jim Parker are named in the Best Managers list for 2002 by Business Week. Southwest Airlines is honored as Salvation Army 2002 Volunteer Partner of the Year.


January 13, 2003

Southwest's first nonstop transcontinental flights begin with a flight between BWI and SJC.

January 20, 2003

Southwest Airlines Vacations unveiled its newly redesigned Website – swavacations.com.

January 22, 2003

Southwest Airlines net income for fourth quarter 2002 was $42.4 million, compared to $63.5 million for fourth quarter 2001. Net income diluted share was $.05 for fourth quarter 2002, compared to $.08 in fourth quarter 2001. The Company also reported the 30th consecutive year of profitability.

January 24, 2003

BusinessWeek names Southwest Airlines CEO Jim Parker and President Colleen Barrett in their "Best Managers" list for 2002.

January 24, 2003

Southwest Airlines is honored on the Top Companies for Building Executives Within by Hewitt Associates, Inc.

January 27, 2003

Air Transport World selects Southwest Airlines the Airline of the Year for 2003. The editors praised Southwest for being profitable for 30 consecutive years, while providing affordable fares for millions of passengers. Southwest ranks second on TravelQuality.com Aviation Awards 2003 by travelquality.com. AMFA (Aircraft Mechanics Fraternal Association) is the new union representing Southwest's Mechanics.

January 29, 2003

Southwest Airlines' 10,000 Customer Service and Reservations Agents represented by the International Association of Machinists and Aerospace Workers (IAMAW), ratify an agreement extending their contract through November, 2008. The contract will include pay increases and stock options.

February 12, 2003

Southwest Airlines ranks 22nd on RQ Gold 2002 by Harris Interactive.

February 18, 2003

The new HOU Central Concourse celebrates its grand opening.

February 19, 2003

Southwest Airlines ranks second in America's Most Admired Companies and the #1 Airline for 2002, according to Fortune Magazine.

February 21, 2003

The change Itinerary feature goes live on SWABIZ.

February 26, 2003

Southwest Airlines President and COO, Colleen Barrett, is honored by Fast Company magazine as one of the "Fast 50" of 2003. The annual "Who's Fast" list highlights the business elite who demonstrate the power or persistence, the value of values, the rewards of solving problems, and the business of culture.

March 06, 2003

The NBA and WNBA select Southwest as their Official Airline.

March 10, 2003

San Antonio is chosen as Station of the Year for 2002. Over the weekend, Southwest completed the eight-month task of installing the reinforced cockpit doors on all of its aircraft.

March 18, 2003

Southwest Airlines is honored for "Comraderie" by the Great Place to Work Institute.

March 20, 2003

Louis Caldera and Nancy Ann Brown Loeffler are elected to the Southwest Airlines Board of Directors. Louis Caldera is the Vice Chancellor for University Advancement of the California State University System and President of the CSU Foundation. Nancy Ann Brown Loeffler is a Member of the University of Texas M.D. Anderson Cancer Center Board of Visitors, and serves on the Board of Regents at St. Mary's University, the South Texas Community Foundation, the National Cowgirl Museum and Hall of Fame, the Vice President' Residence Foundation in Washington D.C., the Capitol Advisory Committee for Texas Lutheran University, and the Blanton Museum of Art located on the University of Texas campus.

March 31, 2003

Southwest Airlines is honored as the "2003 Airline of the Year" by the Air Couriers Conference of America (ACCA). The annual award is based on surveys completed by actual ACCA members. Southwest Cargo ranked first in three categories: service, communication, and tracking and tracing.

April 07, 2003

Southwest finished third among the ten major airlines in the Airline Quality Rating (AQR) study ranking U.S. carriers on performance criteria in 2002. SWA ranked third overall, sixth for ontime performance, eighth in denied boarding, fourth for mishandled baggage, and first for complaints.

April 10, 2003

For the third year in a row, Southwest is recognized as the Best Low Cost Airline at the OAG (Official Airline Guide) Airline of the Year awards.

April 21, 2003

Southwest Airlines' net income for first quarter 2003 was $24 million, compared to first quarter 2002 net income of $21 million, an increase of 14.3 percent. Diluted net income per share was $.03 in both first quarter 2003 and first quarter 2002. Total operating revenues for first quarter 2003 increased 7. 5 percent to $1.35 billion, compared to $1.26 billion for first quarter 2002. Revenue passenger miles increased 4.8 percent in first quarter 2003, compared to 5.3 percent increase in available seat miles, resulting n a load factor of 62.6 percent versus the first quarter 2002 load factor of 62.9 percent.

April 24, 2003

The Franklin Institute presents Herb Kelleher with the 2003 Bower Award for Business Leadership for his remarkable contributions to the aviation industry. Southwest Airlines crosses the finish line with lightening speed today in its race to be the first carrier operating from Bradley International Airport's new East Concourse in Terminal A. Rapid Rewards is honored with first place awards in three categories: Best Award Redemption, Best Bonus Promotion, and Best Customer Service. This is the fifth year for Rapid Rewards to receive first in the Best Award Redemption category.

May 12, 2003

Women in Aviation International name Colleen as one of the top 100 women in aviation.

May 19, 2003

Southwest is named Brand Keys Customer Loyalty Award winner in the airlines category. The annual Brand Keys Customer Loyalty Awards honor the companies that are most single-mindedly devoted to creating loyal customers.

May 20, 2003

Southwest ranks first among airlines (with a score of 75 out of 100) for the highest customer satisfaction according to the survey, which it calls the American Customer Satisfaction Index (ACSI). ACSI scores are produced by an econometric model that combines several components including customer expectations, evaluation of quality, evaluation of value and intention to repurchase.

May 21, 2003

Southwest's financial discipline and strong employment numbers in the Dallas-Fort Worth area combine to rank Southwest in the 16th position on The Dallas Morning News' 2003 "D-FW Top 200" listing of the largest public companies in the area.

June 10, 2003

RAPID CHECK-IN kiosks are installed in STL, making the units available to our customers at each of our airports Systemwide.

June 17, 2003

Southwest Airlines announces that it will add performance-enhancing blended winglets to its current and future fleet of Boeing 737-700's. The visually distinctive winglets improve performance by extending the airplane's range, saving fuel, lowering engine maintenance costs and reducing takeoff noise

June 18, 2003

32nd Anniversary

June 20, 2003

Aviation Week magazine names Herb as one of the "Top 100 Stars of Aerospace." The list includes Leonardo daVinci, Charles Lindbergh, and Chuck Yeager. Southwest Captain and former Astronaut, Robert "Hoot" Gibson is selected to NASA's Astronaut Hall of Fame.

June 23, 2003

Southwest announces its partnership with A&E Network for an all-new, real-life adventure series – a behind the scenes look at the drama surrounding commercial airline travel. AIRLINE will focus on Employees, Customers, and operations at our LAX and MDW Stations and the ten half-hour episodes will debut in first quarter 2004.

July 08, 2003

Karen Price-Ward becomes the first female African-American district marketing manager for Southwest Airlines and at the Company's busiest East Coast destination, BWI.

July 16, 2003

Customers can now change their itineraries at southwest.com.

July 21, 2003

Southwest Airlines' net income for second quarter 2003 was $246 million, compared to second quarter 2002 net income of $102 million. Diluted net income per share was $.30 for second quarter 2003, compared to $.13 for second quarter 2002. Total operating revenues for second quarter 2003 increased to 2.9 percent to $1.52 billion, compared to $1.47 billion for second quarter 2002. Revenue passenger miles increased 4.6 percent in second quarter 2003, compared to a 4.2 percent increase in available seat miles, resulting in a load factor of 70.1 percent versus the second quarter 2002 load factor of 69.9 percent.

August 01, 2003

Southwest Shortcut debuts on southwest.com. The Southwest Shortcut provides Customers with a color-coded calendar indicating which rates are available in the market for which they are interested.

August 11, 2003

Southwest announces new capabilities on the corporate travel booking tool, SWABIZ. Improvements include virtual credit cards, traveler accounts, real-time flight status, booking and tracking expenses, online itinerary changes, e-mail capabilities, ability to apply funds to future travel, and Rapid Rewards double credit.

August 14, 2003

The Bureau of Transportation Statistics announces that Southwest carried more domestic passengers in May than any other airline, marking the first time a low-fare airline has topped the monthly rankings.

August 25, 2003

Flight Status Text Messaging is added to southwest.com.

September 02, 2003

Effective today, Southwest Customers with cell phones onboard may begin using them after the flight attendant gives permission to do so upon landing at the destination and taxi to the airport gate.

September 10, 2003

Operations Agents at MAF begin real-world testing of our new Gate Readers, which are mobile, touch-screen computers used to scan the bar codes on Automated Boarding Passes.

September 29, 2003

After 16 years of offering paper Award and Companion Travel Tickets, Rapid Rewards goes paperless.

October 03, 2003

SeaWorld tickets became available for sale on southwest.com.

October 10, 2003

Chief Executive magazine places Southwest Airlines into its Top 20 list of companies the produce great Leaders. Southwest ranks tenth, up from its 18th place rating the year before.

October 14, 2003

Southwest takes delivery of its first winglet-equipped aircraft, N444WN. The aircraft is dedicated to Southwest friend and publisher of Texas Monthly, Mike Levy, whose picture will appear on the winglets for one month.

October 20, 2003

Southwest reports its 50th straight profitable quarter with earnings of $106 million.

October 28, 2003

Southwest Airlines announces that Philadelphia will become our 60th destination in May 2004 when we launch service to MDW, TPA, MCO, PVD, LAS and PHX out of four gates at PHL.

November 05, 2003

After extensive deliberation, Southwest announces that our nine Reservations Centers will be consolidated into six on February 28, 2004 resulting in the closure of DRC, LRC and URC on that date.

November 14, 2003

The "late bag check" cutoff time is changed from 20 minutes to 30 minutes to better reflect the new security environment. Southwest was the last airline to make this change.

November 24, 2003

Southwest begins adding onboard personal wheelchair compartments to all (except remaining -200s) of its aircraft. The project, which will be completed be the end of 2004, provides storage for one collapsible wheelchair.

December 09, 2003

Downloadable schedules for PDAs in pdf format becomes available.

December 12, 2003

Secretary of Homeland Security Tom Ridges selects Herb to serve as Vice Chair of the Homeland Security Advisory Council's Private Sector Senior Advisory Committee.

December 17, 2003

To honor the 100th anniversary of the first successful powered flight by the Wright Brothers, Southwest Airlines takes delivery of N448WN at the exact time Orville and Wilbur Wright recorded that 12-second flight: 10:35 EST.

December 31, 2003

2003 Milestones: 442,000,000 Revenue Passengers: 65,673,945 Trips Flown: 949,882 Fleet: 388 Employees at yearend: 32,847 Cities opened: n/a Load factor at yearend: 66.8% RPMs at yearend: 47.9 billion ASMs at yearend: 71.8 billion  


January 05, 2004

The day-to-day experiences of Southwest Employees and Customers at LAX and MDW will take center stage tonight when the new real-life series Airline debuts on A&E. The television network will air 18 30-minute episodes on Mondays at 10 p.m. EST to an estimated audience of 1.1 million viewers per episode.

January 08, 2004

Southwest gains the home-field advantage in Philadelphia with the signing of three sports sponsorship agreements. Southwest now reigns as the Official Airline of the National Basketball Association's (NBA) Philadelphia 76ers, the National Hockey League's (NHL) Philadelphia Flyers, and Major League Baseball's (MLB) Philadelphia Phillies. Southwest's Philadelphia sports sponsorship agreements include signage, broadcast partnerships, and charitable and community outreach. Fans attending select Flyers, 76ers, and Phillies events also will have the opportunity to win free trips on Southwest Airlines through specific promotional giveaways.

January 19, 2004

Revenue Ticketless Customers at AMA and MAF are now able to print their boarding passes from southwest.com as Ground Ops begins the long-awaited launch of Internet Checkin. The Internet Checkin option is available only for the first leg of outbound travel from AMA or MAF–transfer and return boarding passes will be available online later this year. Additional cities will receive this capability in the coming weeks–including ABQ, BNA, and FLL–with systemwide rollout planned for early spring.

January 22, 2004

Southwest recorded a profit of $66 million during the fourth quarter of 2003, compared to fourth quarter 2002 net income of $42 million, marking our 51st consecutive profitable quarter. In addition to our quarterly earnings, Southwest also reported our 31st consecutive year of profitability, with annual net income of $442 million, up from $241 million in 2002. Excluding special items in each year, 2003 net income was $298 million compared to $198 million for 2002.

February 05, 2004

Customers systemwide who are traveling with an electronic Ticketless reservation now may print a Boarding Pass online from southwest.com. Previously, an online Customer would print the southwest.com confirmation page and present it to a Customer Service Agent or Skycap at the airport to receive a Boarding Pass. The new online Boarding Pass, however, allows a Customer entry through the airport Security Checkpoint and onboard their scheduled flight, without making an additional stop.

February 11, 2004

Southwest lifts a number of restrictions on our H and M fares to provide our Customers with greater value, more convenient and flexible booking options, and to remain competitive with offerings of other carriers. As a result, the roundtrip, overnight, and "combinability" restrictions that previously affected these fares have been removed. Advance purchase requirements are still in effect, however.

February 16, 2004

The People Benefits Department is named 2004 Heroes of the Heart.

February 24, 2004

Southwest is named America's most admired airline–and the third most admired company overall, down from second last year–in FORTUNE magazine's latest listing of "America's Most Admired Companies." Wal-Mart topped the list for the second straight year, with Berkshire Hathaway finishing second. Rounding out the top ten were GE, Dell, Microsoft, Johnson & Johnson, Starbucks, FedEx, and IBM.

February 28, 2004

Southwest completes the consolidation of our nine Reservations Centers into six when our Centers at Dallas (DRC), Little Rock (LRC), and Salt Lake City (URC) concluded business today. Our six remaining Centers are Albuquerque (ARC), Chicago (CRC), Houston (HRC), Oklahoma City (ORC), Phoenix (PRC), and San Antonio (SRC).

March 04, 2004

Jim and Colleen host first Message to the Field event of the year at Hard Rock Live at Universal Studios in Orlando, Fla.

March 09, 2004

Southwest announces that construction crews soon will break ground on the latest addition to our corporate campus: a five-story addition next to the current five-story portion of Headquarters. The project is scheduled for completion in early 2005.

March 17, 2004

SWALife is launched, allowing Employees to access Company information from any computer, any time, anywhere. SWALife is a secure, password-protected web site, and, unlike FreedomNet, it can be accessed from any computer with an Internet connection 24 hours a day, seven days a week.

March 25, 2004

Before Southwest even begins flying at Philadelphia International Airport (PHL), Herb announces that Southwest will add 14 daily nonstops to our PHL schedule on July 6, doubling the number of daily flights at the airport less than two months after the inauguration of service on May 9.

March 30, 2004

Southwest gives Customers the freedom to book a cruise online at southwest.com. This exciting new functionality will make southwest.com even more of a one-stop shop for all Customer travel needs.

April 05, 2004

Southwest comes in at 310th on this year's FORTUNE 500 listing of the largest U.S. corporations, down four spots from 306th the previous year.

April 06, 2004

For the second year in a row, Southwest finishes third among the largest U.S. airlines in a study ranking carriers on performance criteria ranging from ontime arrivals to mishandled baggage. The top finisher was JetBlue, followed by Alaska.

April 15, 2004

Southwest recorded a profit of $26 million during the first quarter of 2004, compared to first quarter 2003 net income of $24 million, marking our 52nd consecutive profitable quarter.

April 17, 2004

Southwest's 31st and Last Annual Chili Cookoff was held near DAL.

April 19, 2004

At the Dallas Message to the Field, Jim Parker announces that Herb will take over Flight Attendant negotiations because they have "gotten very personal, and therefore, have gotten off track.

April 29, 2004

Southwest's Rapid Rewards frequent flier program is honored with first place awards for Best Award Redemption, Best Customer Service, Best Web Site, Best Award, and Best Bonus Promotion at InsideFlyer magazine's 16th annual Freddie Awards ceremony. In addition to first place awards, Southwest is honored with second place awards in the categories for Program of the Year and Best Newsletter.

May 09, 2004

Southwest inaugurates service from the City of Brotherly Love (PHL) when the first flight departed at 6:50 a.m., bound for MDW. The following morning, a press conference was held at the airport, where Chairman Herb Kelleher and other Southwest Leaders joined Philadelphia Mayor John Street and PHL officials to honor the occasion. Service began with 14 daily nonstop flights from PHL to LAS, MCO, MDW, PHX, PVD, and TPA.

May 19, 2004

Southwest's Annual Shareholders' Meeting is held at Headquarters.

May 27, 2004

Jim and Colleen announce a one-time early retirement offer called "Freedom '04" that is available to any Employee with at least one year of service. The program is offered through June 25.

June 05, 2004

The Frontiers of Flight Museum in Dallas opens its new facility, and one of the main exhibits is the nose section of a retired Southwest 737-200.

June 18, 2004

Southwest celebrates its 33rd anniversary with a ceremony at DAL MX Hangar C, where more than 3,000 Employees gather to witness the christening of another Company milestone: Southwest's 400th aircraft (N467WN)!

June 25, 2004

Southwest launches a Spanish language online booking engine at southwest.com/vamonos in an effort to tap into the nation's largest minority group.

June 26, 2004

Annual Awards Banquet is held at the Wyndham Anatole Hotel in DAL.

June 28, 2004

Southwest and TWU Local 556, which represents Flight Attendants, reach a tentative contract agreement after more than two years of negotiations. The contract must be approved in a vote by the Flight Attendants before it is approved.

July 07, 2004

Customers get the ability to obtain both origin and transfer boarding passes at the start of their trip either at the airport or online at southwest.com.

July 15, 2004

Vice Chairman and Chief Executive Officer Jim Parker announces his retirement from Southwest. Executive Vice President and Chief Financial Officer Gary Kelly is named by the Board to fill both positions, effective immediately. Gary joined Southwest as Controller in 1986, and became Vice President Finance and CFO in 1989. In 2001, he was named Executive Vice President and CFO. Filling Gary's spot as CFO is Laura Wright, who formerly served as Vice President Finance and Treasurer. Laura joined Southwest in 1988.

August 02, 2004

TWU 555, representing Southwest's Flight Attendants, ratifies the new contract.

August 04, 2004

Southwest Airlines and the town of Islip open a new $55 million concourse at MacArthur Airport (ISP), featuring spacious new gate areas and a range of shops and restaurants. 25 daily nonstop flights from the facility will operate out of four gates in the new 114,254-square-foot terminal.

August 05, 2004

Southwest realigns it's organizational structure and fills several new positions, in addition to the previously announced promotion of Laura Wright: Ron Ricks becomes Senior Vice President Law, Airports, and Public Affairs. Tom Nealon becomes Senior Vice President Technology and Chief Information Officer. Dave Ridley fills the Senior Vice President People and Leadership Development position. Bob Jordan becomes the new Senior Vice President Spend Management. Ginger Hardage is named as Senior Vice President Corporate Communications. Beverly Carmichael is the new Senior Vice President Employee and Labor Relations.

August 06, 2004

The first two Southwest aircraft with production-installed winglets–N475WN and N476WN–were delivered separately this week, bringing the fleet to 409 Boeing 737s. Previously, aerodynamic winglets were installed after the jets left the factory.

September 02, 2004

Vice President Safety, Security, and Flight Dispatch Greg Wells is named the Company's new Vice President Ground Operations. Greg started his career with Southwest in 1981 as a Ramp Agent, moving on to nine different cities within Ground Ops in the positions of Ramp Agent, Ops Agent, Ops Sup, Manager of Ramp & Operations, Station Manager, Regional Director, and Senior Director. In 1998, Greg became the Director of the Flight Dispatch Department. In October 2001, he was promoted to Vice President of Safety, Security, and Flight Dispatch.

September 13, 2004

After extensive evaluation of the Dual Boarding Bridge (DBB) project, the decision is made to discontinue the use of the DBBs at DAL Gate 8 and AUS Gate 9. Both bridges have been decommissioned and will remain in use for nose-loading only.

September 16, 2004

Southwest's approximately 1,500 mechanics represented by the Aircraft Mechanics Fraternal Association (AMFA) approve a three-year extension to their agreement with the Company, which was scheduled to become amendable in August 2005. The extended agreement now becomes amendable in August 2008.

September 23, 2004

Inflight Training Class 208–consisting of 114 new Flight Attendants–receive their wings at a Headquarters ceremony. In keeping with Southwest's "Going Where We're Growing" effort, all 114 members of the class were internal applicants who transferred to the Inflight Department.

September 28, 2004

1ST HTML email sent for Click ‘n Save.

October 04, 2004

As part of the Company's ongoing effort to give Employees the "Freedom to Stay Connected" by giving Employees access to all the information they need to do their jobs and continue providing unrivaled Customer Service, CEO Gary Kelly begins recording his thoughts about Southwest's challenges and opportunities weekly on the Employee News Line.

October 08, 2004

Southwest dedicates its newest signature aircraft, "The Spirit of Hope," at a surprise ceremony at Boeing Field in Seattle. The special jet features original overhead bin artwork created by children from Ronald McDonald House Charities® of Western Washington. The overhead bin doors inside the aircraft's cabin are uniquely embossed with brightly-colored crayon drawings of happy hearts, brilliant rainbows, oversized flowers, and smiling faces. "The Spirit of Hope" departed Boeing Field for additional celebrations in DAL, SAT, and PHL. In honor of the 30th birthday of the Ronald McDonald House® program, 30 families from various Ronald McDonald Houses across the southwest flew from Dallas to San Antonio for a vacation to SeaWorld San Antonio. The specialty aircraft joined Southwest's permanent fleet and systemwide schedule on October 11 by making its inaugural public flight from PHL–the birthplace of the first Ronald McDonald House 30 years ago this month.

October 12, 2004

Southwest holds third annual full-scale emergency response exercise, using Employees at Headquarters, HOU, two Reservations Centers, the National Transportation Safety Board, and several Houston-area agencies to test the Company's preparedness in the event of a crisis.

October 14, 2004

Southwest posted a profit of $119 million in the third quarter, compared to a profit of $106 million during the same period last year–an increase of 12.3 percent.

October 27, 2004

Colleen announces that Airline will be filmed for a third season, with HOU Station joining BWI, LAX, and MDW.

October 31, 2004

Southwest's new, "optimized" base schedule takes effect today, resulting in a shift in departure times on over 90 percent of our flights. Along with a shift in flight times, 38 additional nonstop flights took to the air in the biggest schedule shift in Southwest's history. Two of the cities most affected by these new routes are MDW and PHL. MDW is proud to offer a total of eight additional nonstop flights to/from LAX, OAK, TPA, MCO, and PHL; while PHL boasts 13 additional nonstop flights to/from BDL, JAX, OAK, MCO, FLL, LAX, MDW, and MHT.

November 08, 2004

Southwest unveils a new look for the blended winglets featured on its Boeing 737-700s: a southwest.com logo treatment on the inside and outside of the winglets.

November 10, 2004

Southwest and legendary Texas grocery chain H-E-B begin crossing the roads and skies of Texas to make the largest single-event contribution to Texas food banks ever. With a fleet of newly designed trucks and a new Southwest jet filled with food, the "Flight to Fight Hunger" landed in six major cities to donate more than one million pounds of packaged, non-perishable food products among 18 affiliates of America's Second Harvest–The Nation's Food Bank Network.

November 12, 2004

At a meeting of the North Dallas Chamber of Commerce, Gary announces that Southwest is no longer "passionately neutral' about the Wright Amendment. This event is the first of a series of events that will lead to major changes in the law affecting Love Field that culminate in the signing of the Wright Amendment Reform Act of 2006. Multi-Passenger Internet checkin becomes available. Quick booking module goes live on southwest.com.

December 10, 2004

Southwest formally submits our bid in the federal bankruptcy court of Indianapolis for certain ATA Airlines, Inc. (ATA) assets, including a commitment to connect and exchange passengers with ATA, and various financing agreements. Total cash consideration and financing in the ATA bid will exceed $100 million. Southwest's bid includes the acquisition of six Chicago Midway Airport (MDW) gates currently under lease to ATA. The addition of these six gates increases Southwest's capacity by 32 percent, supporting further expansion plans. As part of the bid, Southwest is willing to enter into a code share agreement with ATA, covering certain flights from MDW to approximately nine ATA domestic nonstop destinations. The code share, which will commence next year, could generate additional annual revenue in the $25 to $50 million range for each airline.

December 13, 2004

Booking calendar becomes available on southwest.com.

December 21, 2004

Southwest's bid for various assets of ATA Airlines, along with debtor-in-possession financing, is approved in federal bankruptcy court proceedings. Southwest's approved bid calls for $80 million cash at closing to ATA. Assets acquired include the leasehold of six Chicago Midway Airport gates and an aircraft maintenance hangar. The purchase price for the assets is $40 million, with the remaining $40 million in debtor-in-possession financing. In addition to the cash, Southwest will guarantee payment of an ATA construction loan to the City of Chicago for $7 million. Upon ATA's emergence from bankruptcy, Southwest has committed to convert the debtor-in-possession financing to a term loan, payable over five years. Additionally, Southwest committs to purchase $30 million of convertible preferred stock, in cash, for 27.5 percent of the new ATA. The stock is nonvoting, and it is Southwest's intent to liquidate that position in an orderly manner over time.

December 31, 2004

2004 Milestones: 313 million Revenue Passengers: 70.9 million (81.1 million enplaned) Trips Flown: 981,591 Fleet: 417 Employees at yearend: 31,011 Cities opened: PHL Load factor at yearend: 69.5% RPMs at yearend: 53.4 billion ASMs at yearend: 76.9 billion Station of the Year: LAX DOT Stats: 2nd in Customer Complaints, 4th in Ontime Performance, and 4th in Baggage Handling. Specialty Aircraft Spirit of Hope (Signature Series)—Oct 8

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



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