Southwest Airlines 1998 Annual Report Download - page 6

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6
SOUTHWEST AIRLINES CO. ¤ SIX STORIES OF FREEDOM
“We, the People of Southwest Airlines, give our
Customers the freedom to fly. Every Customer is entitled
to three simple rights: Low fares, lots of flights, and the friendliest
service in the sky.”
— Elizabeth P. Sartain, Vice President — People
Southwest Airlines stands for freedom and we are committed to providing our
Customers something different in the airline industry: everyday low fares and superior
Customer Service. That philosophy served us well again in 1998, as we recorded our
26th consecutive year of profitability and our seventh consecutive record profit.
Earnings for 1998 were up 36 percent with a net profit margin of 10.4 percent and
return on equity of 19.7 percent. This kind of financial performance is tops in our
industry, as is our Customer Service. Very different for an airline. But then we are very
different.
Our operating strategy is unique in the U.S. airline industry. While the rest of the
industry has matured, our niche remains a growth market for Southwest. We are a low-
fare, high-frequency, point-to-point, shorthaul air carrier. Our operation is efficiently
designed to maximize productivity, which reduces costs and maintains our high quality
service. We are the low-cost producer in the U.S. airline industry, and that allows us to
profitably deliver on our philosophy of everyday low fares.
Low cost doesn’t mean less service or low wages. Although we offer competitive
compensation packages, it is our rich Culture and dedicated People that make
Southwest Airlines such a special place. For the second year in a row, Fortune
magazine has named Southwest Airlines one of the best companies to work for in
America, a testament to the outstanding People and relationships in our Company.
Fortune also recognized Southwest as America’s most admired airline and one of
America’s most admired corporations. Finally, Southwest has been recognized as one
of the world’s safest airlines.