Southwest Airlines 1995 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 1995 Southwest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 46

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46

4
To Our Shareholders:
In fourth quarter 1994 and first quarter 1995, our year over year earnings
were down substantially as the proud and beloved People of Southwest
Airlines defended themselves against simultaneous assaults from
Continental Lite and the United Shuttle. Because of my supreme
confidence in the dedication, martial vigor, and extreme valor of our
People, I predicted in our 1994 Annual Report that Southwest’s fortunes
would begin to recover in the second quarter of 1995. I also said that:
“While a number of other airlines may attempt to imitate Southwest, none
of them can duplicate the spirit, unity, ‘ can do’ attitudes, and marvelous
esprit de corps of the Southwest Employees, who continually provide
superb Customer Service to each other and to the traveling public. Just
as the past has belonged to Southwest because of our People’s goodwill,
dedication, and energy, so shall Southwest seize the future!”
As of today, Continental Lite has ceased to exist and the United Shuttle has
substantially receded from Southwest’s Oakland, California, markets. Because of
our Employees’ indefatigable efforts, a 72 percent year over year decline in first
quarter 1995 profits has been transmogrified into a 1995 record annual profit of
$182,626,000 ($1.23 per share), a two percent increase over the $179,331,000
($1.22 per share) of 1994.
Our fourth quarter 1995 earnings of $43,359,000 ($.29 per share) made a very
substantial contribution to our 1995 “turnaround,” as they exceeded 1994’s
$20,343,000 ($.14 per share) by 113 percent.
Despite the adverse cost impact of the recently effective 4.3 cents per gallon
federal jet fuel tax, accompanied, as well, by thus far moderate increases in jet
fuel prices, from this early vantage point we presently anticipate, barring any
unforeseen and deleterious external events, that our first quarter 1996 earnings
will substantially exceed those of first quarter 1995.