Southwest Airlines 1997 Annual Report Download - page 1

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SOUTHWEST AIRLINES CO. ♥ FIVE SYMBOLS OF FREEDOM
TABLE OF CONTENTS
Consolidated Highlights ....................................................................................... 1
Preamble .............................................................................................................. 3
Letter to Shareholders.......................................................................................... 4
First Symbol of Freedom ...................................................................................... 6
Second Symbol of Freedom ................................................................................. 9
Third Symbol of Freedom................................................................................... 12
Fourth Symbol of Freedom................................................................................. 15
Fifth Symbol of Freedom .................................................................................... 18
Future of Freedom.............................................................................................. 21
Destinations........................................................................................................ 24
Triple Crown One ............................................................................................... 25
Financial Review ................................................................................................ 26
Management’s Discussion and Analysis ............................................................ 26
Consolidated Financial Statements.................................................................... 36
Report of Independent Auditors ......................................................................... 51
Quarterly Financial Data .................................................................................... 52
Common Stock Price Ranges and Dividends..................................................... 52
Ten-Year Summary ............................................................................................ 53
Corporate Data................................................................................................... 55
Directors and Officers......................................................................................... 56
CONSOLIDATED HIGHLIGHTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1997 1996 CHANGE
Operating revenues $3,816,821 $3,406,170 12.1%
Operating expenses $3,292,585 $3,055,335 7.8%
Operating income $524,236 $350,835 49.4%
Operating margin 13.7% 10.3% 3.4 pts.
Net income $317,772 $207,337 53.3%
Net margin 8.3% 6.1% 2.2 pts.
Net income per share, basic $1.45 $.95 52.6%
Net income per share, diluted $1.40 $.92 52.2%
Stockholders’ equity $2,009,018 $1,648,312 21.9%
Return on average stockholders’ equity 17.4% 13.5% 3.9 pts.
Stockholders’ equity per common share outstanding $9.08 $7.57 19.9%
Revenue passengers carried 50,399,960 49,621,504 1.6%
Revenue passenger miles (RPMs) (000s) 28,355,169 27,083,483 4.7%
Available seat miles (ASMs) (000s) 44,487,496 40,727,495 9.2%
Passenger load factor 63.7% 66.5% (2.8) pts.
Passenger revenue yield per RPM 12.84¢12.07¢6.4%
Operating revenue yield per ASM 8.58¢8.36¢2.6%
Operating expenses per ASM 7.40¢7.50¢(1.3)%
Number of Employees at yearend 23,974 22,944 4.5%

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