Southwest Airlines 1998 Annual Report Download - page 1

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1
SOUTHWEST AIRLINES CO. ¤ SIX STORIES OF FREEDOM
Table Of Contents
Consolidated Highlights .............................................................................................................. 1
Preamble.................................................................................................................................... 3
Letter to Shareholders ................................................................................................................ 4
First Story of Freedom................................................................................................................ 6
Second Story of Freedom........................................................................................................... 9
Third Story of Freedom............................................................................................................. 12
Fourth Story of Freedom........................................................................................................... 15
Fifth Story of Freedom.............................................................................................................. 18
Sixth Story of Freedom............................................................................................................. 21
System Map ............................................................................................................................. 24
Financial Review ...................................................................................................................... 25
Management’s Discussion and Analysis.................................................................................... 25
Consolidated Financial Statements........................................................................................... 41
Notes to Consolidated Financial Statements............................................................................. 45
Report of Independent Auditors ................................................................................................ 62
Quarterly Financial Data ........................................................................................................... 63
Common Stock Price Ranges and Dividends............................................................................ 63
Ten-Year Summary .................................................................................................................. 64
Corporate Data ......................................................................................................................... 66
Directors and Officers............................................................................................................... 67
Consolidated Highlights
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 1998 1997 CHANGE
Operating revenues $4,163,980 $3,816,821 9.1%
Operating expenses $3,480,369 $3,292,585 5.7%
Operating income $683,611 $524,236 30.4%
Operating margin 16.4% 13.7% 2.7 pts.
Net income $433,431 $317,772 36.4%
Net margin 10.4% 8.3% 2.1 pts.
Net income per share – basic $1.30 $.97 34.0%
Net income per share – diluted $1.23 $.93 32.3%
Stockholders’ equity $2,397,918 $2,009,018 19.4%
Return on average stockholders’ equity 19.7% 17.4% 2.3 pts.
Stockholders’ equity per common share outstanding $7.14 $6.05 18.0%
Revenue passengers carried 52,586,400 50,399,960 4.3%
Revenue passenger miles (RPMs) (000s) 31,419,110 28,355,169 10.8%
Available seat miles (ASMs) (000s) 47,543,515 44,487,496 6.9%
Passenger load factor 66.1% 63.7% 2.4 pts.
Passenger revenue yield per RPM 12.62 12.84¢ (1.7)%
Operating revenue yield per ASM 8.76¢ 8.58¢ 2.1%
Operating expenses per ASM 7.32¢ 7.40¢ (1.1)%
Number of Employees at yearend 25,844 23,974 7.8%

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