Southwest Airlines 1998 Annual Report Download - page 28

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28
SOUTHWEST AIRLINES CO. ¤ SIX STORIES OF FREEDOM
Unit costs are expected to continue to benefit in first quarter 1999, versus first quarter
1998, from lower jet fuel prices. Excluding jet fuel costs, operating expenses per ASM
are expected to increase in first quarter 1999 compared to first quarter 1998 primarily
due to higher Profitsharing and Employee savings plan contributions and increased
advertising primarily related to the opening of Islip, New York, on Long Island on March
14, 1999. (The immediately preceding two sentences are forward-looking statements
which involve uncertainties that could result in actual results differing materially from
expected results. Such uncertainties include, but may not be limited to, the largely
unpredictable levels of jet fuel prices.)
Operating expenses per ASM for 1998 and 1997 were as follows:
OPERATING EXPENSES PER ASM
1998 1997
Increase
(Decrease)
Percent
Change
Salaries, wages, and benefits 2.35¢ 2.26¢ .09¢ 4.0%
Employee profitsharing and
savings plans .35 .30 .05 16.7
Fuel and oil .82 1.11 (.29) (26.1)
Maintenance materials and
repairs .64 .58 .06 10.3
Agency commissions .33 .35 (.02) (5.7)
Aircraft rentals .43 .45 (.02) (4.4)
Landing fees and other rentals .45 .46 (.01) (2.2)
Depreciation .47 .44 .03 6.8
Other 1.48 1.45 .03 2.1
Total 7.32¢ 7.40¢ (.08)¢ (1.1)%