Southwest Airlines 2002 Annual Report Download - page 1

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Southwest Airlines Co. is the nation’s low-fare, high Customer Satisfaction airline. We primarily serve shorthaul city pairs, providing
single-class air transportation which targets the business commuter as well as leisure travelers. The Company, incorporated in Texas,
commenced Customer Service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities – Dallas, Houston, and San
Antonio. At yearend 2002, Southwest operated 375 Boeing 737 aircraft and provided service to 59 airports in 30 states throughout the
United States. Southwest has one of the lowest operating cost structures in the domestic airline industry and consistently offers the
lowest and simplest fares. Southwest also has one of the best overall Customer Service records. LUV is our stock exchange symbol,
selected to represent our home at Dallas Love Field, as well as the theme of our Employee and Customer relationships.
1998 1999 2000 2001 2002
Net Margin
12%
10%
8%
6%
4%
2%
10.4% 10.0%
11.1%
9.2%
4.4%
$5,104,433 $4,924,052
$417,338 $631,122
7.6% 11.4%
$240,969 $511,147
4.4% 9.2%
$0.31 $0.67
$0.30 $0.63
$4,421,617 $4,014,053
5.7% 13.7%
$5.69 $5.24
63,045,988 64,446,773
45,391,903 44,493,916
68,886,546 65,295,290
65.9% 68.1%
11.77¢ 12.09¢
8.0 2 ¢ 8.51¢
7.41¢ 7.54¢
375 355
3.7%
(33.9)%
(3.8)
pts.
(52.9)%
(4.8)
pts.
(53.7)%
(52.4)%
10.2%
(8.0)
pts.
8.6%
(2.2)%
2.0%
5.5%
(2.2)
pts.
(2.6)%
(5.8)%
(1.7)%
5.6%
Operating expenses
Operating income
Operating margin
Net income
Net margin
Net income per share – basic
Net income per share – diluted
Stockholders’ equity
Revenue passengers carried
Revenue passenger miles {RPMs} (000s)
Available seat miles {ASMs} (000s)
Passenger load factor
Passenger revenue yield per RPM
Operating revenue yield per ASM
Operating expenses per ASM
Size of fleet at yearend
33,705 31,580 6.7%
Number of Employees at yearend
Stockholders’ equity per common share outstanding
Return on average stockholders’ equity
CONSOLIDATED HIGHLIGHTS
Operating revenues
2001
$5,521,771 $5,555,174
2002
(0.6)%
CHANGE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1998 1999 2000 2001 2002
Net Income Per Share, Diluted
$0.80
$0.70
$0.60
$0.50
$0.40
$0.30
$0.55 $0.59
$0.79*
$0.63
$0.30
Excludes cumulative effect of change
in accounting principle of $0.03.
*
1998 1999 2000 2001 2002
Return On Stockholders’ Equity
25%
20%
15%
10%
5%
19.7% 18.1% 19.9%
13.7%
5.7%

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