Southwest Airlines 2004 Annual Report Download - page 1

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2000 2001 2002 2003
Return On Stockholders’ Equity
2000 2001 2002 2003 2004
Operating Margin
21%
18%
15%
12%
9%
6%
18.1%
11.4%
7.6% 8.5%
8.1%
20%
15%
10%
5%
19.9%*
13.7%
5.7% 5.9%
2004
9.3%
Net Income
(in millions)
Excludes cumulative effect of change
in accounting principle of $22 million Excludes cumulative effect of change
in accounting principle of $22 million
2000 2001 2002 2003
$700
$600
$500
$400
$300
$200
$100
$625*
* *
$511
$241
2004
$442
$313
9.6%
14.7%
0.4
pts.
(29.2)%
(2.6)
pts.
(28.6)%
(29.6)%
9.3%
(3.4)
pts.
9.2%
8.0%
11.4%
7.1%
2.7
pts.
(1.8)%
2.8%
2.2%
7.5%
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
(5.6)%
Number of Employees at yearend
Stockholders’ equity per common share outstanding
Return on average stockholders’ equity
CONSOLIDATED HIGHLIGHTS
Operating revenues
10.0%
CHANGE
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
$5,976
$554
8.5%
$313
4.8%
$.40
$.38
$5,524
5.9%
$6.99
70,902,773
53,418,353
76,861,296
69.5%
11.76¢
8.5 0 ¢
7.77¢
417
31,011
$6,530
2004
$5,454
$483
8.1%
$442
7.4%
$.56
$.54
$5,052
9.3%
$6.40
65,673,945
47,943,066
71,790,425
66.8%
11.97¢
8.2 7 ¢
7.60¢
388
32,847
$5,937
2003
Southwest Airlines Co. is the nation’s low-fare, high Customer Satisfaction airline. We primarily serve shorthaul and
mediumhaul city pairs, providing single-class air transportation which targets business and 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 2004, Southwest operated 417 Boeing 737 aircraft
and provided service to 60 airports in 31 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, Shareholder, and Customer relationships.

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