Southwest Airlines 2006 Annual Report Download - page 12

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S O U T H W E S T A I RL I N E S C O . A N N U A L R E P O R T 2 0 0 6
While no one knows what the
future of air travel may look like,
two things are certain: It will be
exciting, and Southwest Airlines
will remain at the forefront of
giving America the Freedom to
Fly. We may see new kinds of
airplanes, new kinds of airports,
even new kinds of airlines.
Whatever the future holds, our
Employees, our Customers, and
our Shareholders can rest
assured that Southwest Airlines
will continue to lead the way in
low-cost flying.
While our number one priority is to profitably grow our route system, we also have opportunities to optimize our capital
structure to further enhance Shareholder value. In 2006, your Board authorized stock repurchase programs totaling
$1 billion. During 2006, Southwest repurchased $800 million of common stock through these programs, representing more
than 49 million common shares. Southwest was named one of America’s “Most Shareholder Friendly” companies, and was
recognized for the “Top Performing CEO” in the airline industry by Institutional Investor magazine. And Fortune magazine
picked Southwest Airlines as one of its top ten stock picks for 2007.
Although we have fuel and other cost pressures in 2007, we will continue our efforts to improve productivity and improve
revenue production. We have a stated goal in 2007 to grow economic earnings per diluted share 15 percent compared to
2006. We are evaluating several untapped revenue opportunities to offset higher expected fuel costs and minimize the need
for fare increases. We are dedicated to our Low-Fare Brand, and we are a true Low-Cost Carrier. However, our low-cost
business model does not keep us from providing competitive compensation packages to our People, and we are widely
recognized as one of the best places to work in America. We also operate a young, efficient fleet, ending 2006 with 481 Boeing
737 aircraft. Our fleet consists of 194 -300s, 25 -500s and 262 -700s. Each one of our aircraft has all-leather interiors and
specially designed seats, which provide our Customers more comfort.
We are excited about 2007 and remain confident in our future because we have the best Employees in America. Our
Employees are passionate about our mission to provide America the Freedom to Fly, and for more than 35 years they have
demonstrated that they genuinely care about our Customers, the communities we serve, and our Shareholders. It is that
passion that has made Southwest one of the most respected brands in America. For the tenth straight year, Southwest was
recognized in 2006 by Fortune magazine as one of America’s Most Admired Companies.
BOY: Is this yourrst ight? VO: On Southwest Airlines our leather
seats, blankets, pillows, snacks...
...and smiles are always free. SFX: DING
VO: You are now free to move about
the country.
Ne w Di re ct io n s : T h e F u t u r e L o o k s V e r y B r i g h t .
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