Southwest Airlines 2009 Annual Report Download - page 3

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containing costs, maximizing productivity, improving the Customer Experience,
winning more Customers, delivering new revenue-generating products, and driving
more revenues. In particular, we plan to focus on the following revenue initiatives in
2010 and 2011:
• Continued schedule optimization, enabling the May 2010 opening of Panama
City Beach, Florida, an innovative opportunity to collaborate with the St. Joe
Company
• Launch of onboard wireless internet access beginning in spring 2010 and
targeting early 2012 as our completion date for fleet-wide implementation
• Development of international marketing partnerships
• Development of the next generation Rapid Rewards frequent flyer program
• Continued deployment of enhancements to southwest.com
• Continued revenue management enhancements
In addition, we will continue to focus on keeping Southwest financially strong.
Currently, our total liquidity exceeds $3 billion, including cash on-hand, short-term
investments, and our fully-available bank line-of-credit. Based on our current
projection for operations, capital spending, and debt service, we expect our liquidity to
increase further in 2010.
Our balance sheet remains investment-grade strong, with debt-to-total capital
of 45 percent. As with liquidity, based on our current projections, we expect our
balance sheet to strengthen further in 2010, with no material financing requirements.
Finally, we have significant fuel hedge protection in place, if prices increase from
current levels, as detailed in our year-end financial statements. We are financially
strong and believe we are well-prepared for the continued tough times ahead of us.
I will forever be grateful to our People for what they achieved in 2009. They
persevered, with dramatic challenges, continuous change, and amid much economic
anxiety. Despite that, they produced outstanding results in ontime performance,
baggage handling, and Customer satisfaction. Our Customers rate Southwest service
levels, arguably, higher than ever. And, we remain among the top low-cost producers
of major airlines, and America’s preferred Low Fare airline. Our Employees are the
best and the reason Southwest continues to outperform our competitors.
Gary C. Kelly
Chairman of the Board, President,
and Chief Executive Officer
March 10, 2010