Southwest Airlines 2011 Annual Report Download - page 4

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Service; and safe, excellent, and efficient airline operations. Southwest Airlines is
America’s largest domestic airline, as measured by originating domestic passengers
boarded (based on third quarter 2011 data from the U.S. Department of
Transportation (DOT)). We remain one of the lowest cost producers among major
airlines with one of the world’s largest mainline fleets. We repeatedly hold one of the
top DOT rankings in Customer Satisfaction. And, we continue to rank high on
FORTUNE magazine’s list of the World’s Most Admired Companies.
As we prepare for our next 40 years, our financial goals remain unchanged:
‰Take good care of our People
‰Win more Customers
‰Boost operating revenues
‰Preserve our low cost position
‰Maintain a strong balance sheet
‰Achieve and sustain a 15 percent pre-tax return on invested capital
The challenges of the last decade have been daunting for the airline industry.
The worst economic recession in aviation history, a worldwide credit crisis, and
energy prices rising over five-fold have resulted in total financial losses for the U.S.
airline industry in excess of $50 billion. Many U.S. airlines succumbed to the
challenges by either ceasing operations or reorganizing through bankruptcy.
Southwest Airlines, in stark contrast, prevailed. We are the only major U.S. carrier
that provided annual profits to its Shareholders for 39 consecutive years. Our People
were undaunted. The notable list of accomplishments in 2011, alone, is attributable to
the championship efforts of our Employees. It is because of their unwavering Warrior
Spirits that we accomplished all that we did in 2011, and they deserve our thanks.
Gary C. Kelly
Chairman of the Board, President,
and Chief Executive Officer
March 16, 2012
NOTE: Free cash flow is calculated as operating cash flows of $1.4 billion less capital expenditures of $968
million. Additional information regarding non-GAAP, including “combined,” financial measures is included in the
accompanying Form 10-K for the fiscal year ended December 31, 2011.