Southwest Airlines 2013 Annual Report Download - page 59

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The following table sets forth the Company’s unionized Employee groups that are currently in negotiations
on collective-bargaining agreements:
Employee Group
Approximate Number
of Employees Representatives Amendable Date
Southwest Pilots .............. 6,200 Southwest Airlines Pilots’
Association (“SWAPA”)
August 2012
Southwest Flight Attendants ..... 10,100 Transportation Workers of
America, AFL-CIO, Local 556
(“TWU 556”)
May 2013
Southwest Ramp, Operations,
Provisioning, Freight Agents . .
9,500 Transportation Workers of
America, AFL-CIO, Local 555
(“TWU 555”)
June 2011
Southwest Customer Service
Agents, Customer
Representatives .............
6,000 International Association of
Machinists and Aerospace
Workers, AFL-CIO (“IAM
142”)
October 2012
Southwest Materials Specialists
(formerly known as Stock
Clerks)....................
200 International Brotherhood of
Teamsters, Local 19 (“IBT 19”)
August 2013
Southwest Mechanics .......... 2,200 Aircraft Mechanics Fraternal
Association (“AMFA”)
August 2012
Southwest Flight Simulator
Technicians ................
30 International Brotherhood of
Teamsters (“IBT”)
October 2013
Southwest Facilities Maintenance
Technicians ................
40 AMFA N/A
Fuel and oil expense for 2013 decreased by $357 million, or 5.8 percent, compared to 2012. On a per ASM
basis, Fuel and oil expense for 2013 decreased 7.5 percent compared to 2012. Excluding the impact of fuel hedge
accounting, approximately 75 percent of both the dollar and per ASM decreases were attributable to reduced fuel
price per gallon, with the remainder attributed to improved fuel efficiency. During 2013, the Company’s average
economic jet fuel price per gallon, including fuel tax, was $3.12, compared to $3.28 during 2012, a decrease of
4.9 percent. In addition, fuel gallons consumed decreased 1.6 percent compared to 2012, while year-over-year
capacity increased 1.7 percent. The improvement in fuel efficiency was primarily due to the Company’s
continued replacement of older 737-300 and 737-500 aircraft with newer 737-700 and 737-800 aircraft.
As a result of the Company’s fuel hedging program and inclusive of accounting for derivatives and
hedging, the Company recognized net losses totaling $118 million during 2013 in Fuel and oil expense relating to
fuel derivative instruments versus net losses totaling $157 million recognized in Fuel and oil expense in 2012.
These totals are inclusive of cash settlements realized from the settlement of fuel derivatives, which were $34
million paid to counterparties in 2013, versus $125 million paid to counterparties in 2012. These totals exclude
gains and/or losses recognized from hedge ineffectiveness and from derivatives that do not qualify for hedge
accounting, these impacts are recorded as a component of Other (gains) losses, net. See Note 10 to the
Consolidated Financial Statements.
As of January 17, 2014, on an economic basis, the Company had derivative contracts in place related to
expected future fuel consumption as follows:
Average percent of estimated fuel consumption
Period
covered by fuel derivative contracts at
varying WTI/Brent crude-equivalent price levels
2014 ...... Approx. 20%
2015 ...... Approx. 40%
2016 ...... Approx. 35%
2017 ...... Approx. 50%
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