Southwest Airlines 2014 Annual Report Download - page 3
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As of January 22, 2015, we had un-hedged this year’s fuel hedging positions, and substantially
reduced future years’ positions. We will continue to carefully manage our fuel hedging
portfolio to minimize the ever present risk of rising fuel prices.
As before the collapse in oil prices, we plan to prudently grow our B737 fleet after this
year in pursuit of numerous attractive growth opportunities. We have close to 50 additional
destinations to consider serving to and from the United States with the B737. In addition, we
have attractive opportunities to grow domestically and leverage our position as America’s
largest airline, in terms of originating Customers3.
Our goals for 2015 are straightforward: grow earnings, meet or beat 2014’s ROIC, and
improve upon our already-exceptional service with enhanced Hospitality and Reliability.
While the strategic initiatives of the past four years are essentially complete (or being
implemented), work remains, this year and beyond, to fine-tune the changes implemented and
to complete the replacement of our reservation system. Beyond 2015, our objectives are to
sustain the strong earnings momentum, grow the airline at a sensible rate, and continue to
enhance our Customer Service and Experience.
I am enormously proud of our People. These are truly remarkable 2014 results, and
they would not have been possible without the Warrior Spirits of our People. It has been a
long, decade-plus period of challenges and change. They not only survived it without resorting
to bankruptcy, they also delivered Shareholder returns and built a better airline. Now, through
their hard work, they have positioned Southwest stronger than ever, and with future
opportunities we believe are brighter than ever.
In 1971, Southwest set out to democratize the skies by offering low fares, but with
great service. We did that. Our Purpose, then and now, is to connect Customers to what’s
important in their lives with friendly, reliable, and low-cost air travel. Today, our Vision is to
become the World’s Most Loved, Most Flown, and Most Profitable Airline. Air Transport
World bestowed the terrific honor on our People as “2015 Airline of the Year” for their 2014
performance. And, for the 21st consecutive year, Southwest was recently named to
FORTUNE’s list of World’s Most Admired Companies – the only airline to rank in the Top
Ten. As always, but even more so for 2014, I am extraordinarily proud of our People. Please
join me in thanking them.
Gary C. Kelly
Chairman of the Board, President,
and Chief Executive Officer
March 15, 2015
3As measured by the number of originating domestic passengers boarded and based on data available from the U.S.
Department of Transportation (DOT), as of September 30, 2014.