Southwest Airlines 2015 Annual Report Download - page 58

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ratified a new four-year contract, Meteorologists, who approved their first-ever collective bargaining
agreement, Flight Attendants, Pilots, and Ramp, Operations, Provisioning, and Freight Agents. 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 7,600
Southwest Airlines Pilots’
Association (“SWAPA”) August 2012
Southwest Flight Attendants 13,100
Transportation Workers of America,
AFL-CIO, Local 556 (“TWU 556”) May 2013
Southwest Ramp, Operations,
Provisioning, Freight Agents 11,000
Transportation Workers of America,
AFL-CIO, Local 555 (“TWU 555”) June 2011
Southwest Material Specialists
(formerly known as Stock Clerks) 300
International Brotherhood of
Teamsters, Local 19 (“IBT 19”) August 2013
Southwest Mechanics 2,300
Aircraft Mechanics Fraternal
Association (“AMFA”) August 2012
Southwest Facilities
Maintenance Technicians 40 AMFA N/A
Southwest Flight Crew
Training Instructors 80
Transportation Workers of America,
AFL-CIO, Local 557 (“TWU 557”) December 2015
Southwest Source of Support
Representatives 90 IAM 142 N/A
Fuel and oil expense for 2015 decreased by $1.7 billion, or 31.7 percent, compared with 2014. On a per
ASM basis, Fuel and oil expense for 2015 decreased 36.4 percent, compared with 2014. Excluding the
impact of fuel hedge accounting, both the dollar and per ASM decreases were attributable to lower jet
fuel prices. The Company’s average economic jet fuel price per gallon decreased 29.1 percent
year-over-year, from $2.92 for 2014 to $2.07 for 2015. The Company also slightly improved fuel
efficiency, when measured on the basis of ASMs generated per gallon of fuel, primarily as a result of
modernization of the Company’s fleet and a 4.0 percent increase in stage length. Fuel gallons
consumed increased 5.6 percent, compared with 2014, while year-over-year capacity increased
7.2 percent.
As a result of the Company’s fuel hedging program, the Company recognized losses
totaling $254 million in Fuel and oil expense for 2015, compared with
net gains totaling $28 million for 2014. These totals include cash settlements realized from the
settlement of fuel derivative contracts totaling $577 million paid to counterparties for 2015, compared
to $56 million received from counterparties for 2014, although such 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.
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