Performance

A New Reservation System

In 2017, we successfully completed the implementation of a new reservation system. This was the largest technology transformation in Southwest’s history. After the integration of AirTran that gave Southwest the opportunity to fly internationally, we selected and deployed the Amadeus Altéa Passenger Service System as Southwest’s international reservation platform in 2014. We then set out to replace our domestic reservation platform with Altéa, in order to serve our entire network with a single reservation system.

In December 2016, we began selling tickets for domestic travel in Altéa. And on May 9, 2017, we successfully began operating all flights in the new reservation system, providing Southwest with a single reservation system for domestic and international reservations. Between May 9 and the end of 2017, more than 100 million Passengers boarded more than 850,000 flights2121) Scheduled, non-canceled flights only and includes both domestic and international operations. completed in the new system, the conversion to Altéa generated more than 1,000 neutral or positive mentions in the media,2222) Social and news media mentions. and our airport Frontline Employees achieved an outstanding Hospitality score of 89 percent while transitioning to the new system.2323) Score is derived from Customer survey feedback provided between March 1 and Dec. 31, 2017 regarding Southwest Employees making Customers feel welcomed, cared for, and appreciated throughout the airport experience. “Our new reservation system gives us the opportunity to unlock new capabilities and incremental revenue opportunities11) The 2017 Southwest Airlines One Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s Vision; (ii) the Company’s network and growth plans, strategies, opportunities, and expectations; (iii) the Company’s financial position, outlook, goals, targets, strategies, plans, expectations, and projected results of operations, including specific factors expected to impact the Company’s results of operations; (iv) the Company’s plans and expectations with respect to its new reservation system and other technology initiatives, and the Company’s related multi-faceted financial and operational expectations and opportunities; (v) the Company’s capacity plans and expectations; (vi) the Company’s fleet plans, strategies, and expectations, including its fleet modernization initiatives, and the Company’s related financial and operational expectations; (vii) the Company’s operational initiatives and related plans and expectations, including with respect to its technology initiatives; (viii) the Company’s expectations related to its management of risk associated with changing jet fuel prices; (ix) the Company’s expectations and goals with respect to returning value to Shareholders; and (x) the Company’s other initiatives, including construction, safety, and environmental initiatives, and related plans and expectations. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) changes in demand for the Company's services and other changes in consumer behavior; (ii) the impact of a continually changing business environment, economic conditions, fuel prices, actions of competitors (including without limitation pricing, product, scheduling, capacity, and network decisions, and consolidation and alliance activities), and other factors beyond the Company’s control, on the Company's business decisions, plans, strategies, and results; (iii) the impact of governmental regulations and other governmental actions related to the Company's operations; (iv) the Company’s dependence on third parties, in particular with respect to its fleet and technology plans; (v) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vi) the Company’s ability to timely and effectively prioritize its initiatives and related expenditures; (vii) the impact of labor matters on the Company’s business decisions, plans, strategies, and costs; (viii) changes in aircraft fuel prices, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions; and (ix) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017.. This new technology helps position us to further execute against our Company strategy and achieve our Vision of becoming the world’s most loved, most flown, and most profitable airline,”11) The 2017 Southwest Airlines One Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s Vision; (ii) the Company’s network and growth plans, strategies, opportunities, and expectations; (iii) the Company’s financial position, outlook, goals, targets, strategies, plans, expectations, and projected results of operations, including specific factors expected to impact the Company’s results of operations; (iv) the Company’s plans and expectations with respect to its new reservation system and other technology initiatives, and the Company’s related multi-faceted financial and operational expectations and opportunities; (v) the Company’s capacity plans and expectations; (vi) the Company’s fleet plans, strategies, and expectations, including its fleet modernization initiatives, and the Company’s related financial and operational expectations; (vii) the Company’s operational initiatives and related plans and expectations, including with respect to its technology initiatives; (viii) the Company’s expectations related to its management of risk associated with changing jet fuel prices; (ix) the Company’s expectations and goals with respect to returning value to Shareholders; and (x) the Company’s other initiatives, including construction, safety, and environmental initiatives, and related plans and expectations. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) changes in demand for the Company's services and other changes in consumer behavior; (ii) the impact of a continually changing business environment, economic conditions, fuel prices, actions of competitors (including without limitation pricing, product, scheduling, capacity, and network decisions, and consolidation and alliance activities), and other factors beyond the Company’s control, on the Company's business decisions, plans, strategies, and results; (iii) the impact of governmental regulations and other governmental actions related to the Company's operations; (iv) the Company’s dependence on third parties, in particular with respect to its fleet and technology plans; (v) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vi) the Company’s ability to timely and effectively prioritize its initiatives and related expenditures; (vii) the impact of labor matters on the Company’s business decisions, plans, strategies, and costs; (viii) changes in aircraft fuel prices, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions; and (ix) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017. says Kathleen Wayton, Southwest Senior Vice President of Technology and Chief Information Officer. “Our reservation system is the foundation for our future, and we truly owe this labor of love to our incredible Southwest Warriors.” This state-of-the-art technology was designed to improve flight scheduling and inventory management; enable operational enhancements to manage flight disruptions, such as those caused by extreme weather conditions; enable revenue enhancements; further schedule optimization; support additional international growth; and enable other foundational and operational capabilities.11) The 2017 Southwest Airlines One Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s Vision; (ii) the Company’s network and growth plans, strategies, opportunities, and expectations; (iii) the Company’s financial position, outlook, goals, targets, strategies, plans, expectations, and projected results of operations, including specific factors expected to impact the Company’s results of operations; (iv) the Company’s plans and expectations with respect to its new reservation system and other technology initiatives, and the Company’s related multi-faceted financial and operational expectations and opportunities; (v) the Company’s capacity plans and expectations; (vi) the Company’s fleet plans, strategies, and expectations, including its fleet modernization initiatives, and the Company’s related financial and operational expectations; (vii) the Company’s operational initiatives and related plans and expectations, including with respect to its technology initiatives; (viii) the Company’s expectations related to its management of risk associated with changing jet fuel prices; (ix) the Company’s expectations and goals with respect to returning value to Shareholders; and (x) the Company’s other initiatives, including construction, safety, and environmental initiatives, and related plans and expectations. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) changes in demand for the Company's services and other changes in consumer behavior; (ii) the impact of a continually changing business environment, economic conditions, fuel prices, actions of competitors (including without limitation pricing, product, scheduling, capacity, and network decisions, and consolidation and alliance activities), and other factors beyond the Company’s control, on the Company's business decisions, plans, strategies, and results; (iii) the impact of governmental regulations and other governmental actions related to the Company's operations; (iv) the Company’s dependence on third parties, in particular with respect to its fleet and technology plans; (v) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vi) the Company’s ability to timely and effectively prioritize its initiatives and related expenditures; (vii) the impact of labor matters on the Company’s business decisions, plans, strategies, and costs; (viii) changes in aircraft fuel prices, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions; and (ix) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017.

Our new reservation system gives us the opportunity to unlock new capabilities and incremental revenue opportunities. This new technology helps position us to further execute against our Company strategy and achieve our Vision of becoming the world’s most loved, most flown, and most profitable airline. Our reservation system is the foundation for our future, and we truly owe this labor of love to our incredible Southwest Warriors.
—Kathleen Wayton, Southwest Senior Vice President of Technology and Chief Information Officer

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