Performance

Ft. Lauderdale-Hollywood International Expansion

In summer of 2017, we came one step closer to achieving our Vision to become the world’s most loved, most flown, and most profitable airline11) 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. with the expansion of Terminal 1 at Ft. Lauderdale-Hollywood International Airport (FLL).

The newly built Concourse A is an important launch point for the international expansion of our business. Newly added routes from FLL included Belize; Cancun; Grand Cayman; Montego Bay; San Jose, Costa Rica; and Turks and Caicos.

Concourse A is a state-of-the-art facility with an abundance of natural light, restaurants, and shops, as well as gate area seating with embedded electrical charging outlets, a pet relief area, and art installations. But the real benefit of the new concourse lies in the convenience it provides for our international Customers.

“Prior to the opening of Concourse A, international travelers had to arrive at Terminal 4 and then make their way to the opposite side of the airport and recheck their bags to connect to their domestic flights in Terminal 1,” says Steven Swan, Southwest’s Director of International Planning and Partnerships. The Terminal 1 expansion provides seamless flow between domestic and international flights, streamlining connectivity for travelers passing through FLL.

Concourse A not only enhances the Customer Experience, it supports international growth for Southwest11) 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.. South Florida represents the second largest market for international travel from inside the U.S.55) As measured by the U.S. DOT’s O&D Survey for the 12 months ended Dec. 31, 2017 based on domestic originating passengers. O&D stands for Origin and Destination. Since the opening of Concourse A, we also have added new domestic flights to FLL, enabling Customers from all over the country to reach popular international destinations. With the launch of expanded domestic and international service from FLL in the summer of 2017, our total seats increased more than 40 percent from the previous summer’s schedule, and by the end of 2017, we offered more than 20 percent of the scheduled available airline seats at FLL.2020) Source: Diio directional data for July 2016 vs. December 2017 for all travel from Ft. Lauderdale-Hollywood International Airport. Information includes all nonstop passenger flights and all seats in all cabins.

 

“Ft. Lauderdale is perfectly situated to transport travelers to the Caribbean, Central America, and the northern rim of South America,” says Steven. “These destinations are critically important for our Customers in this market. The more relevant destinations we can offer to Customers in South Florida, the more likely they will be to fly Southwest in other markets as well.”

“And because Ft. Lauderdale is a lower cost airport, we’re able to pass on savings to Customers—something that wouldn’t be possible for an airline operating out of Miami International Airport. It’s a win-win for our Customers and for our business.”

“It all goes back to taking Customers where they want to go,” says Steven. “By continuing to stretch our reach into new markets, we are ultimately making it easier for People to travel to places that are important to them.”

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