DALLAS, Jan. 2, 2018 /PRNewswire/ -- Southwest
Airlines Co. (NYSE: LUV) announced today the Company's plans to
celebrate the recent tax reform legislation.
The Southwest Board of Directors authorized a bonus to all
Southwest Airlines Employees to celebrate the recent passage of the
tax reform legislation. All Fulltime and Parttime Southwest
Employees employed with Southwest on Dec.
31, 2017, will receive a $1,000 cash bonus on Jan.
8, 2018.
"We applaud Congress and the President for taking this action to
pass legislation, which will result in meaningful corporate income
tax reform for the transportation sector in general, and for
Southwest Airlines, in particular," said Southwest's Chairman and
Chief Executive Officer Gary Kelly.
"We are excited about the savings and additional capital, which we
intend to put to work in several forms—to reward our hard-working
Employees, to reinvest in our business, to reward our Shareholders,
and to keep our costs and fares low for our Customers."
Kelly continued, "I am also proud to report that we have donated
an incremental $5 million to
charitable causes as a result of tax reform. Throughout 2018, we
will work with our charitable partnerships to put this money to
work in the communities we serve and where our Employees work and
live."
Southwest also is increasing its fleet investment with its
longtime business partner, Boeing, to support future growth
opportunities and fleet modernization at favorable economics. The
Company exercised 40 Boeing 737 MAX 8 options for 15 firm orders in
2019 and 25 firm orders in 2020, and deferred 23 Boeing 737 MAX 7
firm orders from 2019 through 2021 to 12 firm orders in 2023 and 11
firm orders in 2024. The Company's 2018 available seat mile growth
plans remain unchanged.
Kelly continued, "Southwest Airlines has long been an example in
corporate America of a Company that puts People first by taking
care of our Employees, our Customers, our Shareholders, and our
Communities. Today's news is a wonderful example of that leadership
and commitment."
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Act of 1934, as amended. Specific
forward-looking statements include, without limitation, statements
related to (i) the expected benefits to the Company and its
industry of the recent tax reform legislation, including, in
particular, expected financial benefits; (ii) the Company's
financial, operational, and other plans associated with the
expected benefits; and (iii) the Company's fleet 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) the impact of governmental actions, economic conditions,
consumer behavior, fuel prices, actions of competitors (including
without limitation pricing, 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, and strategies; (ii) the Company's dependence on
third parties, in particular with respect to its fleet plans; and
(iii) 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 December 31, 2016.
ABOUT SOUTHWEST AIRLINES CO.
In its 47th year of service, Dallas-based Southwest Airlines Co.
(NYSE: LUV) continues to differentiate itself from other air
carriers with exemplary Customer Service delivered by more than
55,000 Employees to a Customer base topping 115 million passengers
annually, in recent years. Southwest became the nation's largest
domestic air carrier in 2003 and maintains that ranking based on
the U.S. Department of Transportation's most recent reporting of
domestic originating passengers boarded. During peak travel
seasons, Southwest operates more than 4,000 weekday departures
among a network of 100 destinations in the United States and 10 additional countries.
Southwest has announced its intention to sell tickets in 2018 for
service to Hawaii, subject to
requisite governmental approvals.
Southwest coined Transfarency® to describe its
purposed philosophy of treating Customers honestly and fairly, and
low fares actually staying low. Southwest is the only major U.S.
airline to offer bags fly free® to everyone (first
and second checked pieces of luggage, size and weight limits apply,
some carriers offer free checked bags on select routes or in
qualified circumstances), and there are no change fees, though fare
differences might apply.
As launch customer of the Boeing 737 MAX 8 in North America, the Company operates the
largest fleet in the world of Boeing aircraft, all of which are
equipped with satellite-based WiFi. Customers who connect to the
WiFi network may use their personal devices to view on-demand
movies and television shows, as well as nearly 20 channels of free,
live TV.
With a bold new look first unveiled in 2014, Southwest is
progressing through a multi-year refresh of its fleet to showcase
the carrier's Heart: a new logo, aircraft livery, interior
design featuring new seats, Employee-designed uniforms, and an
updated airport experience, all of which showcase a dedication of
Southwest Employees to connect Customers with what's important in
their lives.
From its first flights on June 18,
1971, Southwest Airlines launched an era of unprecedented
affordability in air travel described by the U.S. Department of
Transportation as "The Southwest Effect," a lowering of fares and
increase in passenger traffic wherever the carrier serves. With 44
consecutive years of profitability, Southwest is one of the most
honored airlines in the world, known for a triple bottom line
approach that contributes to the carrier's performance and
productivity, the importance of its People and the communities they
serve, and an overall commitment to efficiency and the planet. The
2016 Southwest Airlines One Report™ can be found at
SouthwestOneReport.com.
Book Southwest Airlines' low fares online
at Southwest.com or by phone at 800-I-FLY-SWA.
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SOURCE Southwest Airlines Co.