Southwest Airlines (Dallas) has issued its 2014 One Report on the performance of the airline during 2014 including the integration of AirTran Airways:
On the heels of the airline’s Annual Meeting of Shareholders and announcement of expanded international service, Southwest Airlines® released its sixth annual, award-winning integrated report, found at southwestonereport.com. Southwest Airlines Chairman, President, and CEO Gary Kelly (above and below) shared his thoughts on the 2014 One Report and the carrier’s successful year on his LinkedIn Influencer page.
Kelly said, “I am immensely proud to say that 2014 will go down as one of the most monumental years in Southwest’s history, chock-full of major milestones and historic events—a banner year that we started planning for in 2010 when we laid out our five-year strategic plan. In short, 2014 was epic!
“It marks the end of one era and the dawn of another as the restrictions of the Wright Amendment were lifted*, allowing us to offer additional nonstop service from our home in Dallas. Of equal significance, we spread our wings into international territory and expanded our presence in markets that were once inaccessible to us, like New York City and Washington, D.C.
“We continued our commitment to efficient operations by signing an agreement to purchase low-carbon renewable jet fuel and remained on track with our fleet modernization efforts. I suppose it is only fitting that 2014 culminated with the completion of the AirTran Airways integration, which has been arguably the biggest project in our Company’s history.
“In celebration of all these exciting changes, we introduced a bold, new look with a new livery and logo (below).
The new look is centered around a heart, which serves as our foundation and symbolizes our commitment to remain true to our Core Values and low-fare philosophy as we seek to spread our Hospitality and Reliability to the rest of the world, because without a Heart, it’s just a machine. We accomplished all of this and more in 2014 while returning significant value to our Shareholders, surpassing our financial target of at least 15 percent pre-tax return on invested capital, excluding special items (ROIC); maintaining a job-secure environment for our People; spreading our Hospitality to our communities; and achieving our 42nd consecutive year of profitability—a record that is unmatched in the U.S. airline industry. Further, our common stock (LUV) was the top performer of the S&P 500. Indeed, 2014 was proof positive of our ongoing commitment to the triple bottom line.”
The carrier’s triple bottom line approach takes into account Southwest’s Performance and productivity, the importance of its People and the communities it serves, and its commitment to efficiency and the Planet. The 2014 One Report also features the major headlines of the year, including the launch of international service, the repeal of the Wright Amendment, the integration of AirTran Airways, the airline’s innovative LUVSeat upcycling Program, and the opening of a brand new LEED® (Leadership in Energy and Environmental Design) Silver-certified Training and Operational Support facility in Dallas.
Key highlights that can be found in the 2014 One Report include:
Reported record net income of $1.1 billion
Recognized as the top stock performer of the S&P 500 with a 125 percent increase
Returned $1.1 billion to Shareholders through repurchases of $955 million of common stock (33 million shares) and payment of $139 million in dividends
Reduced long-term debt and capital lease obligations by $261 million, net of debt issuance Completed the integration of AirTran Airways, achieving net pre-tax synergies of approximately $500 million (excluding acquisition and integration expenses)
Transitioned AirTran Airways Employees into Southwest, creating one Family
Allocated the largest total dollar amount ever to the Company’s ProfitSharing Plan
Introduced a multi-year program, Heart of the Community, as part of Southwest’s community outreach in placemaking
In 2014, Southwest donated more than $20 million in corporate monetary, in-kind, and ticket donations to the communities the carrier serves
Reached 26 percent improvement in jet fuel efficiency on revenue ton miles per gallon basis compared with 2005
Decreased absolute greenhouse gas emissions for the second year in a row due to continued improvements in fuel efficiency
Continued renewable energy commitments for a total of more than 50 million kilowatt-hours of renewable energy in 2013 and 2014
Ranked first among the four largest U.S. domestic passenger airlines and fourth overall for in-service fuel efficiency, according to the International Council on Clean Transportation (ICCT) report
Based on the Company’s outstanding year in 2014, the airline has again been named to Corporate Responsibility Magazine’s 100 Best Corporate Citizens List for its commitment to Employees and the communities in which they work and live. Southwest Airlines was named in the top 25 and the only commercial airline to make Corporate Responsibility Magazine’s List, with especially high scores in the following categories:
Southwest’s strong performance in these categories underscores the airline’s commitment to a triple bottom line of Performance, People, and Planet.
To arrive at Corporate Responsibility Magazine’s 100 Best Corporate Citizens List, the program audits and ranks Russell 1000 companies across seven corporate and social responsibility initiatives: environmental activity, climate change, human rights, employee relations, corporate governance, philanthropy and financial performance. Corporate Responsibility Magazine collects data on each company, including sending out an extensive questionnaire and asking companies to verify Corporate Responsibility Magazine’s initial report. Learn more about the methodology here.
* Restrictions still apply with respect to destinations beyond the 50 United States or District of Columbia.
Video above: CEO Gary Kelly introduces the 2014 One Report.
Copyright Photo below: Jacques Guillem Collection/AirlinersGallery.com. Boeing 737-76N N7733B (msn 32678) taxies to the runway at Fort Lauderdale-Hollywood International Airport in the new 2014 livery.