Southwest Airlines has extended its schedule through April 10, 2023:

Southwest Airlines has opened its published flight schedule through April 10, 2023, giving Customers an early start to Spring Break 2023 vacation planning. With today’s schedule extension, the airline has brought back many popular routes for spring breakers that connect them to mountains, beaches, and destinations perfect for a springtime getaway.

Mile High Heart Grows

Largest-Ever March Schedule from Denver
Southwest® is bringing more Mile High Heart to its Colorado Customers. The airline today published its largest-ever March schedule from Denver beginning in March 2023, with up to 270 departures a day, an increase of 27 flights from February 2023’s published schedule.

International Network from Denver Grows
Beginning March 11, 2023, Southwest is adding seasonal service on Saturdays between Denver and San Jose, Costa Rica*, alongside existing Saturday service between Denver and Liberia, Cosa Rica. The carrier currently serves several international destinations from Denver including Belize, and four destinations in Mexico: Cancun, Cozumel, Puerto Vallarta, and Cabo San Lucas/Los Cabos**.

More Southwest Heart Lands in Las Vegas

Southwest Airlines is bringing more Heart to Las Vegas beginning in March 2023 with its largest-ever schedule from Las Vegas. The carrier’s published schedule now offers up to 243 departures a day in March 2023, an increase of 12 flights from February 2023’s published schedule.

Seasonal Flights Ready to Take Off

Southwest will offer a new nonstop seasonal route on Saturdays effective March 11, 2023, between San Diego and Eugene, Ore. The airline also announced several seasonal flights are now available for booking.

*Subject to government approvals
**Some routes are offered on a seasonal basis. 

Southwestn Airlines aircraft photo gallery:

Southwest Airlines hass announced its promotional Companion Pass^® offer is once again back and ready for takeoff. Rapid Rewards^®Members who qualify can travel with a Companion valid for unlimited usage from Jan. 4 through March 4, 2023.*

To qualify, Rapid Rewards Members must:

1. Act quickly and register for the promotion starting today through Sept. 8, 2022;
2. Purchase a Southwest revenue flight (one round trip or two one-ways), starting today through, Sept. 8, 2022;
3. Travel on one of those booked reservations from Sept. 6 through Nov. 17, 2022.

The Companion Pass is a unique benefit among U.S. airlines and allows qualifying Customers to designate one person to fly with them, free of airline charges (does not include taxes and fees from $5.60 one-way) every time the Customer purchases or redeems points for a flight.*

Join Rapid Rewards
The Rapid Rewards program is designed around a simple concept—to make earning reward flights faster and easier. With Rapid Rewards, Members qualify for unlimited reward seats, no blackout dates, and points don’t expire.

*OFFER TERMS AND CONDITIONS
Register for this promotion, then book one round trip or two one-way qualifying Southwest^® flights between 8:00 a.m. CT on Sept. 6, 2022, and 11:59 p.m. CT on Sept. 8, 2022, for travel from Sept. 6 to Nov. 17, 2022, (the “promotion period”), and fly during the promotion period to earn a promotional Companion Pass valid for use between Jan. 4 and March 4, 2023.

To register for this promotion, Customers will need to provide their Southwest Rapid Rewards account number at the time of registration. If a Customer does not have a Rapid Rewards account number, they may register for an account by going online to Southwest.com/rapidrewards to become a Member. Rapid Rewards accounts are free. The Member must register for this promotion, book a qualifying Southwest flight between 8:00 a.m. CT on Sept. 6, 2022, and 11:59 p.m. CT on Sept. 8, 2022, for travel during the promotion period, and fly during the promotion period.

Registration must be completed prior to booking and commencement of travel. The offer is valid on new qualifying revenue flights booked between 8:00 a.m. CT on Sept. 6, 2022, and 11:59 p.m. CTon Sept. 8, 2022, for travel during the promotion period and flown within the promotion period. The Member’s qualifying flight must be booked through Southwest Airlines between 8:00 a.m. CTon Sept. 6, 2022, and 11:59 p.m. CT on Sept. 8, 2022, for travel that must be completed during the promotion period. The Member’s Rapid Rewards account number must be entered at the time of booking the Member’s qualifying flight to earn a promotional Companion Pass valid for use between Jan. 4 and March 4, 2023.

A qualifying one-way flight for this promotion is a one-way revenue flight on Southwest Airlines from an origin city to a destination city, including any intermediate stops and/or connections on Southwest Airlines. A qualifying round trip flight for this promotion is a round trip revenue flight on Southwest Airlines from an origin city to a destination city and back to the originating airport or carrier-recognized co-terminal. Valid on new reservations booked within the promotion period only. Travel booked or flown prior to registration for this promotion is not eligible for this promotional Companion Pass offer. Companion Pass, charter flights, reward and group travel, and Southwest Vacations^® packages do not qualify as one-way or round trip revenue flights for this promotion. Changes made to any itinerary after the purchase of a one-way or round trip revenue flight may eliminate qualification for this promotion.

The promotional Companion Pass is valid from Jan. 4 to March 4, 2023, and allows Members to designate one person to fly with them, free of airline charges (does not include taxes and fees from $5.60 one-way) on flights purchased by the Member, from Jan. 4 to March 4, 2023, booked through Southwest, and completed between Jan. 4 and March 4, 2023. No Rapid Rewards points or tier or Companion Pass qualifying points will be awarded for flights taken by the Companion when flying on a promotional Companion Pass or Companion Pass reservation. Members may change their designated Companion up to three times while they have a promotional Companion Pass. If they earn Companion Pass in 2023 by earning 125,000 Companion Pass qualifying points or flying 100 qualifying flights, any changes to their designated Companion during the time the Member has a promotional Companion Pass will reduce the number of changes they can make to their designated Companion in the 2023 calendar year. For example, if a Member earns a promotional Companion Pass through this promotion, changes their designated Companion twice during the validity period for promotional Companion Pass, and later in 2023 earns Companion Pass, they would only be able to change their designated Companion one more time in 2023. The Companion Pass is non-transferable.

All Rapid Rewards rules and regulations apply and can be found at Southwest.com/rrterms. Southwest reserves the right to amend, suspend, or change the Rapid Rewards program and/or Rapid Rewards program rules at any time without notice. Rapid Rewards Members do not acquire property rights in accrued points. The number of points needed for a particular Southwest flight is set by Southwest and will vary depending on destination, time, day of travel, demand, fare type, point redemption rate, and other factors, and is subject to change at any time until the booking is confirmed. ©2022 Southwest Airlines Co.

Southwest Airlines aircraft photo gallery:

Southwest Airlines Company today reported its second quarter 2022 financial results:

• Strong quarterly net income of $760 million¹
• Record quarterly net income, excluding special items², of $825 million
• Record quarterly operating revenues of $6.7 billion
• Cash provided by operations of $1.9 billion
• Liquidity³ of $17.4 billion, well in excess of debt outstanding of $10.5 billion

Bob Jordan, Chief Executive Officer, stated, “We are very pleased to report all-time record quarterly revenues and net income, excluding special items, representing a significant milestone in our pandemic recovery. Travel demand surged in second quarter, and thus far, strong demand trends continue in third quarter 2022. As anticipated, we experienced inflationary pressures and headwinds from operating at suboptimal productivity levels in second quarter, which we expect will continue in second half 2022; however, our fuel hedge continues to provide significant protection against higher jet fuel prices. Barring significant unforeseen events and based on current trends, we expect to be solidly profitable for the remaining two quarters of this year, and for full year 2022.

“We are making meaningful progress against our 2022 priorities, and I am very proud of our People and their heroic efforts to fight against the pandemic. Since April, we have been delivering a more reliable product for our Customers with cancellations representing less than one percent of scheduled flights in May and June 2022, which is a completion factor of more than 99 percent. We have added flights in second half 2022—especially in short-haul business markets—to better support our operation and the restoration of our route network. We reached another milestone, returning to overall pre-pandemic staffing levels in May 2022. We plan to continue our hiring and training efforts in specific areas—in particular, Pilots—to support further network restoration and future growth with plans to add over 10,000 Employees, net of attrition, this year. However, we plan to begin moderating overall hiring in second half 2022 as our focus shifts to 2023 planning and executing on our goals to better optimize staffing to flight schedules, reduce cost inefficiencies, and return to historic efficiency levels.

“We are experiencing delays in our aircraft deliveries from The Boeing Company (Boeing), and we now estimate 2022 deliveries to be 66 versus the previously expected 114, ending the year with 765 aircraft. Despite those delays, we are confident about our ability to fly our flight schedules as planned, which are currently published through March 8, 2023. We continue to invest in technologies, airports, and facilities to further modernize our operation and allow us to scale for future growth.

“We are also investing in the Southwest Customer Experience, and I am thrilled about today’s announcement introducing yet another exciting Customer benefit that sets Southwest even further apart from the competition: Flight credits don’t expire⁴. We are famous for offering industry-leading flexibility for Customers, and it is a key differentiator of our brand. Based on research and feedback, we believe flexibility has become even more important to Customers over the past few years. This further extension of flexibility for our Customers reinforces Southwest as industry-leading and builds on our low-fare brand with no fees to change or cancel plans⁵; two bags fly free®⁶; Rapid Rewards® points that don’t expire; and transferable flight credits⁷. With flight credits that don’t expire and the addition of our new Wanna Get Away Plus^TM fare product—along with recently announced investments to enhance WiFi, install latest-technology onboard power ports, offer larger overhead bins, and enable new self-service capabilities—we are making travel even easier. We believe we have the strongest route network and value proposition for Customers in the domestic U.S., and also believe this policy change will both win new Customers and increase Customer loyalty.”

Guidance and Outlook:

The following tables introduce or update selected financial guidance for third quarter 2022 and full year 2022, as applicable:

Revenue Results and Outlook:

• Second quarter 2022 operating revenues were an all-time quarterly record $6.7 billion, increasing 13.9 percent compared with second quarter 2019—in line with the Company’s previous guidance
• Second quarter 2022 operating revenues per available seat mile (RASM, or unit revenues) increased 22.0 percent driven primarily by a passenger yield increase of 18.4 percent, coupled with a load factor increase of 0.7 points, all compared with second quarter 2019
• Second quarter 2022 managed business revenues were down 24 percent compared with second quarter 2019—in line with the Company’s previous guidance
• Successfully launched new Wanna Get Away Plus™ fare product in May 2022

The Company’s revenue performance in second quarter 2022 was a quarterly record primarily due to a surge in leisure demand, especially in June, which resulted in strong passenger bookings, yields, and load factors. In addition, the Company’s second quarter 2022 loyalty program revenue represented a quarterly record. June 2022 managed business revenues were down 19 percent, a sequential improvement compared with April and May 2022 managed business revenues, which were down 31 percent and 23 percent, respectively, all compared with their respective 2019 levels. While second quarter 2022 managed business revenues remained below 2019 levels, the Company was encouraged by the sequential improvement during the quarter, as well as managed business average fares that exceeded 2019 levels. June 2022 is estimated to represent a monthly peak for 2022 operating revenues based on first half 2022 results and current expectations for second half 2022.

Currently, the Company continues to experience strong passenger bookings, yields, and load factors. Leisure bookings remain strong and in line with seasonal expectations in third quarter 2022, including post-Labor Day. Based on bookings thus far, the Company’s third quarter 2022 managed business revenues are currently estimated to be down in the range of 17 percent to 21 percent, compared with third quarter 2019. Although early in the booking curve, the Company is encouraged by current business bookings post-Labor Day and the expected sequential improvement from second quarter to third quarter 2022, of managed business revenues compared with the same periods in 2019. The Company increased short-haul trips in business markets in its third quarter 2022 published flight schedule, relative to first half 2022, in an effort to support both the reliability of its operational performance and expected business travel demand. Given the Company’s estimate that managed business revenues will remain below 2019 levels in third quarter 2022, the increase in short-haul trips in business markets is estimated to be a two point sequential operating revenue growth headwind from second quarter to third quarter 2022, compared with their respective 2019 levels.

In accordance with applicable accounting guidance and the Company’s revenue recognition policy, the amount of tickets that will expire unused, referred to as breakage, are estimated and recognized in Passenger revenue once the scheduled flight date has passed, in proportion to Customer behavior. Breakage estimates are based on historical experience over many years, and the Company has consistently applied this accounting method to estimate revenue from unused tickets at the date of scheduled travel. As a result of the COVID-19 pandemic, the Company had a significant amount of Customer flight credits that were set to expire on September 7, 2022. The Company’s policy change to eliminate expiration dates on qualifying flight credits, in particular those that were set to expire on September 7, 2022, results in a shift in the timing of revenue recognition and an estimated negative impact to third quarter breakage revenue in the range of $250 million to $300 million, or a five point sequential operating revenue growth headwind from second quarter to third quarter 2022, compared with their respective 2019 levels. The Company does not anticipate a material impact from this policy change beyond third quarter 2022, and estimates that breakage as a percentage of revenue will normalize to pre-pandemic levels. The Company expects that this policy change, combined with its other attractive brand attributes, will contribute to an increase in Customer loyalty and new Customers.

Fuel Costs and Outlook:

• Second quarter 2022 fuel costs were $3.36 per gallon—in line with the Company’s previous guidance—and included $0.05 per gallon in premium expense and $0.68 per gallon in favorable cash settlements from fuel derivative contracts
• Second quarter 2022 fuel efficiency improved 2.1 percent compared with second quarter 2019 due to more MAX aircraft, the Company’s most fuel-efficient aircraft, as a percentage of the Company’s fleet
• As of July 21, 2022, the fair market value of the Company’s fuel derivative contracts settling in third quarter 2022 through the end of 2024 was an asset of $1.0 billion

The Company’s multi-year fuel hedging program continues to provide insurance against spikes in energy prices and significantly offset the market price increase in jet fuel in second quarter 2022. The Company’s current fuel derivative contracts contain a combination of instruments based in West Texas Intermediate, Brent crude oil, and refined products, such as heating oil. The economic fuel price per gallon sensitivities⁸ provided in the table below assume the relationship between Brent crude oil and refined products based on market prices as of July 21, 2022.

In addition, the Company is providing its maximum percentage of estimated fuel consumption¹⁰ covered by fuel derivative contracts in the following table:

Non-Fuel Costs and Outlook:

• Second quarter 2022 operating expenses of $5.6 billion increased 12.7 percent compared with second quarter 2019
• Second quarter 2022 operating expenses, excluding fuel and oil expense, special items, and profitsharing, increased 5.6 percent compared with second quarter 2019
• Second quarter 2022 operating expenses per available seat mile, excluding fuel and oil expense, special items, and profitsharing (CASM-X), increased 13.1 percent compared with second quarter 2019—favorable to the Company’s previous guidance
• The Company accrued $81 million of profitsharing expense in second quarter 2022 bringing first half 2022 profitsharing expense to $118 million

The Company’s second quarter 2022 CASM-X increase was primarily due to continued unit cost headwinds from operating at suboptimal productivity levels, inflation in labor rates and airport costs, and accruals for expected future contractual wage rate increases. However, the Company’s second quarter 2022 CASM-X increase was lower than its previous guidance range primarily due to lower benefits costs, as well as the shifting of certain maintenance costs from second quarter to second half 2022.

The Company continues to experience cost inflation in third quarter 2022, in particular with higher rates for labor, benefits, and airports. The Company also expects cost headwinds from operating at suboptimal productivity levels as headcount is expected to increase in third quarter 2022 while capacity levels are expected to remain relatively in line with third quarter 2019. The Company has increased short-haul trips in second half 2022 in an effort to restore its route network and support the reliability of its operational performance, which results in a decrease to average stage length, and adds further unit cost headwinds. As a result of its successful hiring efforts and much improved operational reliability, the Company plans to begin moderating hiring where opportunities exist and intensify its focus on returning to historical efficiency levels.

Fleet and Capital Spending:

For first half 2022, the Company was scheduled to receive 28 -8 aircraft, of which only 12 were received, all during second quarter 2022. The Company ended second quarter 2022 with 730 aircraft, which reflects four owned -700 retirements. In addition, the Company had four -700 aircraft in storage as of June 30, 2022, all of which were subsequently retired from the Company’s fleet in July 2022. While the Company is contractually scheduled to receive 114 MAX deliveries, including options, this year, a portion of its deliveries are expected to shift into 2023 due to Boeing’s supply chain challenges and the current status of the -7 certification. Based on recent discussions with Boeing regarding the pace of expected deliveries for the remainder of this year, the Company is currently estimating it will receive a total of 66 -8 aircraft deliveries and no -7 deliveries in 2022.

Since the Company’s previous disclosure on April 28, 2022, the Company exercised seven -8 options for delivery in 2022; exercised two -7 options for delivery in 2023; accelerated and exercised seven 2023 -8 options for delivery in 2022; and shifted seven 2022 MAX firm orders into 2023, which are reflected as -7 firm orders in the Company’s updated order book. Additionally in July 2022, the Company converted 48 2023 -7 firm orders to -8 firm orders in 2023.

Based on these modifications and recent discussions with Boeing, the Company is currently assuming 23 and 31 -8 aircraft deliveries in third quarter and fourth quarter 2022, respectively. The Company plans to retire 12 and 7 -700 aircraft in third quarter and fourth quarter 2022, respectively. As a result, the Company expects to end third quarter with 741 aircraft and end 2022 with 765 aircraft, compared with its previous guidance of 814 aircraft. The Company now expects to retire 29 -700 aircraft in 2022, compared with its previous guidance of 28 -700 retirements this year.

The Company’s second quarter 2022 capital expenditures were $987 million driven primarily by aircraft-related capital expenditures, as well as technology, facilities, and operational investments. The Company now estimates its 2022 capital spending to be approximately $4.0 billion, which assumes the exercise of its five remaining 2022 options, and a total of 66 -8 aircraft deliveries in 2022, compared with its previous 2022 capital spending guidance of approximately $5.0 billion which assumed the delivery of 114 MAX aircraft in 2022. The Company’s 2022 capital spending guidance continues to include approximately $900 million in non-aircraft capital spending.

The following tables provide further information regarding the Company’s contractual order book and compare its contractual order book as of July 28, 2022, with its previous order book as of April 28, 2022. Given current supply chain and aircraft delivery delays, the Company will continue working with Boeing on its order book with focus on 2022 and 2023.

Liquidity and Capital Deployment:

• The Company ended second quarter 2022 with $16.4 billion in cash and short-term investments and a fully available revolving credit line of $1.0 billion
• The Company had a net cash position¹¹ of $5.9 billion, and adjusted debt¹² to invested capital (leverage) of 53 percent as of June 30, 2022
• The Company paid $231 million during second quarter 2022 to retire debt and finance lease obligations, including the extinguishment of $138 million in principal of the Company’s convertible notes for a cash payment of $178 million, the extinguishment of $30 million in principal of various unsecured notes for a cash payment of $31 million, as well as $22 million in scheduled debt payments
• The Company’s 2022 total debt repayments is expected to be $820 million, compared with its previous guidance of $650 million, due to the unscheduled extinguishments noted above
• The Company recently extended the maturity of its revolving credit facility agreement two years to August 3, 2025

Southwest Airlines aircraft photo gallery:

Southwest Airlines today extended its flight schedule through January 4, 2023.

In the newly released extension of the flight schedule, Southwest will offer new nonstop service between:

San Jose, Calif., and Palm Springs, daily except on Saturdays, beginning Nov. 6, 2022;
Nashville and Long Beach, Calif., once daily, beginning Nov. 6, 2022;
Nashville and Steamboat Springs (Hayden), Colo., only on Saturdays, beginning Dec. 17, 2022; and
Colorado Springs and San Diego, on select peak travel days from late November through early January.

Southwest aircraft photo gallery:

Southwest Airlines has announced an investment into SAFFiRE Renewables, LLC (SAFFiRE), a company formed by D3MAX, LLC (D3MAX), as part of a Department of Energy (DOE)-backed project to develop and produce scalable, sustainable aviation fuel (SAF). Funded with a DOE grant matched by Southwest’s investment, SAFFiRE is expected to utilize technology developed by the DOE’s National Renewable Energy Laboratory (NREL) to convert corn stover, a widely available waste feedstock in the U.S., into renewable ethanol that then would be upgraded into SAF.

In 2021, the DOE awarded D3MAX the only pilot-scale grant for SAF production, with a goal to scale technology that could commercialize SAF. According to NREL, this could produce significant quantities of cost-competitive SAF that could provide an 84 percent reduction in carbon intensity compared to conventional jet fuel on a lifecycle basis.  Southwest’s match of the DOE’s grant supports phase one of the project, which is expected to include technology validation, preliminary design, and a business plan for a pilot plant.

“SAF is critical for decarbonizing the aviation sector,” said Bob Jordan, Chief Executive Officer at Southwest®. “This is a unique opportunity to invest in what we believe could be game-changing technology that could facilitate the replacement of up to approximately five percent of our jet fuel with SAF by 2030, with the potential to significantly continue to scale beyond the decade. This first-of-its-kind investment is another step we are taking to address our environmental impact, and it also supports our efforts to partner with organizations and government entities to help our industry reach the goal of carbon neutrality by 2050.”

In 2021, Southwest set a near-term goal to maintain carbon neutrality to 2019 levels while continuing to grow its operations, part of which includes replacing 10 percent of its total jet fuel consumption with SAF by 2030.

In addition to complementing Southwest’s SAF goals and broader environmental sustainability efforts, this project supports the federal government’s climate strategy, including an ambition for three billion gallons of SAF by 2030 through the SAF Grand Challenge.

“The Department of Energy is committed to turning our ambitious aviation decarbonization goals into realities through strong partnerships across the airline industry,” said U.S. Deputy Secretary of Energy David Turk. “Moving cutting-edge technology advances in sustainable aviation to production scale will save money, reduce carbon emissions, and reshape the future of the airline travel for the benefit of American consumers.”

The pilot project is intended to validate the commercialization of this corn-stover-to-ethanol technology, which could lead to a follow-up phase. If phase one is successful, DOE and Southwest would have the opportunity to fund a second phase investment for the design, fabrication, installation, and operation of a pilot plant producing renewable ethanol utilizing technology developed by D3MAX and NREL. In phase two, the renewable ethanol is planned to be upgraded into SAF by LanzaJet, Inc., at its biorefinery currently under construction in Soperton, Georgia.

“We are extremely excited to be working with Southwest Airlines—they will be a great investor,” said Mark Yancey, CEO of SAFFiRE. “SAFFiRE technology is expected to produce lower carbon SAF compared to conventional jet fuel on a lifecycle basis, which could become carbon negative with process improvements and carbon capture. If we are successful in developing and commercializing this technology, we project the technology can produce 7.5 billion gallons per year of SAF by 2040.”

“NREL is thrilled to contribute its research and development expertise in biofuels to this exciting collaboration with Southwest Airlines, D3MAX, and DOE to potentially bring SAF to the market quickly and economically,” said Adam Bratis, Associate Laboratory Director of BioEnergy Sciences & Technology at NREL.

Southwest is one of the most honored airlines in the world and remains focused on promoting a healthier planet, but the Company can’t accomplish that alone. As described in its 10-Year Environmental Sustainability Plan, Southwest’s plans to reduce, replace, offset, and partner are important next steps in the journey to build a holistic approach to improve its environmental sustainability. Learn more about these efforts by visiting swa.is/planetplan.

Southwest’s Focus on Environmental Sustainability

• In October 2021 established a plan of action to reduce Southwest’s carbon emissions intensity by at least 20 percent by 2030¹ and maintain carbon neutral growth every year through the end of the decade.
• Announced multiple offtake agreements and memoranda of understanding with sustainable aviation fuel producers.
• In October 2021, Southwest announced the first U.S.-based carbon offset option where individual customers can contribute towards offsetting Southwest’s carbon emissions.²
• Joined the Vision 2045 campaign, a collaboration among multiple organizations and companies to share films and resources that aim to inspire businesses and people to take action toward a more sustainable future. Southwest content showcased how the Company is making sustainability a priority through a series of near-term actions and long-term goals.
• Launched opportunities for Southwest® Business Customers to support and advance sustainability initiatives within their corporate travel portfolios.
• Committed $10 million to Yale University’s Center for Natural Carbon Capture to research technological advancements and find new solutions to reduce net greenhouse gas emissions.
• Joined the Aviation Climate Taskforce, a new nonprofit founded with a goal to tackle the challenges of reducing carbon emissions in aviation.

1. As compared to 2019, includes scope 1 and 2 emissions and the use of sustainable aviation fuel, and excludes the use of carbon offsets
2. All offsets will be retired in the name of Southwest Airlines Co. Terms and conditions apply.

Southwest Airlines aircraft photo gallery: