Now, it is trying to replace the hundreds who took buyouts, a process that is between half and two-thirds complete, he said. Projections do not reflect the potential impact of special items because the Company cannot reliably predict or estimate those items or expenses or their impact to its financial statements in future periods. 10The Department of Transportation (DOT) ranks all U.S. carriers based on the lowest ratio of complaints per 100,000 passengers enplaned, as published in the DOT Air Travel Consumer Report (ATCR). (f) Calculated as passenger revenue divided by revenue passenger miles. As such, the Company's actual flown capacity may differ from currently published flight schedules or current guidance. Also referred to as "passenger unit revenues," this is a measure of passenger revenue production based on the total available seat miles flown during a particular period. Also referred to as "traffic," which is a measure of demand for a given period. The airline said it expected that practice to save it $1 billion this year. from 8 AM - 9 PM ET. (d) Seats flown is calculated using total number of seats available by aircraft type multiplied by the total trips flown by the same aircraft type during a particular period. 1See Note Regarding Use of Non-GAAP Financial Measures for additional information on special items. 2Includes approximately $15.7 billion in cash and short-term investments and a fully available revolving credit line of $1.0 billion. The Company's first quarter 2022 revenue performance from its loyalty program was strong and included incremental revenue from its new co-brand credit card agreement, as expected. (j) Included 8,164 Employees on Extended Emergency Time Off at March31, 2021. Financial measures identified as non-GAAP (or as excluding special items) have been adjusted to exclude special items. 8Net cash position is calculated as the sum of cash and cash equivalents and short-term investments, less the sum of short-term and long-term debt.

Estimated economic fuel price per gallon,including taxes and fuel hedging premiums. See Note Regarding Use of Non-GAAP Financial Measures. The Company's first quarter 2022 incentive pay was lower than its previous estimation of $150 million, which, combined with favorable airport settlements and better operational performance in March 2022, drove the Company's first quarter 2022 CASM-X to the lower end of its previous guidance range. Cision Distribution 888-776-0942 These GAAP financial statements may include (i) unrealized noncash adjustments and reclassifications, which can be significant, as a result of accounting requirements and elections made under accounting pronouncements relating to derivative instruments and hedging and (ii) other charges and benefits the Company believes are unusual and/or infrequent in nature and thus may make comparisons to its prior or future performance difficult. Launched an internal enhancement of our Employee volunteer program, allowing Employees the opportunity to be rewarded for their volunteer service to 501(c)(3) nonprofit organizations and schools. The Company's first 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 $127 million of additional salaries, wages, and benefits expense as a result of incentive pay offered to the Company's Operations Employees through early February 2022 in an effort to address available staffing challenges related to the Omicron variant. In February, Southwest finished retraining all of its pilots who took long-term leave during the pandemic, Mr. Jordan said. (a) A revenue passenger mile is one paying passenger flown one mile. In April 2022, the Company also exercised 16 -8 options for delivery in 2022; exercised 2 -7 options for delivery in 2023; accelerated and exercised 10 2023 -8 options into 2022; and shifted 10 2022 MAX firm orders into 2023, which are reflected as -7 firm orders in the Company's updated order book. Losses associated with the partial extinguishment of the Company's convertible notes and early prepayment of debt. See 'New 737 Delivery Schedule' for the Company's current aircraft order book. Also referred to as "capacity," which is a measure of the space available to carry passengers in a given period.

Like United Airlines, Delta Air Lines and other carriers, Southwest said it expected the price of jet fuel to be higher from April through June than it was in the first three months of the year, rising to just over $3 from $2.30 per gallon. The Company continues to expect to retire a total of 28 -700 aircraft in 2022. Anyone can read what you share. The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct. (c)While the Company's flight schedule remains published for sale through November 5, 2022, the Company recently adjusted its published flight schedules for June through August 2022 to provide additional buffer to the operation in light of continued availablestaffing challenges headed into the busy summer travel season. (b) Due to uncertainty regarding available seat mile plans in future years, the Company believes that providing the maximum percentage of fuel consumption covered by derivative contracts in 2023 and 2024 relative to 2019 fuel gallons consumed is a more relevant measure for future coverage. Excluding any further option exercises, the Company's 2022 capital spending would be ~$4.2 billion, also including ~$900 million in non-aircraft capital spending. Southwest Airlines on Thursday reported a net loss of $278 million in the first three months of the year but echoed the optimism of other carriers about the months ahead, saying it has already expanded its work force by 3,300 employees, or about 6 percent, this year.

As a result, the aforementioned measures, as presented, may not be directly comparable to similarly titled measures presented by other companies. The Company's emissions estimates do not quantify the potential climate change impact of non-CO2 emissions resulting from a flight. The Company's fuel hedge is providing excellent protection against rising energy prices and significantly offset the market price increase in jet fuel in first quarter 2022. Accordingly, the Company believes a reconciliation of non-GAAP financial measures to the equivalent GAAP financial measures for projected results is not meaningful or available without unreasonable effort. "As we focus on the basics, our priorities for 2022 are clear: getting properly staffed and returning to historic operational reliability; restoring our Customer Service advantage; growing our fleet with The Boeing Company's (Boeing) most-modern, fuel-efficient 737 aircraft; adding flights and restoring our network, especially on shorter-haul business routes; investing in enabling technologies for enhanced efficiencies; and producing consistent quarterly profits. I am grateful to our People for continuing to demonstrate their resilience and superb Teamwork after more than two years of managing through the pandemic. Adjustments to reconcile net income (loss) to cash provided by operating activities: Unrealized mark-to-market adjustment on available for sale securities, Unrealized/realized (gain) loss on fuel derivative instruments, Loss on partial extinguishment of convertible and unsecured notes. The airline reported taking in $4.7 billion in operating revenues in the first quarter, down nearly 9 percent from the same period in 2019. 9Adjusted debt is calculated as short-term and long-term debt including the net present value of aircraft rentals related to operating leases. Now when you get to Where are you most constrained?, definitely its pilots, he said. The Company's current fuel derivative contracts contain a combination of instruments based in West Texas Intermediate and Brent crude oil; however, the economic fuel price per gallon sensitivities4provided in the table below assume the relationship between Brent crude oil and refined products based on market prices as ofApril 21, 2022. As a subscriber, you have 10 gift articles to give each month. Among our primary goals is to return to pre-pandemic levels of productivity as we plan to restore the majority of our route network and better optimize our operations by the end of next year. As a result, the Company also provides financial information in this release that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company is currently 63 percent hedged for second quarter 2022 and 60 percent hedged for second half 2022. The industry struggled with staffing shortages and passenger cancellations caused by the Omicron variant of the coronavirus in the first two months of the year, but reported a substantial turnaround in March.

Forward-looking 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. Previous 737 Delivery Schedule as of December 31, 2021 (a): (a) The 'Previous 737 Delivery Schedule' is for reference and comparative purposes only.

Specific forward-looking statements include, without limitation, statements related to (i) the Company's network plans and expectations, including with respect to adding flights and restoring its network, in particular with respect to short-haul business routes and stage length; (ii) the Company's financial and operational outlook, expectations, goals, plans, and projected results of operations, including factors and assumptions underlying the Company's expectations and projections; (iii) the Company's expectations with respect to fuel costs and fuel efficiency, and the Company's related management of risks associated with changing jet fuel prices, including factors underlying the Company's expectations; (iv)the Company's plans and expectations with respect to capacity and capacity adjustments, including factors and assumptions underlying the Company's expectations and projections; (v) the Company's priorities and expectations with respect to investments in the Company's operations and People, including the Company's hiring plans and associated goals with respect to Customer Service and operational reliability, efficiency, productivity, optimization, and stability; (vi) the Company's plans and expectations regarding its fleet and fleet delivery schedule, including factors and assumptions underlying the Company's plans and expectations; (vii) the Company's expectations with respect to load factor; (viii) the Company's plans, estimates, and assumptions related to repayment of debt obligations, interest expense, effective tax rate, and capital spending, including factors and assumptions underlying the Company's expectations and projections; (ix) the Company's expectations regarding passenger demand, revenue trends, and bookings, including with respect to business travel and revenues; (x) the Company's plans and expectations with respect to its new fare product and the continued rollout of its portfolio of revenue initiatives; and (xi) the Company's emissions goals and related environmental sustainability plan.