<SEC-DOCUMENT>0001193125-24-237212.txt : 20241015
<SEC-HEADER>0001193125-24-237212.hdr.sgml : 20241015
<ACCEPTANCE-DATETIME>20241015074555
ACCESSION NUMBER:		0001193125-24-237212
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20241015
DATE AS OF CHANGE:		20241015

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOUTHWEST AIRLINES CO
		CENTRAL INDEX KEY:			0000092380
		STANDARD INDUSTRIAL CLASSIFICATION:	AIR TRANSPORTATION, SCHEDULED [4512]
		ORGANIZATION NAME:           	01 Energy & Transportation
		IRS NUMBER:				741563240
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07259
		FILM NUMBER:		241369300

	BUSINESS ADDRESS:	
		STREET 1:		2702 LOVE FIELD DR
		STREET 2:		P O BOX 36611
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75235
		BUSINESS PHONE:		2147924000

	MAIL ADDRESS:	
		STREET 1:		PO BOX 36611
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75235-1611

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AIR SOUTHWEST CO
		DATE OF NAME CHANGE:	19760108
</SEC-HEADER>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SCHEDULE 14A
INFORMATION </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>(Amendment No . &#8195;&#8195;) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Filed by the
Registrant&#8194;&#9746; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Filed by a Party other than the Registrant&#8194;&#9744; </P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Preliminary Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B></B>&#9744;<B></B><B></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Confidential, for Use of the Commission Only (as permitted by Rule
<FONT STYLE="white-space:nowrap">14a-6(e)(2))</FONT> </B></P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Definitive Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Definitive Additional Materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Soliciting Material under <FONT STYLE="white-space:nowrap">&#167;240.14a-12</FONT> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SOUTHWEST AIRLINES CO. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Registrant as Specified in its Charter) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name Of Person(s) Filing Proxy Statement, if Other Than the Registrant) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Payment of Filing Fee (Check all boxes that apply): </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">No fee required </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Fee paid previously with preliminary materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules
<FONT STYLE="white-space:nowrap">14a-6(i)(1)</FONT> and <FONT STYLE="white-space:nowrap">0-11</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On October&nbsp;14, 2024, Southwest Airlines Co. issued the below press release: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SOUTHWEST AIRLINES COMMENTS ON ELLIOTT MANAGEMENT&#146;S SPECIAL MEETING REQUEST </B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Reiterates Efforts to Reach Constructive Resolution with Elliott </I> </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Outlines Actionable Steps Taken to Position Southwest for the Future</I> </P></TD></TR></TABLE>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Shareholders Not Required to Take Immediate Action</I> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">DALLAS, October&nbsp;14, 2024 &#151; <B>Southwest Airlines Co.</B> (NYSE: LUV) (&#147;Southwest&#148; or the &#147;Company&#148;) today
confirmed that Elliott Investment Management L.P. (&#147;Elliott&#148;) requested a Special Meeting of Shareholders to consider Elliott&#146;s proposals, including to remove without cause eight members of Southwest&#146;s Board of Directors (the
&#147;Board&#148;) and elect eight Director candidates chosen by Elliott, which appears designed to result in full control of the Board by Elliott&#146;s nominees. Southwest&#146;s Board issued the following statement in response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Elliott&#146;s Special Meeting request is unnecessary and inappropriate considering the extreme nature of Elliott&#146;s
demands. The timing of Elliott&#146;s request to apparently pursue Board control appears designed to maximize disruption of Southwest&#146;s execution of its important business transformation underway as we approach one of the busiest travel periods
of the year. Elliott&#146;s actions highlight its lack of understanding of Southwest&#146;s business and its insatiable need to put its own interests ahead of those of all Shareholders. Before and since Elliott launched its campaign in June, the
Board has had extensive dialogue with a significant number of Southwest Shareholders. The Board&#146;s actions have been rooted in feedback from these conversations, including the comprehensive Board and governance changes recently announced. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Southwest also heard Shareholders&#146; resounding preference that the Company engage with Elliott and seek to avoid a
protracted dispute. The Board has made <U>every effort</U> to reach a constructive resolution, including providing a reasonable settlement framework under which the Board would interview Elliott&#146;s candidates and appoint up to three to a
reconstituted <FONT STYLE="white-space:nowrap">13-member</FONT> Board that would be reduced to 12 following Executive Chairman Gary Kelly&#146;s retirement at the 2025 Annual Meeting of Shareholders. For Elliott&#146;s part, its latest framework for
settlement reflects its continuing interest in seeking effective control of both the Board and management, including by installing Robert Milton, former CEO of Air Canada and a member of Elliott&#146;s Board slate, as Executive Chair of Southwest.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Unfortunately, Elliott remains entrenched in demanding control of the Board, while continuing to block its Director
candidates from being interviewed by the Board&#146;s Nominating and Corporate Governance Committee, making it impossible to find a constructive resolution. For nearly four months, Elliott has failed to offer any substantive feedback on
Southwest&#146;s strategic plan. The Company was encouraged that Elliott might be turning the page ahead of Investor Day, when it requested a preview of Southwest&#146;s Investor Day materials as a condition to engaging in settlement discussions.
After providing Elliott a detailed, <FONT STYLE="white-space:nowrap">in-person</FONT> preview of the Company&#146;s plan more than a week before Investor Day, Elliott failed to provide input and continued its public attacks ahead of and following
Investor Day. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Elliott&#146;s failure to provide actionable feedback, coupled with the disruptive nature of its demands,
should give Shareholders pause about Elliott&#146;s true intentions. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Board will carefully review the Special Meeting
request in accordance with its fiduciary duties, Texas law and the Company&#146;s bylaws, including Elliott&#146;s stated request to hold the meeting on December&nbsp;10, 2024. The Board intends to discuss the process for setting a Special Meeting
with Elliott in a constructive manner. The Board is committed to acting in the best interests of Southwest and its Shareholders and will provide further updates in due course. No immediate action is required of Shareholders. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Southwest will continue to move expeditiously to transform its business,
improve financial performance and make meaningful Board and corporate governance changes. The Board reiterated the following steps that Southwest has taken in recent months: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Comprehensive Board Refreshment and Corporate Governance Changes </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Southwest recently <U>announced</U> the next phase of its Board transformation, which includes: six Director retirements
effective immediately following the Company&#146;s regularly scheduled fourth quarter Board meeting in November and Executive Chairman Kelly&#146;s retirement effective immediately following the 2025 Annual Meeting; the anticipated appointment of
three new Directors; the naming of new Committee Chairs and a new Lead Director; and significant corporate governance changes, including the elimination of the Executive Committee structure and creation of a new Finance Committee. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Board has advanced its commitment to refreshment and a strong skill composition with the recent appointments of <U>Robert
Fornaro</U>, former CEO of Spirit Airlines and AirTran Holdings Inc., <U>Rakesh Gangwal</U>, <FONT STYLE="white-space:nowrap">co-founder</FONT> of India&#146;s largest airline, InterGlobe Aviation (IndiGo) and previous executive at US Airways Group
and United Airlines, and <U>Lisa Atherton</U>, President and CEO of Bell. Inclusive of all the Board changes described above, 75% of the airline&#146;s Directors will have three years or less tenure on the Board and the average Board tenure will be
approximately 2.5 years, reduced from 6.8 today. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>&#147;Southwest. Even Better.&#148; Transformational Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Southwest is implementing a <U>comprehensive three-year plan</U> designed to drive revenue growth and return the airline to
industry leading profitability. The Company&#146;s tactical and strategic initiatives are guided by data-driven research of travelers&#146; changing preferences to transform the airline and are expected to deliver: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="2%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Approximately $4&nbsp;billion<SUP STYLE="font-size:75%; vertical-align:top">1</SUP> in cumulative incremental
run rate EBIT contribution in 2027 </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="2%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">ROIC of 15&nbsp;percent or greater, well above WACC in 2027 </P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Board strongly believes Bob Jordan is the right leader to successfully execute Southwest&#146;s plan and Leadership change
amid such a significant transformation would be detrimental to all Shareholders. The Board has high expectations for Jordan and the Leadership team and will continue to hold them accountable for delivering results. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">BofA Securities, Inc. and Morgan Stanley&nbsp;&amp; Co. LLC are acting as financial advisors to Southwest and Vinson&nbsp;&amp; Elkins L.L.P.
and Kirkland&nbsp;&amp; Ellis LLP are acting as legal advisors. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><U>Cautionary Statement Regarding Forward-Looking Statements
</U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">This news release contains forward-looking statements within the meaning of Section&nbsp;27A of the Securities Act of 1933, as
amended, and Section&nbsp;21E of the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;). Specific forward-looking statements include, without limitation, statements related to (i)&nbsp;the timing and process and other matters with
respect to the Special Meeting; (ii)&nbsp;the Company&#146;s initiatives, strategic priorities and focus areas, plans, goals, and opportunities, including with respect to (a)&nbsp;transforming its business, (b)&nbsp;improving financial performance,
(c)&nbsp;making meaningful Board and corporate governance changes, (d)&nbsp;driving revenue growth, and (e)&nbsp;returning the airline to industry-leading profitability; (iii)&nbsp;the Company&#146;s financial and operational outlook, expectations,
goals, plans, strategies, and projected results of operations, including with respect to its initiatives, and including factors and assumptions underlying the Company&#146;s expectations and projections; and (iv)&nbsp;the Company&#146;s expectations
with respect to its Leadership team. These forward-looking statements are based on the Company&#146;s current estimates, </P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:11%">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><SUP STYLE="font-size:75%; vertical-align:top">1</SUP>&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Estimated cumulative run rate EBIT contribution to the Company&#146;s 2027 base business financial
performance from its portfolio of initiatives included in its comprehensive three-year financial plan. </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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intentions, beliefs, expectations, goals, strategies, and projections for the future and are not guarantees of future performance. 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. Factors include, among others, (i)&nbsp;the impact of fears or actual outbreaks of
diseases, extreme or severe weather and natural disasters, actions of competitors (including, without limitation, pricing, scheduling, capacity, and network decisions, and consolidation and alliance activities), consumer perception, economic
conditions, fuel prices, banking conditions, fears or actual acts of terrorism or war, sociodemographic trends, and other factors beyond the Company&#146;s control, on consumer behavior and the Company&#146;s results of operations and business
decisions, plans, strategies, and results; (ii)&nbsp;the Company&#146;s ability to timely and effectively implement, transition, operate, and maintain the necessary information technology systems and infrastructure to support its operations and
initiatives, including with respect to revenue management and assigned and premium seating; (iii)&nbsp;the cost and effects of the actions of activist shareholders; (iv)&nbsp;the Company&#146;s ability to obtain and maintain adequate infrastructure
and equipment to support its operations and initiatives; (v)&nbsp;the Company&#146;s dependence on The Boeing Company (&#147;Boeing&#148;) and Boeing suppliers with respect to the Company&#146;s aircraft deliveries, Boeing MAX 7 aircraft
certifications, fleet and capacity plans, operations, maintenance, strategies, and goals; (vi)&nbsp;the Company&#146;s dependence on the Federal Aviation Administration with respect to safety approvals for the new cabin layout and the certification
of the Boeing MAX 7 aircraft; (vii)&nbsp;the Company&#146;s dependence on other third parties, in particular with respect to its technology plans, its plans and expectations related to revenue management, operational reliability, fuel supply,
maintenance, and Global Distribution Systems, and the impact on the Company&#146;s operations and results of operations of any third party delays or nonperformance; (viii)&nbsp;the Company&#146;s ability to timely and effectively prioritize its
initiatives and focus areas and related expenditures; (ix)&nbsp;the impact of labor matters on the Company&#146;s business decisions, plans, strategies, and results; (x)&nbsp;the impact of governmental regulations and other governmental actions on
the Company&#146;s business plans, results, and operations; (xi)&nbsp;the Company&#146;s dependence on its workforce, including its ability to employ and retain sufficient numbers of qualified Employees with appropriate skills and expertise to
effectively and efficiently maintain its operations and execute the Company&#146;s plans, strategies, and initiatives; (xii)&nbsp;the emergence of additional costs or effects associated with the cancelled flights in December 2022, including
litigation, government investigation and actions, and internal actions; and (xiii)&nbsp;other factors, as described in the Company&#146;s filings with the Securities and Exchange Commission (&#147;SEC&#148;), including the detailed factors discussed
under the heading &#147;Risk Factors&#148; in the Company&#146;s Annual Report on Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended December&nbsp;31, 2023, and in the Company&#146;s Quarterly Report on Form <FONT
STYLE="white-space:nowrap">10-Q</FONT> for the fiscal quarter ended June&nbsp;30, 2024. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>ABOUT SOUTHWEST AIRLINES CO. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Southwest Airlines Co.</U><U></U> operates one of the world&#146;s most admired and awarded airlines, offering its <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">one-of-a-kind</FONT></FONT></FONT> value and Hospitality at 117 airports across 11 countries. Southwest took flight in 1971 to democratize the sky through
friendly, reliable, and <FONT STYLE="white-space:nowrap">low-cost</FONT> air travel and now carries more air travelers flying nonstop within&nbsp;the United States&nbsp;than any
other&nbsp;airline<I><SUP STYLE="font-size:75%; vertical-align:top">2</SUP></I>. Based in&nbsp;Dallas&nbsp;and famous for an Employee-first corporate Culture, Southwest maintains an unprecedented record of no involuntary furloughs or layoffs in its
history. By empowering its more than&nbsp;74,000<I><SUP STYLE="font-size:75%; vertical-align:top">3</SUP></I><I></I>&nbsp;People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than
137&nbsp;million Customers carried in 2023. That formula for success brought industry-leading prosperity and 47 consecutive&nbsp;years<I><SUP STYLE="font-size:75%; vertical-align:top">4</SUP></I>&nbsp;of profitability for Southwest Shareholders
(NYSE:&nbsp;<U>LUV</U>). Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting
<U>Southwest.com/citizenship</U>. As the airline with Heart, Southwest has set a goal to work toward achieving net zero carbon emissions by&nbsp;2050<I><SUP STYLE="font-size:75%; vertical-align:top">5</SUP></I>. Southwest has also set near-term
targets and a three-pillar strategy to achieve its environmental goals. Learn more by visiting <U>Southwest.com/planet</U>. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><SUP STYLE="font-size:75%; vertical-align:top">2</SUP><I></I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I>Based on U.S. Dept. of Transportation quarterly Airline Origin</I><I></I><I>&nbsp;&amp; Destination
Survey since Q1 2021</I> <I><SUP STYLE="font-size:75%; vertical-align:top"> </SUP></I></P></TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I><SUP STYLE="font-size:75%; vertical-align:top">3</SUP></I><I></I><I></I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I>Fulltime-equivalent active Employees</I> <I><SUP STYLE="font-size:75%; vertical-align:top">
</SUP></I></P></TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I><SUP STYLE="font-size:75%; vertical-align:top">4</SUP></I><I></I><I></I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I>1973-2019 annual profitability</I> <I><SUP STYLE="font-size:75%; vertical-align:top">
</SUP></I></P></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I><SUP STYLE="font-size:75%; vertical-align:top">5</SUP></I><I></I><I></I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I>Our net zero by 2050 goal includes Scope 1, Scope 2, and Scope 3 Category 3 emissions only and excludes
any emissions associated with <FONT STYLE="white-space:nowrap">non-fuel</FONT> products and services, such as inflight service items.</I> </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><U>Important Additional Information</U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Company intends to file a proxy statement and a<B> <U>WHITE</U></B> proxy card with the SEC in connection with the solicitation of proxies
for the Company&#146;s special meeting of Shareholders (the &#147;Special Meeting&#148;). <B>SHAREHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ SUCH PROXY STATEMENT, ACCOMPANYING </B><B><U>WHITE</U></B><B> PROXY CARD AND ALL OTHER DOCUMENTS
FILED WITH, OR FURNISHED TO, THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE SPECIAL MEETING</B>. Shareholders will be able to obtain the Company&#146;s proxy statement, any
amendments or supplements to the proxy statement and other documents filed by the Company with the SEC at no charge at the SEC&#146;s website at <U>www.sec.gov</U>. Copies will also be available at no charge at the Company&#146;s website at <U><FONT
STYLE="white-space:nowrap">https://www.southwestairlinesinvestorrelations.com/financials/sec-filings</FONT></U>. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><U>Participant
Information</U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Company, each of its Directors (namely, Gary C. Kelly, Robert E. Jordan, William H. Cunningham, Ph.D., Lisa M.
Atherton, David W. Biegler, J. Veronica Biggins, Roy Blunt, Douglas H. Brooks, Eduardo F. Conrado, Robert L. Fornaro, Rakesh Gangwal, Thomas W. Gilligan, Ph.D., David P. Hess, Elaine Mendoza, Christopher P. Reynolds, and Jill A. Soltau) and one of
its executive officers (namely, Tammy Romo, Chief Financial Officer) are deemed to be &#147;participants&#148; (as defined in Section&nbsp;14(a) of the Exchange Act) in the solicitation of proxies from the Company&#146;s Shareholders in connection
with the matters to be considered at the Special Meeting. Information about the compensation of our named executive officers and <FONT STYLE="white-space:nowrap">our&nbsp;non-employee&nbsp;Directors</FONT> is set forth in the sections titled
&#147;Compensation of Executive Officers&#148; and &#147;Compensation of Directors&#148; in the Company&#146;s definitive proxy statement on Schedule 14A for the Company&#146;s 2024 Annual Meeting of Shareholders, filed on April&nbsp;5, 2024 (the
&#147;2024 Definitive Proxy&#148;), commencing on pages 28 and 64, respectively, and is available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000119312524087857/d503384ddef14a.htm">here</A>. Information regarding the participants&#146;
holdings of the Company&#146;s securities can be found in the section titled &#147;Security Ownership of Management&#148; in the Company&#146;s 2024 Definitive Proxy on page 27 and is available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000119312524087857/d503384ddef14a.htm">here</A>, and as updated in the filings referenced below. Supplemental information regarding the participants&#146; holdings of the Company&#146;s securities can be found in SEC filings on Initial Statements of Beneficial Ownership of Securities on Form 3
or Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC on October&nbsp;2, 2024 for Mr.&nbsp;
Kelly (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000124/xslF345X05/wk-form4_1727900197.xml">here</A>); October&nbsp;2, 2024 for Mr.&nbsp;
Jordan (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000126/xslF345X05/wk-form4_1727900428.xml">here</A>); May&nbsp;16, 2024 for Dr.&nbsp;
Cunningham (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000077/xslF345X05/wk-form4_1715887466.xml">here</A>); May&nbsp;16, 2024 for Ms.&nbsp;
Atherton (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000079/xslF345X05/wk-form4_1715888102.xml">here</A>); May&nbsp;16, 2024 for Mr.&nbsp;
Biegler (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000092/xslF345X05/wk-form4_1715892883.xml">here</A>); May&nbsp;16, 2024 for Ms.&nbsp;
Biggins (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000069/xslF345X05/wk-form4_1715885771.xml">here</A>); May&nbsp;16, 2024 for Mr.&nbsp;
Blunt (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000073/xslF345X05/wk-form4_1715886709.xml">here</A>); May&nbsp;16, 2024 for Mr.&nbsp;
Brooks (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000087/xslF345X05/wk-form4_1715890379.xml">here</A>); May&nbsp;16, 2024 for Mr.&nbsp;
Conrado (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000071/xslF345X05/wk-form4_1715886459.xml">here</A>); October&nbsp;3, 2024 for Mr.&nbsp;
Fornaro (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000142/xslF345X02/wk-form3_1727988581.xml">here</A>); October&nbsp;2, 2024 for Mr.&nbsp;
Gangwal (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000140/xslF345X05/wk-form4_1727902390.xml">here</A>); May&nbsp;16, 2024 for Dr.&nbsp;
Gilligan (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000083/xslF345X05/wk-form4_1715889608.xml">here</A>); May&nbsp;16, 2024 for Mr.&nbsp;
Hess (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000075/xslF345X05/wk-form4_1715887165.xml">here</A>); May&nbsp;16, 2024 for Ms.&nbsp;
Mendoza (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000085/xslF345X05/wk-form4_1715889778.xml">here</A>); May&nbsp;16, 2024 for Mr.&nbsp;
Reynolds (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000081/xslF345X05/wk-form4_1715888944.xml">here</A>); and May&nbsp;16, 2024 for Ms.&nbsp;
Soltau (available <A HREF="http://www.sec.gov/Archives/edgar/data/92380/000009238024000089/xslF345X05/wk-form4_1715890920.xml">here</A>). Such filings are available on the Company&#146;s website at<I>
<U><FONT STYLE="white-space:nowrap">https://www.southwestairlinesinvestorrelations.com/financials/sec-filings</FONT></U></I>&nbsp;or through the SEC&#146;s website via the links referenced above. Updated information regarding the identity of
potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the section titled &#147;Security Ownership of Management&#148; of the Company&#146;s proxy statement on Schedule 14A and other
materials to be filed with the SEC in connection with the Special Meeting. </P>
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