SWA 2020OneReport FullReport

2020 One Report
One Team. All Heart.

About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Table of Contents
About the One Report 2
A Word from Gary 3
30,000-Foot View 3
2020 Awards 4
Our Approach 5
People 14
Employees 15
Customers 21
Communities 23
People Data Table 27
Performance 29
Economic Performance 30
Growing Our Robust Network 36
Performance Data Table 39
Planet 40
Environmental Stewardship 41
Energy 43
Waste 47
Planet Data Table 49
GRI Index 50
SASB Index 62
UN SDGs 63
2020 One Report Our Triple Bottom Line

To illustrate our steadfast focus on a triple bottom line—our
The importance of our citizenship commitment was underscored
People, Performance, and Planet—we highlight our citizenship
by the events of an incredibly challenging year. In 2020, we
e orts each year in the Southwest One Report, an interactive
doubled down on commitments to our Employees, Customers,
electronic publication. The integrated One Report combines
Shareholders, suppliers, and communities. Our citizenship e orts
nancial, corporate responsibility, and environmental reporting
give us an opportunity to invest in the People and places our
into a single comprehensive report.1
future depends on.
2020 Southwest Airlines One Report 2

A Word from Gary

“We are not simply a Company of planes—
we are a Company of People. And it is the
Heart of the People of Southwest Airlines
that makes us who we are—yesterday,
today, and forever.”
Gary C. Kelly
Chairman of the Board
and Chief Executive O cer
30,000-Foot View
People are, and always have been, the Heartbeat of Southwest Airlines, and we work
to advance and protect the things that are important in their lives. In 2020, the global
COVID-19 pandemic, resulting economic impacts, and widespread social unrest that
occurred deeply a ected the lives of many, and we sought to do right by our Employees,
Customers, and communities in the face of these di cult circumstances. On the following
pages, you can read more about our citizenship activities during 2020, and see how we
sought to align our e orts with our Heart for People. Welcome to this year s One Report.

Won Four
Ranked 11th Best Airline North America Received a
(in 2020)
FORTUNE World’s Most
Best Airline United States
100
Best Economy North America on the Corporate
Admired Companies®
Best Low Cost Airline Equality Index
North America in 2020
FORTUNE magazine
2020 Tripadvisor Travelers' Human Rights
Choice™ Awards for Airlines Campaign Foundation
Won
Recognized as a
Best Customer Service
Top 50 Program of the Year
Named a
Employer (Rapid Rewards® Program)
Best Loyalty Credit Card
Top 100
Equal Opportunity
Magazine Best Airline Redemption Ability Company
Freddie Awards BetterInvesting Magazine
Named Named the

Best Domestic #1
Designated a
Airline U.S. Airline
Best for Vets:
(in 2020)
Employer Airforwarders Association
Military Times Wall Street Journal

Our Approach
At Southwest, we are committed to doing the right thing by our
People, through our Performance, and in service to our Planet.
Our Employees, Customers, Shareholders, suppliers, and
community partners all contribute to the many opportunities
we see for the future of our Company. We take pride in our
reputation as the airline with Heart, and that naturally extends
to a passion for making a di erence in our communities and
protecting our resources. We listen to and learn from them,
seeking to address their interests in the One Report and beyond.
Our commitment to being a good global citizen is shared in the

way we carry out our Purpose connecting People to what s
important in their lives through friendly, reliable, and low-cost
air travel.
Reporting Scope
The 2020 Southwest One Report is CSR/ESG topics according to our Stakeholders We engaged both internal and external
a snapshot of our corporate social [Communities, Customers, Employees, Stakeholders to determine which ESG topics
Governments and Non-governmental they perceive are most important to our
responsibility (CSR) e orts that fall Organizations (NGOs), Investors, and Suppliers]. business. We then consolidated topics raised
under our People, Performance, and The 2020 assessment examined 28 topics and through Stakeholder engagement inputs,
Planet initiatives. The One Report also helped guide the creation of the One Report. assigned rankings, appraised signi cance of
Topics were grouped into ve categories: business impact for each topic, prioritized
covers our environmental, social, and
Economic, Employees, Environment, topics, evaluated the risk, and developed our
governance (ESG) e orts, and re ects Governance, and Social. key topics matrix (next page).
the period of Jan. 1 to Dec. 31, 2020
Based on Global Reporting Initiative (GRI)
(unless otherwise noted). People, Performance,
guidelines, Southwest identi ed priority topics
using a systematic process for Stakeholder and Planet
The One Report covers only those engagement and feedback prioritization that
consisted of: Our 2020 key topics assessment illuminated
business activities for which Southwest areas for potential opportunities to enhance
generally has complete control or • Evaluating relevant CSR/ESG topics our CSR/ESG reporting approach, and helped
ownership. This report does not include • Identifying internal and external Stakeholders us align our CSR/ESG activities with the
United Nations Sustainable Development
facilities primarily controlled by others, • Assessing the organization s impacts Goals (SDGs), Global Reporting Initiative (GRI),
such as airport terminal space, or • Evaluating the in uence on the and Sustainability Accounting Standards Board
outsourced or subcontracted facilities. Stakeholder groups (SASB) reporting frameworks.
• Prioritizing topics
Key Topics
Southwest recognizes the importance of key
topics in its CSR and ESG e orts, as it helps us
strategically address ESG issues that matter most
to our business and our Stakeholders. Key topics help us strategically address
In 2020, Southwest completed a formal key
ESG issues that matter most to our
topics assessment, conducted by an independent
third party, to identify the most relevant
business and our Stakeholders.

5.0
Employees Economic Social
Importance to external stakeholders

Anti-Competitive Customer Health
ESG Key Topics

CB Collective Bargaining AB Behavior CH & Safety
4.5 CH
FE
GE DE
Diversity Equity,
& Inclusion AC Anti-Corruption DP Data Privacy
CR Et
Matrix 4.0 EP
EH
DE CM
EB Employee Benefits
Employee Health
CM Crisis Management HT Human Trafficking
EH & Safety EP Economic Performance Ph Philanthropy

TE FM
WM HT EO
Engagement with 3.5 SP SD
EC ET Employee Turnover FM Fleet Management SD Supplier Diversity
AB BO Indirect Economic
Ph TE Training & Education IE
Stakeholders resulted in EB
CB Impact
DP Re Recruitment SP Sustainable Procurement
the prioritization of topics. 3.0 AC

BD
Environment Governance
CR Climate Risk BD Board Diversity
2.5
Environmental
EC Compliance
BO Board Oversight
ET
FE Fuel & Energy Et Ethics
2.0
IE Greenhouse
Re GE Gas Emissions
EO Executive Ownership
1.5
WM Waste Management
1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Signific f t to the business

Employees Economic Social Environment Governance
Stakeholder How We Engage

To better understand the e ects of our
citizenship initiatives upon our business,
Employees • Employee surveys • Companywide Culture Committee
we also conducted interviews with:
• Company intranet SWALife • Culture & Engagement Department
• Other internal communication channels • Diversity, Equity, & Inclusion • Southwest Executive Leadership
• Weekly podcasts from our Chairman Department
• Southwest Citizenship Executive
and CEO
Steering Group
Customers • Customer surveys • Customer call centers • Southwest Cross-Functional

• Social media listening • Customer emails
Working Groups
Suppliers • Supplier Diversity Commitment • Engagement with internal participants

• Online supplier portal in the procurement process
• ESG-focused questions in supplier RFPs • Engagement with external participants
in the procurement process (suppliers)
Governance2
Non-Governmental Research and publications from the following NGOs help inform our citizenship approach:
Organizations (NGOs) • Commercial Aviation Alternative Fuels • Sierra Club The business and a airs of Southwest Airlines Co.
Initiative (CAAFI) • Airport Cooperative Research Program (Southwest or the Company) are managed under
• World Economic Forum's Clean Skies for (ACRP) the direction of the Company s Board of Directors
Tomorrow Coalition (Board of Directors). The fundamental responsibility
of the Board of Directors is to promote the best
interests of the Company and its Shareholders
Airports/Government • Engagement with internal participants • Developing public policy positions
from Governmental A airs Department intended to bene t our Employees, by overseeing the management of the
Customers, and communities Company s business. Among other duties
and responsibilities, the Board of Directors is
responsible for (i) overseeing the selection,
Investors • Engagement with internal participants in • Investor-focused standards such as
Investor Relations Department Sustainability Accounting Standards evaluation, development, and compensation of
• Informal investor interviews Board senior management; (ii) assessing major risks
facing the Company and reviewing options to
mitigate such risks; (iii) reviewing, approving,
Regulators We take regulatory compliance seriously, including with respect to standards and
and monitoring signi cant nancial and business
requirements established by:
strategies and major corporate actions; and
• Department of Transportation (DOT) • Federal Aviation Administration (FAA)
(iv) overseeing the processes to maintain the
• Environmental Protection Agency (EPA) • Securities and Exchange Commission
utmost integrity and proper management of
(SEC)
the Company.3
Communities • Employee volunteerism • Community Relations Team Pursuant to Texas law, the Board of Directors
• Charitable contributions and donations • Medical Transportation Grant Program is required to elect a President and a Secretary
• Nonpro t partnerships (MTGP) and may elect such other o cers as the Board
of Directors deems appropriate, which currently
ESG Raters Additionally, we reviewed multiple sustainability reporting standards, and frameworks, and include, among others, the Company's Chief
results from independent ESG research rms to inform our reporting e orts, including: Executive O cer (CEO). The Company's CEO has
• CDP (formerly Carbon Disclosure • Institutional Shareholder Services (ISS) responsibility for the general management and
Project) • Sustainalytics
direction of the Company s business. The duties
• S&P Global Corporate Sustainability and powers of the Company s CEO and other
• EcoVadis
Assessment o cers are set forth in the Company s bylaws.4

The Company s bylaws and other information

about the Company s governance practices,
Board of Directors, and o cers are available on
southwest.com in the Investor Relations section. The Southwest Airlines Citizenship Executive Steering
The Southwest Airlines Citizenship Executive Group (CESG) provides input and guidance on social,
Steering Group (CESG) provides input
and guidance on social, economic, and
economic, and environmental topics.
environmental topics to the Company s CEO,
President, Chief Financial O cer, and Executive
Vice President of Corporate Services, all of
whom contribute to the Company s policy
development and decision-making e orts with
respect to these topics. The CESG meets regularly
and comprises O cers and Leaders from
Employee Experience new Employees, identifying moments that
matter to current Employees, and o boarding
various departments throughout the Company. To create the best possible work environment Employees leaving the Company.
The CESG considers feedback from various and continue our investment in human capital,
Stakeholders and works collaboratively with To create the best possible work environment,
Southwest seeks to provide a stable work
other executive steering groups to take a holistic we strive to provide our Employees with
environment with equal opportunity for learning
approach when considering social, economic, advanced notice of signi cant operational
and personal growth. We focus on bringing
and environmental topics. Other internal changes through proactive communication.
the best People into the Southwest Family by
groups that address CSR and ESG actions and For example, we provided notice to our
investing in human capital with a competitive
initiatives include our Social Topics Committee; Contract Employees (and their respective
total rewards package and providing on-the-job
Enterprise Risk Management Team; Diversity, Unions), as well as Noncontract Employees
training and encouragement to help Employees
Equity, and Inclusion Executive Steering Group; when we made operational changes to our
succeed. DEI has always been rooted in our
and Environmental Steering Group. ight schedule and policy updates related to
Company values, and we strive for our Employee
mask requirements, refund changes, enhanced
population to represent the diverse communities
Southwest s Enterprise Risk Management (ERM) aircraft cleaning procedures, and Customer and
we serve.
Team assists management in addressing the Employee health declarations as a result of the
Company s risk portfolio by collaborating with Employees are treated with the same concern, COVID-19 pandemic.
internal Stakeholders to identify, evaluate, and respect, and caring attitude within our
document risk and mitigation e orts. The ERM We implemented Company procedures that
organization that they are expected to share
Team conducts risk assessments, produces support and respect the protection of human
externally with every Southwest Customer.
internal reports, de nes risk focus areas, and rights within our sphere of in uence, and we
Our strategy for employment and labor practices
escalates critical risks to Executive Leadership. provided notice and training opportunities
is guided by our Executive Vice President
to our Employees on subjects like Human
Corporate Services, our People Department, and
Southwest is committed to continually improving Tra cking awareness. We recognize lawful rights
our Legal Department, which includes a section
the awareness and transparency of our of Employees to choose or not choose collective
devoted solely to Labor and Employee Relations.
governance of environmental and social topics. bargaining representation. Our approach focuses
Some of our recent e orts in this regard include: Our People Department s priorities include on negotiating labor agreements that achieve
(but are not limited to): attracting, developing, positive outcomes for our People and Company.
• Expanding disclosure of how our environmental
stewardship goals will be compatible with our and retaining a diverse, talented workforce;
long-term strategy providing opportunities for learning,
development, career growth, and movement Supply Chain
• Enhancing integration of diversity, equity,
within the Company; evaluating compensation
and inclusion (DEI) principles in our hiring To support our operation, we purchase goods
and bene ts, and rewarding performance;
and development practices to support goals as and services from nearly 4,000 sources across
investing in physical, emotional, mental, and
outlined in the People section of the One Report multiple continents and countries, but the
nancial health and well-being of Employees;
• Expanding governance reporting within the obtaining Employee feedback; maintaining majority of our supply base and spend is in
One Report s GRI General Disclosure section and enhancing Company Culture; and the U.S. domestic market since our network
communicating with the Board of Directors on footprint is primarily as a North American
The Board of Directors also recently updated its a routine basis on key topics, including Executive carrier. We maintain relationships directly with
Compensation Committee s Charter to re ect the succession planning. This work is carried out in various types of suppliers, including service
Compensation Committee s existing practice of collaboration with Southwest Airlines University providers, contractors, manufacturers, brokers,
assisting the Board of Directors with its oversight (SWA U); Culture & Engagement; and Diversity, and wholesalers.
of human resources policies and practices, Equity, & Inclusion Departments.
including the Company's DEI philosophy, We strive to provide Southwest with the highest
practices, and initiatives. We conduct Companywide surveys of our quality products and services at the lowest total
Employees throughout the year to assess their costs. While we have dedicated Teams within
Southwest believes in a sustainable future where job satisfaction. Survey feedback allows us to our Supply Chain Management Department,
a balance exists between protecting the world better improve our ability to attract, develop, such as Fuel Management, Aircraft Maintenance,
for future generations and serving the interests and retain Employees who will help us achieve Technology, and Enterprise Supply Chain, we
of our Shareholders, Employees, Customers, Southwest s business objectives. Our dedicated aim to manage our supply chain holistically and
and other Stakeholders, serving as good Employee Experience Team actively evaluates by utilizing analytically rigorous and dynamic
environmental stewards, fostering a creative and maps the Employee Experience to identify approaches to optimize system e ciency. Our
and innovative workforce, and giving back to opportunities to improve—such as onboarding Supply Chain Management Department monitors
the communities we serve.5 supplier performance, assesses risk and plans for

As we say so long to a year full of the unexpected, let’s take a moment to reflect on
Rising to the a few of the milestones achieved to support the well-being of our Customers and
Employees between March and December. As part of the Southwest Promise, Teams
worked diligently to bolster cleaning efforts while procuring and distributing various
Occasion forms of personal protective equipment and supplies. Our Employees’ flexibility,
determination, and tenacity will be forever etched into the history of our Company.
Fun
4,800,000+ fact:
We purchased
surgical masks enough gloves
distributed for the entire
population of Illinois
16,000
to receive a pair gallons
of hand
Fun sanitizer
purchased
BWI fact:
We distributed enough 13,600,000
masks that when lined pairs of gloves
FLL end to end reach as long purchased
44,500+
as our BWI-FLL flight labor hours
spent cleaning
tray tables and
other aircraft
surfaces
Fun 1,864 443,400+

labor hours spent on
between
flights
acrylic glass
fact: barriers
enhanced overnight
aircraft cleanings
The total area covered installed
by the acrylic glass
barriers that we 15,000+
installed is nearly gallons
the wing area of 7 Labor hours
Boeing 737s of facilities Fun spent cleaning
cleaning
products
fact: aircraft
translates into
422,000 more than
individual purchased
2 oz. bottles 3 round trips
of hand to Pluto on
sanitizer the spacecraft
purchased
for Employees New Horizons

potential supply chain disruptions, and analyzes Veteran-owned, Service-Disabled Veteran-owned, Our Diversity, Equity, and Inclusion
our supply chain spend so we can continuously Minority-owned, Disabled-owned, and LGBT+- Department s vision is to cultivate a diverse
improve performance. owned. A diverse workforce, which includes and inclusive experience for all our People
our suppliers, helps keep Southwest strong to thrive—Employees, Customers, and
Southwest is committed to maintaining our and inspires unity. Partners. The department leads actions and
low-cost Leadership through e ective and measures to promote an inclusive Culture
e cient procurement practices and spending At Southwest, we understand that our business and environment by:
our capital wisely. All suppliers are treated impacts the markets we serve. We strive to
• Assisting with crafting the enterprise s
fairly and impartially during the evaluation positively a ect these communities by way of
DEI vision
and selection process. We use more than one our outreach and engagement initiatives to build
selection process, depending on Company longstanding relationships with our community • Leading strong communication e orts to build
requirements and supply market conditions. partners and suppliers. shared language, meaning, and understanding
Each selection process is focused on nding the
• Managing DEI as a strategic asset
best combination of quality, reliability, e ciency,
and service for Southwest at the lowest total cost. Diversity, Equity, • Auditing and monitoring equity
Internally, our Employees are expected to adhere • Tracking and assessing progress
to a Procurement Policy for Employees and we and Inclusion and improvements
expect all internal and external participants in
the procurement process to observe the highest Southwest recognizes, respects, and values • Reporting to the Board of Directors
standards of ethical conduct. We also have a di erences. By fostering a Culture that embraces • Championing informal and formal
supplier assessment questionnaire as a crucial and utilizes diversity, we promote Teamwork conversations and perspectives on DEI
part of the vetting process and expect suppliers and innovation that contributes to our overall
to comply with applicable laws, including those success. Since 1971, inclusion has always been Southwest is built on a network of relationships.
regarding child and/or forced labor. at the Heart of Southwest Airlines, utilizing Building diverse, equitable, and sustainable
diversity of thought and experience. As the relationships is a top priority. We believe our
Our e orts to respect and protect human rights underdog creating a new way to y, we needed DEI Promise is a key tool in nurturing inclusion.
also extends to our supply chain. We partner everyone and their point-of-view to make that
with our suppliers to have a positive impact with goal a reality. • It’s about Team: The collaboration of thoughts,
the products and equipment we use in the skies, backgrounds, and experiences helps us achieve
on the ground, and in our o ces. We seek to Southwest is committed to advancing diversity, our common goal as a Team
build sustainable relationships with our suppliers equity, and inclusion (DEI), and as we continue • It’s about value: Our Employees value
to help ful ll our operational needs, stimulate our journey, we will maintain our e orts to the ability to bring their authentic selves
economic growth in the communities we serve, cultivate a workforce and Leadership Team to to work each day while meeting our
support small and minority-owned businesses, re ect the diversity of the communities we serve. Southwest expectations
and satisfy the expectations of our Stakeholders. We will also support learning and development
e orts that are democratized and inclusive • It’s about respect: Our pride in Southwest
Our Supplier Diversity Program looks to build
of various career growth paths. Airlines fuels our unity. The respect we show
sustainable, diverse suppliers that are: Small,
our Fellow Employees matters to our work,
Small Disadvantaged, Women-owned, HUBZone,
our Team, and our Company
Southwest is committed to maintaining our low-cost Leadership through

e ective and e cient procurement practices and spending our capital wisely.

Prior to 2020, we had been on a years-long

journey to advance DEI and build the cultural
competency of our organization. Key performance
indicators (KPIs) to track success of these e orts
came from DEI feedback tools and activities,
such as:
• Employee surveys
• DEI-focused “Pulse Point” intranet surveys
• Event attendance
• Participation in DEI training
We o er anonymity for Employees to share

if other Employees are not aligning to our
Company values. We are committed to
our DEI Promise, and we do not tolerate
discrimination, bullying, retaliation,
or harassment. to meet with Career Mobility Partners who Our Safety Management System (SMS) is
can direct them to speci c SWA U classes, the foundation that enables Southwest to
We have established a ve-year roadmap temporary opportunities, or interview operate safely. The SMS framework has four
with respect to our objectives, so that we can preparation techniques in order to increase main components: Safety Policy, Safety Risk
harness the power of diverse backgrounds diversity and vertical and lateral mobility for all Management, Safety Assurance, and Safety
and experiences that will contribute to our Southwest Employees. Promotion. Each of these components is woven
overall success. In 2021, we seek to continue into our processes and establishes the structure
to build a solid foundation and cultivate shared In 2019, Southwest Airlines partnered with for Safety at Southwest.
understanding among all Employees. As we Gallup® to launch CliftonStrengths, which
move forward, we strive to understand and allows Employees to discover their own Southwest s Safety Policy is re ected in our Safety
establish metrics to track results and progress strengths and helps them empower others to and Security Commitment. The commitment
that will feed the organizational expectation develop theirs. As of March 1, 2021, we have is a pledge of all Southwest Employees and
and provide solid results for feedback. introduced CliftonStrengths to nearly 90% of our Senior Leadership to the Safety and Security of
departments and plan to expand the program s our Customers and Employees—it establishes
reach to every Employee. clear Employee expectations and associated
Training and Southwest believes our focus on diversity training
accountability. Southwest Employees are
expected to demonstrate their commitment
Development enables enhanced Teamwork and innovation. to Safety by:
In 2020, we partnered with Mind Gym to launch
• Following Company policies and procedures
Southwest Airlines University (SWA U) provides a their Fearlessly Authentic curriculum, which
variety of training and curriculum options such as supports our commitment to foster an inclusive • Identifying anything that could cause damage
classroom training, distance learning, on-the-job environment where Employees embrace or injury
training, mentoring, and blended learning for di erences and feel a sense of belonging.
• Reporting hazards through Companywide
our Employees. We regularly evaluate skill sets
reporting tools
needed by our Employees to stay competitive in
an ever-changing, highly regulated environment. Occupational • Knowing and understanding our Safety
and Security Commitment
Traditionally, our Employees received the Health and Safety
majority of their training at our Dallas campus, Our operational processes incorporate
but our training approach shifted in 2020 due to Southwest Airlines Operational Philosophy participation from Employees to help identify,
the pandemic. SWA U launched the Southwest de nes key principles and expectations for develop, and implement procedural changes,
Learning Center in June to provide Leaders and Frontline Employees. Most importantly, and including those speci c to mitigating hazards.
Employees with a clean, simple catalog of virtual without compromise, we put Safety rst.
training opportunities—addressing both required Employees follow Company policies and The Safety Risk Management function of our SMS
training needs and optional curriculum. procedures designed to enable operations at provides a proactive, systemic, and standardized
an acceptable level of risk for Southwest. Next, process designed to identify hazards and
In 2020, we also launched Career Mobility and only after operating safely, we balance low risks to the operation and workplace before
as a centralized resource for our Employees cost and Reliability, all delivered with world-class they become injuries, accidents, or incidents.
to learn about the skills, experiences, and Hospitality. The Operational Philosophy provides Safety Risk Management is designed to mitigate
education needed for their next career step at a framework to operate safely, and in turn, risk through the implementation of e ective
Southwest. Career Mobility allows Employees position Southwest Airlines for success. risk controls.
Launched Career Mobility as a centralized resource for Employees to

learn about the skills, experiences, and education needed for their next
career step at Southwest.

Four Functions of Southwest's Safety Economic Impact

Management System (SMS) Jobs and bene ts, returns on investment,
business partnerships, and Customer Service
and Safety are all ways in which our economic
Safe performance matters to our Employees,
Safety Promotion ol
icy ty
R
Customers, Shareholders, suppliers, and the
isk
yP
Ma
Safet
Includes training, communication, and other communities in which we operate. We strive
nagement
actions that create a positive Safety Culture Safety
Promotion to continuously improve our Performance by
within all levels of the Company focusing on our Purpose, and our People are
Sa
f e ty e
dedicated to ful lling our Vision. Southwest is
A s s u ra n c known for a triple bottom line approach that
contributes to our Performance and productivity.
Employees share in Southwest s success with our
Pro tSharing Plan, the rst in the airline industry.
This approach helps us retain Employees,
Establishes our commitment Determines the need for, and Evaluates the continued reducing turnover costs. We expect our market
to continually improve Safety, adequacy of, new or revised effectiveness of risk controls presence to generate substantial savings
and defines the methods, risk controls based on the and supports the for our Customers through the well-known
processes, and organizational assessment of acceptable risk identification of new hazards Southwest E ect of invigorating competition
structure needed to meet our by reducing fares and stimulating additional
Company’s Safety goals passenger tra c in the cities where we y.
Our commitment to the Planet helps us

manage costs by using resources e ciently
Safety Safety Risk Safety and identifying emerging environmental trends
Management Assurance and risks. In the air, we strive to responsibly
Policy
manage our fuel consumption and improve
our emissions intensity. Given fuel is one of our
largest expenses, managing fuel consumption is
not only good for the environment, it s also good
for our bottom line. Regarding our position on
potential risks associated with climate change,
The Safety Assurance function of the SMS Partnership, and Florida Economic Development in our CDP (formerly the Carbon Disclosure
relies on data and analytics to continuously Council. We uniquely contribute to each Project) response, we identi ed risks associated
measure and analyze the e ectiveness of community focusing on gaps and opportunities with regulatory change and physical climate
risk controls and overall Safety performance. that will help drive economic, social, or risks like extreme weather events as having the
Southwest monitors Safety performance using environmental bene ts. potential to create operational complexities.
a variety of data including Employee reporting, These complexities may a ect airline operations,
aircraft information, Safety investigations, fatigue We provide life-changing transportation for which could result in impacts to operational and
programs, and audits. Using the data, we conduct families in need and medical professionals capital costs and ontime performance.
root cause analyses, execute audits, and perform during times of crisis, and humanitarian relief
procedural change analysis to recommend work cargo shipments that aid in life-saving e orts. Southwest has de ned contribution plans
process and equipment changes. We advance DEI through many of our e orts covering most of its Employees. The Company
and promote environmental stewardship sponsors Employee savings plans under
All areas of the SMS receive Companywide and through many conservation-focused projects. section 401(k) of the Internal Revenue Code
department-speci c Safety Promotion support, And we concentrate on building resilience in of 1986, as amended. The Southwest Airlines
which includes both training and communication the communities we serve by engaging in civic Co. 401(k) Plan includes Company matching
related to Safety. Southwest has developed and community partnerships and investing in contributions subject to limits speci ed by the
speci c job function training built around disaster preparedness, recovery and response, Board of Directors, the Internal Revenue Code,
comprehensive standards intended to provide and education. and applicable U.S. Treasury regulations, and
Employees the skills they need to operate safely. the Southwest Airlines Pilots Retirement Saving
We remain diligent in monitoring emerging Plan has non-elective Company contributions.
societal issues and topics. Our response to these In addition, the Company may contribute a
Community Outreach circumstances is based on a number of factors,
including the potential impact on our Employees,
percentage of its eligible pre-tax pro ts, as
de ned, on an annual basis to the Southwest
Southwest's Community Outreach e orts consist brand and reputation, business operations, Airlines Co. Pro tSharing Plan (Pro tSharing
of authentic civic and business relationships and Customers. Plan) a de ned contribution plan. No Employee
across the more than 100 communities within contributions to the Pro tSharing Plan are
the Southwest system. In 2020, we contributed We regularly review our annual community allowed. The amount associated with the
to 95 national, state, and local membership contributions and continue to evaluate their Company's de ned contribution plans expensed
organizations including, but not limited to, e ectiveness through impact reports and in 2020 was $561 million.
the U.S. Chamber of Commerce, Greater ongoing touchpoints with key partners and
Baltimore Committee, Downtown Denver Inc., Stakeholders. We regularly solicit reports and Additionally, the Company provides
Dallas Regional Chamber of Commerce, Hawaii metrics from our Partners and we continue to post-retirement bene ts to quali ed Retirees
Lodging and Tourism Association, Los Angeles hone our own reporting process to further re ne in the form of medical and dental
Area Chamber of Commerce, Greater Houston our overall citizenship progress and results. coverage. Employees must meet service

and age requirements as set forth by the

Company, or as speci ed in collective
Act provided a temporary tax holiday from
collecting and remitting certain government
Environmental Commitment
bargaining agreements with speci c workgroups. ticket taxes for tickets purchased between We have evaluated and implemented ways we
Employees meeting these requirements, as March 28, 2020 and Dec. 31, 2020. can improve environmental stewardship. We have
de ned, may use accrued unused sick time aggressive e orts in place to reduce emissions
to pay for medical and dental premiums from Our market presence and low fares are designed intensity, manage waste, use fuel more e ciently,
the age of retirement until age 65. All medical to stimulate economies in cities where we y. and repurpose materials to minimize impact on
plans are unfunded, and Southwest pays We also make investments in infrastructure land lls. This includes:
bene ts as they become due. Estimated future and services that more broadly a ect the • Partnering with organizations such as Red Rock
post-retirement bene t payments expected to communities we serve in terms of jobs, access Biofuels and the Department of Energy's National
be paid are $24 million in 2021, $25 million in to services, or other impacts. By working with Renewable Energy Laboratory (NREL) to support
2022, $24 million in 2023, $24 million in 2024, local communities and regulators, we strive sustainable aviation fuel (SAF) development
$26 million in 2025, and $146 million for the to maximize our total investments to bene t and production
next ve years thereafter.6 Learn more about and enhance local and regional economies.
our post-retirement bene ts on page 143 of To steward our resources responsibly, we • Returning the Boeing 737 MAX 8 to service,
the Company's 2020 Annual Report. regularly review our annual investments and our most fuel e cient aircraft
continue to evaluate their e ectiveness through • Expanding our Boeing order book through 2031,
As a result of the COVID-19 pandemic, the impact reports and ongoing touchpoints with including 100 additional Boeing MAX 7 aircraft,
Company entered into de nitive documentation key Partners and Stakeholders. which are expected to replace less fuel-e cient
with the United States Department of Treasury Boeing 737-700 aircraft
(the Treasury) with respect to funding support
pursuant to the Payroll Support Program Environmental • Continuing ongoing work of our Repurpose with
Purpose program, which diverts materials and
(Payroll Support) under the Coronavirus Aid,
Relief and Economic Security Act (CARES Act). Stewardship items traditionally destined for land lls while
During 2020, the Company received a total of generating social and economic opportunities
$3.4 billion of relief funds under the CARES We recognize the importance of environmental for communities
Act. As consideration for the Payroll Support, stewardship and believe it s our responsibility
the Company issued a promissory note (the to protect our Planet now and for future During 2020, Employees from across the Company
Note) in favor of the Treasury and entered generations. We do our part to make reviewed existing plans and developed new ideas
into a warrant agreement with the Treasury environmentally responsible decisions; to strengthen our environmental commitment:
(the Warrant Agreement), pursuant to which minimize our environmental impact by • Focusing on the goal of carbon neutrality by
the Company agreed to issue warrants (each, collecting and analyzing information on our 2050 and are looking to incorporate more
a Warrant) to purchase common stock of the energy consumption, emissions, and waste; Sustainable Aviation Fuel (SAF) partners and
Company to the Treasury. During 2020, the and improve the actions we take to mitigate introduce carbon o setting into our operation8
Company provided a Note in the aggregate our impacts.
• Improve our owned facilities
amount of $976 million and issued Warrants
In 2020, a third-party assessment of Southwest s environmental footprint
valued at a total of $40 million to purchase up
to an aggregate of 2.7 million shares of the greenhouse gas (GHG) emissions inventory • Create a sustainable in ight experience for
Company's common stock, subject to adjustment was completed in accordance with the AA1000 our Customers
pursuant to the terms of the Warrants. Pursuant Assurance Standard. This assurance engagement
included our Scope 1, Scope 2, and Scope 3 • Continue our work with a variety of organizations,
to the terms of the Payroll Support Program
GHG emissions.7 nonpro ts, and government entities, including
agreement and the CARES Act, the Payroll
Airlines for America (A4A), whose work
Support funds could only be utilized to pay
As of Dec. 31, 2020, we are meeting our GHG complements our e orts to advance our
qualifying salaries, wages, and bene ts, as
emissions targets without using carbon o sets. environmental commitment
de ned in the CARES Act. In addition, the CARES
• Invite individual and Corporate Customers to
participate in any future carbon o set program
Environmental Compliance
Maintaining compliance with local, state,
and federal environmental laws and regulations
We recognize is fundamental to our environmental policy.
We continually work to meet our annual goal
the importance of zero recorded environmental violations.
of environmental Our Environmental Services Team regularly
conducts audits to review compliance, and works
stewardship and believe to improve our performance by utilizing our
environmental management system (EMS),
it’s our responsibility following environmental guidelines and procedures,
implementing corrective action, and training our
to protect our Employees to meet our compliance goals.
Planet now and for Our standard auditing protocol assesses
future generations. a location s recordkeeping permit status,
and compliance with requirements of
regulatory plans such as Storm Water Pollution

Prevention Plans, Spill Prevention Control, and

Countermeasure Plans. We perform a visual
walk-through inspection to con rm that key
compliance practices are enacted in each of the
cities we serve. At all of our locations, we also
track spills, audit ndings and corresponding
corrective action, and information about permits
and their expiration dates. We set goals and use
an EMS and chemical management system (CMS)
to aid in our e ort to maintain compliance with
environmental regulations, minimize costs and
risk, and measure our e orts to improve our
environmental performance. Southwest s Leaders
and Employees are also responsible for:
• Auditing our environmental vendors to range of policymakers and Stakeholder groups In 2020, contributions from the Freedom Fund
verify their operations are compliant, directly. We also present our views on these totaled $145,000 to political committees at the
and they demonstrate a commitment to topics through trade associations, chambers federal level and $23,500 to political committees
environmental stewardship of commerce, and interactions with public at the state and local levels. Moreover, the
• Continuing to improve our performance o cials at the federal level and in the states Company contributed $2,000 directly to political
for reducing GHG emissions intensity and communities we serve. campaigns at the state and/or local level in one
state (California). In 2020, the Company did
• Providing transparency of our environmental One trade association in which we participate not support or nance any state or local ballot
performance to our Stakeholders through is Airlines for America (A4A), which allows us measure before voters. At the federal level, no
public reporting and third-party veri cation to gain insight into core issues for the airline Company funds were used to support or nance
and assurance of our GHG emissions inventory industry as a whole and to advocate jointly for any political campaign, nor did the Company
regulations that support a healthy, competitive support or nance any so-called Super PACs
industry. We also bene t from the opportunity or any political committees organized under
Sustainable Aviation to share technical expertise and operational section 527 of the Internal Revenue Code.
Fuel (SAF) knowledge that leads to improved margins The Company made no contributions to a
Given that fuel is one of our largest expenses of Safety and Security, greater Employee and politically-a liated 501(c)(4) organization
and the burning of it produces GHG emissions, Customer Satisfaction, and better overall in 2020.
we strive to reduce future emissions while operational e ciency and Reliability.
continuing to provide safe, reliable, and In 2020, A4A, our airline industry trade
a ordable air transportation for our Customers. Southwest has adopted a policy that it will association, determined that $931,559 of the
primarily use its a liated political action total dues paid by the Company to A4A were
Southwest commits to explore environmental committee, the Southwest Airlines Co. nondeductible lobbying expenses. Southwest
policies and practices of potential sustainable Freedom Fund (Freedom Fund), nanced by also paid dues to several other national, state,
aviation fuel suppliers, speci cally with respect to voluntary Employee contributions, to support and local trade associations, and chamber
mitigating deforestation and forest degradation political campaigns. Company funds will be organizations, in which a portion of those
in the production of sustainable aviation fuels. limited to supporting selected political dues were used by these organizations for
campaigns at the state and local level in nondeductible lobbying activities. However,
compliance with the laws of the relevant states in all cases, that portion was not more than
E uents and Waste and localities. We hold in high regard the $1,500 annually for each organization.
responsibility of managing the Freedom Fund
While these topics are outside the boundary
and being good stewards of our Employees
of key topics for Southwest, we continue to
hard-earned dollars. We have a time-tested
report on our waste and recycling e orts as
evaluation process when considering Freedom
they minimize our environmental impact by:
Fund contribution requests and our criteria for
• Conserving natural resources, including giving are evaluated annually. Additionally, the
e cient water and raw materials criteria, as well as all political campaign
use, while continuing to meet our contributions from the Freedom Fund or by the
operational requirements Company directly, are approved by the Senior
• Minimizing waste and pollution from our Vice President of Governmental A airs and Real
operations and preventing it where possible, Estate, and overseen by Southwest s Executive
while remaining true to the triple bottom line Vice President, Chief Legal and Regulatory
of People, Performance, and Planet O cer, with an annual summary of those
contributions provided to the Southwest Board of
Directors. All political contributions are intended
Public Policy to promote the interests of the Company and are How We Support
not guided by any private political preferences of
Legislative and regulatory changes have the any Employee. All contributions by the Freedom the Global Goals
potential to limit our opportunities for growth, Fund are disclosed via publicly available reports
and government policies and legislation led monthly with the Federal Election
can have a deep impact on how we do Commission. The Company strives to comply with Read more
business. Our Governmental A airs Team all applicable federal, state, and local campaign
works to stay on top of proposed statutory nance restrictions and disclosure requirements.
and regulatory changes and to educate a wide

Putting People First

As you read through this section of the One Report, you might notice that we talk a lot about
our People. When we say our People, we mean more than our Employees. Of course we love
our Employees (they're Members of our Southwest Family!), but we also believe that our Customers
and communities are “our People” too. So we treat them with the same concern, respect, and
caring attitude that they d experience as part of the Southwest Team. So when we say our People,
you ll know what we mean: we re a Company of our People, focused on serving our People.
Enhanced DEI Southwest

Promise $3 million
Commitment Provided more than $3 million in
Successfully launched the Southwest
Evolved our hiring and development support to help those affected by
Promise, supporting the health and
practices to support newly established the COVID-19 pandemic
well-being of our Customers and Employees
diversity objectives
during the COVID-19 pandemic
Employees p15 Customers p21 Communities p23 People Data Table p27

KEY TOPIC
STORIES
Employees Employee COVID-19
Response
Over the years, we ve seen how treating our Employees well does good things
for the rest of our business. We provide them with great jobs and bene ts, and
Deepening Our
a world-famous Culture where they are encouraged to draw on their unique Commitment to
perspectives, skills, and experiences in their day-to-day jobs. Because authentic, Diversity, Equity,
empowered Employees make great ambassadors, and that positively a ects and Inclusion (DEI)
Customers, the world around us, and the success of our business. It s no wonder
we ve always said Employees are the Heart of Southwest. Sharing Our
Company Values
Employee COVID-19 Response UN SDG Alignment GRI Index

403-2
403-3
Southwest has a longstanding dedication to preparedness and emergency 403-4
403-5
response. As part of our preparedness mission, we provide resources to plan for 404-2
and respond to emergency events with con dence and compassion to care for
our Employees, Customers, and communities.
Throughout the years, our proactive planning and readiness and entertainment events to restaurants and (of course) airlines.
has helped us handle many kinds of emergencies. We have Following the rst reports of possible COVID-19 cases in the U.S.
Emergency Response Plans in place for aircraft accidents, in January 2020, Southwest pulled together a Disaster Response
weather disruption events, natural disasters, terrorism, and Team and began to coordinate with the U.S. Centers for Disease
infectious disease outbreaks. While we never wish to enact such Control and Prevention (CDC) and other health organizations
plans, knowing we have them in place gives us peace of mind to develop a plan for how to best protect our Employees
and helps us respond quickly in emergency situations like the and Customers.9
COVID-19 pandemic.
Throughout the pandemic, the Team has diligently met and stayed
It s no secret COVID-19 brought the travel and tourism industry in touch with government entities, and we continue to evaluate
to a standstill and a ected every related business from hotels our policies and procedures based on public health guidance,

scienti c research, and advice from medical and aviation

organizations. Some of our earliest policies and procedures
were implemented at the beginning of March. To support our
Customers, we launched resources like the Southwest Promise,
and to further support our Employees, we began making
operation-wide adjustments, such as canceling non-essential
face-to-face meetings, requiring face masks to be worn in all work
locations, and implementing physical distancing.
As the pandemic is ever-evolving, the entire Southwest Team

has tirelessly responded and adapted.
our People are always eager to make a di erence, and many

Keeping Our Employees Informed asked the question, “How can I help the Company during these
times?” Thousands upon thousands of our Employees stepped
Throughout the COVID-19 pandemic, Southwest has continued
up to help Southwest weather this storm. Whether it was
to monitor information from the CDC and partner with medical
sharing and executing cost-saving ideas, helping ll needs in
experts to make informed decisions. We want our Employees to
other departments, or sharing information about the Southwest
be equipped with accurate and timely information to perform
Promise with friends and families to encourage travel, our
their jobs safely while exhibiting the warm Southwest Hospitality
Employees were there to help.
for which we are known. To keep our Employees informed in the
face of a constantly evolving situation, we regularly communicate
Another way our Employees supported Southwest was by
with all of our Employees via internal communication channels
participating in di erent voluntary programs, like the Voluntary
like SWALife (our internal intranet) and other department-
Separation Program 2020 (VSP). This option provided departure
speci c channels.
packages for Employees who wished to permanently separate
from the Company. We also o ered eligible Employees the
In addition to his longstanding weekly podcast, our Chairman
opportunity to take Extended Emergency Time O (ExTO).
and CEO Gary Kelly issued more than 50 video messages to
Approximately 15,000 Employees, representing 25% of our
our Employees in 2020, providing updates from the very top on
workforce, participated in one of these voluntary programs.
the situation at hand, explaining the reasons for newly adopted
These crucial programs reduced our annual 2020 salaries, wages,
operating procedures, and providing strategic business updates.
and bene ts expense by approximately $565 million.
This informative communication format is one we are still
producing for our Employees today.
Many Employees who couldn t take 6, 12, or 18 months through
ExTO could still consider taking a calendar month of Emergency
All Hands on Deck Approach Time O , or ETO. With ETO, Employees maintained bene ts not
typically o ered during a leave of absence (e.g., Travel Privileges).
Part of weathering the COVID-19 pandemic has entailed In addition, Time O Without Pay (TOWOP) and Leave Without
keeping our costs low as we wait for travel demand to recover. Pay (LWOP) could be taken in smaller time increments. Between
Southwest has proudly avoided furloughs in its nearly 50-year March and December 2020, the ETO, TOWOP, and LWOP
history—an astonishing feat in and of itself that was thanks in programs accounted for a savings of approximately $265 million.
part to the passing of the Federal Government's Payroll Support The voluntary e orts many Employees chose, like ETO, ExTO,
Program (PSP) extension in December 2020, and the hard LWOP, TOWOP, and the VSP, helped tremendously to adjust
work of our Employees. As a result of the PSP extension, we do sta ng in light of the reduced travel demand.
not anticipate the need to conduct any furloughs or pay cuts
during 2021.10 We re a Family at Southwest, so seeing the largest departure
of Employees at one time in our history due to VSP was tough,
Avoiding furloughs in 2020 can largely be attributed to our but it was the right option to o er. We were grateful to have
incredible Employees. Our Employees redoubled their e orts to the resources to o er our People the most generous voluntary
cut non-essential spending and reduce costs and were excited program in our history, even in these di cult times. Our Hearts
to try new ideas, such as o ering cargo-only charter ights will always be with those Employees who helped Southwest by
for the rst time in Company history. In true Southwest Spirit, taking the VSP; they will forever be a part of the Southwest Family.

Going Virtual nonpro t organization has its own Board that consists of
Employees from across our Company. This Board reviews
Starting in March, many of our Corporate Campus and applications for nancial assistance and since its inception has
Customer Support and Services Employees began working awarded more than $15 million to Employees and their families
remotely. Internally, this required some quick adjustments to in need. The bulk of SWAECAC s nancial support is thanks to
implement an updated work from home setup and platform the generosity of Employee contributions, private donations,
so our Employees had the right tools and resources to do their department fundraisers and events, and various other fundraisers
jobs. Many departments, workgroups, and Teams pivoted from throughout the year—really making it an initiative that supports
in-person events and activities to virtual. From department–wide Employees, by Employees.
meetings to Team celebrations, many of our Employees embraced
the opportunity to utilize technology and get together virtually to In May 2020, the COVID-19 pandemic continued to cause
stay connected during this time! unexpected hardships for many people around the world,
including some of our Employees and their immediate families.
Southwest Airlines University (SWA U), which provides training In response, SWAECAC made a COVID-19-speci c grant relief
and development opportunities for all Employees, also had to opportunity available for our Employees. The purpose of the
quickly pivot how it supports our Employees. Like many public grant was to provide support due to loss of income as a result
schools and universities around the country, we canceled of the economic e ects of the pandemic and to help o set related
in-person classes and transitioned to a virtual learning model— nancial hardships. Applicants were required to substantiate
all in a matter of days. Topics traditionally taught in a classroom pandemic-related hardship for example, nancial strain due
are now available online. Additionally, a wider range of learning to loss of employment or furlough of a spouse/partner.
content is now immediately accessible, providing a more e cient
experience than traditional in-person o erings as Employees can The Charity continued to accept and review the standard
now complete the curriculum on their own time. applications for Personal Hardship, Disaster Assistance, and
Natural Disaster Urgent Assistance. COVID-19 relief was just an
additional way Employees could seek supplemental support
Employees Supporting Employees during these trying times. In August, the Charity also transitioned
to an online application process, helping improve both the
Since its inception in 1990, the Southwest Airlines Employees
application experience for Employees and operational e ciencies
Catastrophic Assistance Charity (SWAECAC, or the Charity) has
of the Charity. Over the course of 2020, the SWAECAC awarded
o ered support to countless Employees su ering nancial
more than $489,000 in grants to support our Southwest Family
hardships resulting from a catastrophic event in their lives.
in need.
Operating as a separate entity from Southwest, this 501(c)(3)
Southwest COVID-19 2020 Event Timeline
• Southwest began • Disaster Response Plan activation • Launched the Southwest Promise • Launched a • Began collaborating with • PSP extension
COVID-19 • International service halted • Announced that face coverings self-declaration health Stanford University School of passed
communication • Inflight service changes launched would be required along with form for our Employees Medicine and Harvard • Seat blocking
to Employees • Flight schedule reductions began updated physical distancing and • Science-based decision to directive ended
• Emergency Time Off launched boarding procedures resume selling all available seats
• COVID-19 was declared a pandemic for travel beginning Dec. 1
• Began collaborating with UT
Southwestern Medical Center (UTSW)
2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021
• Southwest participated in Payroll Support Program (PSP) • Announced voluntary • Modified our • Continued to lobby in
• Launched seat blocking directive separation and extended inflight service Washington, D.C. on behalf of
• Began enhanced cleaning and temperature leave programs our Company and Employees
screening at Southwest facilities • Introduced the Customer for the PSP extension
• Began using electrostatic disinfectant Health Declaration
spray in our cleaning procedures

Deepening Our Commitment to UN SDG

Alignment
GRI Index
405-1
Diversity, Equity, and Inclusion (DEI)
In many di erent ways, 2020 was a trying year. People throughout the world were
a ected by a devastating global pandemic that had serious nancial implications,
forcing many businesses to shutter. And in the wake of the tragic killing of George
Floyd, racial tensions and social unrest came to a head in the United States and then
swept to other parts of the world. The circumstances of George Floyd s killing and
that of too many other Black Americans—highlighted the importance of continued
e orts to address racial injustice, and Southwest is committed to doing its part. We
must not tolerate racial injustice. We must not tolerate hate. We must stand for love.
Following the events of sumer 2020, Southwest developed

a Diversity, Equity, and Inclusion (DEI) Rapid Response Team
Who We Are at a Glance comprised of cross-functional internal Stakeholders and
subject matter experts who quickly evaluated our current
e orts and made additional recommendations to enhance
By Gender our commitment to DEI:
• Launched a Diversity Leadership initiative with representatives

from multiple departments
• Enacted processes to support diverse candidates and

42% 58% interview panels
Female Male
• Enacted People development tools, including a formalized
mentorship and sponsorship program
By Ethnicity / Race • Launched a DEI education and training program with recurrent,
required DEI training for Leaders
(0.7%) American Indian
or Alaska Native
• Adopted and designed a customized, unconscious bias training
(2.6%) Two or More Races called “Fearlessly Authentic” to serve as the foundational tool to
(1.5%) Native Hawaiian or educate and equip all Employees in cultivating and nurturing a
Other Pacific Islander
diverse, equitable, and inclusive Culture
(3.9%) Asian
• Made talent advancement and management tools more
(14.8%) Hispanic or Latino
accessible to Leaders and Employees
(16.3%) Black or African American
(60.2%) White
Based on voluntary reporting by Employees.

In the fall of 2020, we announced the following objectives:
• Evolving hiring and development practices to enhance diversity,

including posting all open Leadership positions (Supervisor
to Vice President) and requiring diverse candidate slates for
each role
• Measuring progress in increasing diversity in Senior Leadership, For nearly 50 years, Southwest has exempli ed a
including our Senior Management Committee passion for putting People rst, which includes standing
for diversity, equity, and inclusion. At Southwest, we
• Engaging breadth of community Partners to leverage those recognize, respect, and value di erences while fostering
relationships as we source diverse talent a Culture and workplace that embraces and utilizes our
diversity. Throughout 2020, we had many important
Additionally, the Southwest Board of Directors has committed to and crucial conversations around this topic that helped
increasing its diverse representation by 2025.11 Southwest s DEI us identify additional ways we can improve our e orts
pillars and key focus areas are Career, Culture, Community, and an important part of how our Company will continue
to become the most loved, most e cient, and most
Customers. We strive to operationalize DEI in all of these areas.
pro table airline in the world."
Education, Bias Training, and Advocacy —Bob Jordan, Executive Vice President
of Corporate Services
Southwest has always stood for inclusivity, with the support of
Leaders, Employees, Diversity Council, Military Ambassadors, and
President s Council. In 2020, we continued to have conversations
about DEI inside our Company and throughout our communities.
Knowing that we can always do better, throughout the year
Southwest made adjustments and improvements and took new
conversation is a key lever in helping to foster an environment
strides on initiatives that we believe will help us better advance
of value and respect. These important conversations allow us to
our e orts to combat racism and promote inclusivity.
harness the best in each of us. When we can bring our full selves
to work, we, our Customers, and our business all thrive.
Listen, Learn, and Act
In 2020, the Southwest Diversity, Equity, and Inclusion Department
DEI isn t a new focus for Southwest, but the events of 2020 gave completed numerous workshops and listening forums through a
us an opportunity to look inward at ways we can do our part to model of listen, learn, and act, to begin examining more deeply
continue driving change and champion an inclusive workplace. the issues of racism, equity, and inclusion. Many workgroups
One of the rst ways we can drive change is by creating and throughout the Company created psychologically safe spaces for
inviting conversations. Fostering open conversations contributes additional dialogues and discussions about these important
to our learning and understanding and allows us to be topics. We also distributed refreshed resources to educate
comfortable with the uncomfortable feeling often associated with Employees and Leaders and guide our Employees in having
conversations on race, equity, and inclusion. It is our view that conversations about race and inclusion.

Sharing Our Company Values GRI Index

102-16
Southwest is known for our legendary Hospitality and world-famous Culture. Our Culture is often
imitated but never duplicated, and every Employee plays a role in promoting and preserving it.
Happy, empowered Employees make great ambassadors, and they positively impact our Customers,
our business, and the world around us.
Over the past ve decades, we ve remained steadfast in our Our updated Values are more clear, tangible, and actionable for
Purpose to connect People to what s important in their lives our Employees. Members of the Southwest Family were mindful
through friendly, reliable, and low-cost air travel. As we prepared when making this update to capture the attitude of Southwest.
for our 50th year in business, we took the opportunity to re ne Today, more than ever, our Values speak to the Heart of who we
our Company Values and further strengthen their alignment to are and how we treat each other.
our Vision to be the world s most loved, most e cient, and most
pro table airline.12 Our Culture is not easily emulated by our competitors it s what
makes Southwest unique—the power of a smile; someone going
In 2020, we evolved our Vision to be the world s most e cient the extra mile for a Coheart or Customer.
airline—to execute a consistent, reliable operation with an
uncompromising commitment to Safety and compliance. There's never been a more important time in our history to focus
E ciency has been a hallmark of our success through the on who we are, what we believe, and how we behave. Our Values
decades and is a timeless theme that is part of our DNA. keep us true to our core while enabling us to scale for the future.
Values
Me We Southwest
How I Show Up How We Treat Each Other How Southwest Succeeds
Pride Teamwork Efficiency

Have a strong work ethic, take initiative, Practice civility, embrace Team over self, Don’t make the easy hard, keep costs low,
and be accountable and be inclusive and stay agile
• We are dependable and engaged • We assume positive intent • We embrace simplicity
• We put our Hearts into our work • We appreciate the strengths of our Cohearts • We look for ways to improve
• We do not blame others • We avoid tribalism • We are flexible and open to change
Integrity Honesty Discipline

Act like an owner, choose to do right, Speak up, be transparent, and tell the truth Be safe, focused, and reliable
and be courageous • We handle issues proactively • We comply with policies, procedures, and regulations
• We do not walk past problems • We seek the truth and do not gossip • We consistently produce high-quality work
• We spend Company money wisely • We are straightforward and sincere • We do not get distracted from our work
• We do not sacrifice our integrity for results
Humility Service with LUV Excellence

Don’t take yourself too seriously, Practice Hospitality, live by The Golden Rule, Get results, win the right way, and kick tail
keep perspective, and don’t be a jerk and don’t be rude • We do our best every day
• We keep our egos in check • We make others feel welcomed, cared for, and appreciated • We are not complacent
• We understand it’s not all about us • We treat our Customers with respect • We know what it takes to win
• We bring a sense of fun to hard work • We embrace and support our communities

KEY TOPIC
STORIES
Customers Southwest
Promise
At Southwest, we take a di erent approach to Customer Service compared with most companies.
We view each Customer as a valued, unique individual and when you re serving real People
with varying needs and wants, a one-size- ts-all approach just doesn t work. We strive
to always serve our Customers from the Heart, with respect, compassion, and Southwest
Hospitality. And as we look into the future, we believe our approach will help us continue to
enact our Vision: to be the world s most loved, most e cient, and most pro table airline.13
UN SDG GRI Index

Southwest Promise Alignment
403-1
403-2
403-3
The onset of the COVID-19 pandemic created many challenges for industries all over the 403-4
world, including airlines. Like so many other companies, Southwest quickly pivoted 416-1
SASB Index
in 2020 and adjusted parts of our business in order to respond to the pandemic. TR-AL-540a.1
Beginning in March 2020, we made multiple changes to our We hope all of our Customers feel that when they are ready to
policies and operations to better support the comfort and peace travel again, we re ready to welcome them onboard with actions
of mind for our Employees and Customers: a commitment we that support their well-being. Here is a closer look at the policies
referred to as the Southwest Promise. and procedures that we implemented over the course of the
pandemic in 2020:
As part of the Southwest Promise, we employed various
procedures throughout the travel journey to respond to
the pandemic, including cleaning practices such as using Cleaning around the clock
electrostatic and anti-microbial spray treatments in the cabin, • Both an electrostatic disinfectant and an anti-microbial spray
physical distancing measures, modi ed boarding procedures, applied on every interior surface of the aircraft, killing viruses
and face-covering requirements for Employees and Customers. on contact and forming an anti-microbial coating or shield
The Southwest Team continues to evaluate its policies for 30 days
and procedures.

• Sani-Cide EX3, a broad-spectrum disinfectant, used to clean

onboard lavatories and tray tables before every ight
• Deep clean each aircraft interior from nose to tail for

approximately six to seven labor hours every night
• Every aircraft is equipped with a sophisticated air distribution

system that introduces fresh, outdoor air and HEPA
(high-e ciency particulate air) ltered air into the cabin while
in ight, resulting in exchange of cabin air every two to three
minutes. We use HEPA lters onboard that remove 99.97%14 of
airborne particles—similar to the technology found in hospitals
• Hand sanitizer available at the check-in kiosks, ticket counters,

and gates; wipes available for Customers onboard
• We cleaned the ticket counters, gates, and baggage claim areas

multiple times a day
Helping everyone keep their distance

• We posted airport signage and oor markers to encourage
physical distancing in gate areas
• Boarding
Equipping Employees and Customers
• We boarded in smaller groups on only one side of the
• Our Employees and Customers were required to wear face
boarding stanchions to allow for physical distancing
coverings that t snugly over the face, cover the nose and
• Family boarding did not change, but we encouraged families mouth, and secure under the chin
to respect the personal space of others during boarding
• We provided Passengers with sanitizing wipes
• Acrylic glass was installed at ticketing and gate counters
and baggage service o ces
Consulting the experts
We continue to evaluate our policies and procedures based
on public health guidance, scienti c research, and advice from
medical and aviation organizations, such as:
• Harvard s T.H. Chan School of Public Health
• UT Southwestern Medical Center
• Stanford University School of Medicine
• U.S. Centers for Disease Control and Prevention (CDC)
• The International Air Transport Association (IATA)
• The Boeing Company
• U.S. Department of Defense s U.S. Transportation Command
• Medical professionals and infectious disease experts who

we retained to advise us during the pandemic

KEY TOPIC
STORIES
Communities Community
Outreach during
Our focus on communities is a natural extension of Southwest s People-centric approach COVID-19
to citizenship. We seek to connect People to what s important in their lives and the
communities where we live, work, and play are an essential part of what brings us
Community
together. We believe that cooperation can advance our impact, so we partner with Outreach Initiatives
like-minded people and organizations to promote resilience, civility, and peace in in Our Communities
our communities.
Community Outreach during COVID-19 UN SDG Alignment GRI Index

413-1
For nearly 50 years, Southwest has connected People and championed communities.
We marshal our resources to help the communities thrive where our Employees and
Customers live and work. As the airline with Heart, we do this by investing our time,
creativity, and resources.
In 2020, the COVID-19 pandemic provided us with new

Helping Our Healthcare Heroes
opportunities to serve People when they needed it most.
Despite challenges to our business posed by the pandemic, the Our crisis response e orts in 2020 included donating Southwest
Southwest Family rallied to nd a variety of ways to serve those ights and cargo services for healthcare workers and their
impacted. Through our cumulative e orts to put our Heart in supplies. We provided more than 650 complimentary ights,
action, Southwest provided more than $3 million in support to valued at over $130,000, for medical personnel to assist in highly
help those a ected by the pandemic. impacted areas such as California, Illinois, Hawaii, New York,
and the Navajo Nation in Arizona.

As one example, during the summer we partnered with

Assisting Our Community Partners
the Hawaii Emergency Management Agency to provide
transportation for 198 courageous medical professionals who To meet the needs of the diverse communities we serve, we have
traveled to Hawaii to relieve local hospital employees. This relief longstanding relationships with community outreach Partners
e ort was an important component of the state s COVID-19 throughout the country. In May, we asked our Customers
response plan and helped hospitals continue to provide for help by supporting three Southwest community partners
high-quality care to patients. working to build resilient communities in the face of COVID-19—
Feeding America, American Red Cross, and Team Rubicon.
In true Southwest fashion, our Employees didn t disappoint by We initiated a giving campaign that allowed Customers to support
welcoming and honoring these heroes. Our Teams at Oakland these partners through direct nancial contributions and any
International Airport (OAK) and Daniel K. Inouye (HNL) created Customer who donated at least $25 was o ered 10x the Rapid
a unique gate experience for the medical professionals as they Rewards® points for each dollar given. Through this campaign,
boarded and landed. our Customers helped us raise more than $650,000 to support
organizations that provide vital services for those impacted
We also donated our cargo services to humanitarian relief by COVID-19.
organizations by shipping personal protective equipment
(PPE), ventilators, and other life-saving medical devices across
the country.
Sharing Heart and Snacks

While our community support often comes in the form of
complimentary ights, last year we also donated food products
traditionally used during our in ight snack and beverage service. “At a time when the world was reeling from the
e ects caused by the COVID-19 pandemic, and the
With food shortages in many parts of the United States, we state of Hawaii was coping with the strain on our
identi ed a unique opportunity to donate unused products healthcare systems, Southwest's e orts bringing
from our normal in ight snack and beverage service. In July, medical surge sta ng was crucial in saving lives
and mitigating the spread of the virus throughout
we provided nearly 13 tractor-trailers full of product (valued at
our population.
more than $655,000) to 15 food banks nationwide that are a
part of the Feeding America network. In addition to food banks,
the donated products supported hospitals, homeless shelters, Luke Meyers, Hawai i Emergency Management
senior centers, and children s feeding programs putting food Agency (HI-EMA) Administrator
directly into the hands of those who needed it most, including
frontline volunteers. These donations continued throughout the
year, reaching additional people who needed the support.

2020 also marked what would have been the 35th Southwest
Airlines LUV Classic Golf Tournament and Party. While we missed
the traditional party in 2020, we celebrated in a unique way by
donating a total of $1 million to 101 local charities focused on
serving children, their families, and communities, and providing
relief from COVID-19 impacts. This donation was timely and
helped these organizations continue their missions.
Supporting Our Students

In 1997, Southwest launched our award-winning Adopt-A-Pilot
program, which gives classrooms an opportunity to “adopt”
a Southwest Pilot. Over the years, Southwest Pilots have
touched the lives of more than 632,000 students, bringing
aviation-themed curriculum to thousands of classrooms around
the country.
In 2020, we adapted the program to help teachers and parents.

Virtual learning can be challenging for everyone involved,
and we wanted to help teachers and parents get away from the
usual curriculum. Since Pilots were unable to visit classrooms,
we brought the Adopt-A-Pilot program to viewers through a
series of videos and lessons, allowing teachers and parents
to supplement their virtual learning curriculum with STEM-
centered content. These activities and experiments are taught by
Pilots and designed to show teachers and parents various ways
to engage the curiosity of fth-grade students (teachers and
parents may be able to adjust this education programming to
“Today and every day, we believe a strong
engage other age groups). To access the curriculum, please visit
community is more than a place, it's at the Heart
Our Community Curriculum. of what brings us together. We remain steadfast in
our commitment to give back to the communities
We remain dedicated to serving our communities in unique we serve, especially in a time of need.
ways that are true to Southwest. We recognize there s more work
to be done as we respond to and recover from the pandemic,
—Laurie Barnett, Managing Director
but together, we can continue caring for our neighbors in need. of Communications and Outreach
Because at Southwest, we believe community is more than a
place—it's at the Heart of what brings us together.
In 2020, we donated a total of $1 million to 101 local charities

focused on serving children, their families, and communities,
and providing relief from COVID-19 impacts.

Community Outreach Initiatives UN SDG

Alignment
GRI Index
413-1
in Our Communities
For more than two decades, Southwest s Community Outreach e orts have centered on
developing and nurturing authentic relationships around our network with organizations
committed to building resilient communities. We believe in championing causes that matter
most because we are more than an airline, we are your neighbor. And it s important to us
that our contributions mirror the diverse communities we serve. With the increased dialogue
around racial injustice, we have been able to lean on longstanding relationships with several
organizations to help us as we listen, learn, and act.
Southwest has proudly supported the National Urban League

and 100 Black Men of America in their e orts to promote
education, mentorship, and leadership development as they lift We believe in championing causes that
up Black communities all across the country. In June, Southwest matter most because we are more than
donated $500,000 through the Southwest Airlines Foundation
(a corporate-advised fund within the Silicon Valley Community
an airline, we are your neighbor.
Foundation) to these important organizations.15
Our donation will be used to support long-term, sustainable As our Chairman and CEO Gary Kelly recently shared,
change through national strategies and local initiatives centered We stand alongside our Black, Asian American, and Paci c
on their impactful programs. Both organizations conduct crucial Islander Employees, Customers, and communities whose voices
work that help create a catalyst for change and encourage Black will no longer be silenced. There is plenty of work to be done,
men and women to realize their highest potential. Our donation but we are committed to doing our part to drive change.
was in addition to our continued local contributions. We also
established a separate donation page to provide an avenue for
our Customers and Employees to o er additional support to these
two organizations.

People Data Table

2020 2019 2018 2017 2016
Employees
Active, full-time equivalent Employees at year-end 16 56,537 60,767 58,803 56,110 53,536
Employees By Gender
Active, full-time equivalent Employees at year-end, 58 % Male 57 % Male 57 % Male 58 % Male 57 % Male
by gender17 42 % Female 43 % Female 43 % Female 42 % Female 43 % Female
New Hires during the reporting period, by age and gender: 215 Male 1,093 Male 1,450 Male 1,223 Male Not Reported
under 30 years old 133 Female 787 Female 1,038 Female 940 Female
New Hires during the reporting period, by age and gender: 254 Male 1,530 Male 1,871 Male 1,831 Male Not Reported
30-50 years old 235 Female 1,014 Female 1,092 Female 996 Female
New Hires during the reporting period, by age and gender: 67 Male 379 Male 444 Male 405 Male Not Reported
over 50 years old 73 Female 422 Female 439 Female 448 Female
Employees By Ethnicity/Race18
American Indian or Alaska Native 0.7 % Not Reported Not Reported Not Reported Not Reported
Asian 3.9 % Not Reported Not Reported Not Reported Not Reported
Black or African American 16.3 % Not Reported Not Reported Not Reported Not Reported
Hispanic or Latino 14.8 % Not Reported Not Reported Not Reported Not Reported
Native Hawaiian or Other Pacific Islander 1.5 % Not Reported Not Reported Not Reported Not Reported
Two or More Races 2.6 % Not Reported Not Reported Not Reported Not Reported
White 60.2 % Not Reported Not Reported Not Reported Not Reported
Employees By Division19
Flight 24,568 25,864 24,924 23,561 22,133
44 % 43 % 42 % 42 % 41 %
Maintenance 3,012 3,233 3,021 2,960 2,951

5% 5% 5% 5% 6%
Ground, Customer, and Fleet Services 19,457 21,013 20,800 20,175 19,497
34 % 35 % 36 % 36 % 36 %
Administrative (Technology, Management, Finance, 9,500 10,657 10,058 9,414 8,955

Marketing, Clerical Personnel) 17 % 17 % 17 % 17 % 17 %
Benefits
Active and inactive Employees who participate More than More than More than More than More than
in benefits program 59,700 64,800 62,800 59,800 56,300
Employee benefit programs excluding 401(k) More than More than More than More than More than
and ProfitSharing Plans and share-based $ 1.3 billion $ 1.3 billion $ 1.2 billion $ 1.1 billion $ 1.0 billion
compensation (accrued) 20
401(k) savings plan participation 92 % 91 % 91 % 91 % 92 %
ProfitSharing Plan participation All eligible All eligible All eligible All eligible All eligible
Employees Employees Employees Employees Employees
Company contributions to 401(k) and ProfitSharing Plans $ 561 million $ 1.2 billion $ 1.0 billion $ 1.0 billion $ 937 million

People Data Table

2020 2019 2018 2017 2016
Training
Pilot hours 252,030 482,473 543,360 582,535 457,563
Flight Attendant hours 263,811 427,705 442,807 354,942 443,295
Maintenance hours 185,148 165,630 166,324 140,068 147,312
Customer Support and Services hours 63,841 134,783 181,670 255,106 175,447
Ground Operations hours 507,164 887,627 737,256 740,285 730,088
Safety and Security hours (all Employees) More than More than More than More than More than
320,000 780,000 820,000 660,000 811,000
Customers
External Customer commendations More than More than More than More than More than
34,000 88,000 96,000 107,000 105,000
Ratio of External Customer commendations 3:1 3:1 3:1 4:1 3:1

to personnel complaints
American Customer Satisfaction Index (ACSI) 79 79 80 80 80
U.S. Department of Transportation (DOT) Customer Satisfaction 2.64 0.33 0.36 0.47 0.47
rating (consumer complaints per 100,000 enplanements)21
Percentage of reported flight operations arriving ontime 86.0 80.2 79.2 78.7 80.8
Number of mishandled bags reported 2.68 4.40 4.68 4.50 Not Reported
per 1,000 enplaned bags
Passengers denied boarding per 10,000 Passengers 0.06 0.19 0.15 0.53 0.99
Communities
Donation requests received Companywide 5,872 18,456 17,243 17,032 15,237
Tickets donated 20,008 45,301 50,060 50,586 53,291
Total monetary donations $ 707,672 $ 5,843,946 $ 4,581,579 $ 13,390,938 $ 3,280,307
Total corporate monetary, in-kind, and ticket donations $ 10,190,071 $ 24,306,076 $ 25,235,753 $ 37,043,294 $ 25,324,794
Monies raised through official Southwest $ 1,300,000 $ 800,000 $ 950,000 $ 500,000 $ 675,000
fundraising efforts
Employee volunteer hours Nearly More than Nearly More than Nearly
75,000 200,000 190,000 180,000 150,000
Value of Employee volunteer hours22 More than More than More than More than More than
$ 2,000,000 $ 5,800,000 $ 4,800,000 $ 4,300,000 $ 3,500,000
Social Management Approach

Employees represented by unions Approximately Approximately Approximately Approximately Approximately
83 % 83 % 83 % 83 % 83 %
Employee human rights training hours More than More than More than More than More than
61,000 53,500 44,000 39,000 51,000
Employees trained on human rights 56.2 % 48.9 % 43.9 % 40.4 % 44.4 %
Employees and business associates who acknowledged More than More than More than More than More than
the Code of Ethics 63,000 64,000 64,000 63,000 59,000

Financial Preparedness
—Our Enduring Strength
We achieved our 47th consecutive year of pro tability in 2019 a record unmatched in U.S. aviation
history. By managing in the good times to be prepared for the bad times, we entered the COVID-19
pandemic prepared with the U.S. airline industry s strongest balance sheet and most successful
business model. We have a robust network of point-to-point service, with a strong presence across
top leisure and business markets. While the impact of the COVID-19 pandemic presented an
unprecedented challenge, we believe that we are well-positioned to e ectively manage through
the challenging environment and thrive post-pandemic.
#1 in Customer Global New Destinations

Satisfaction Distribution System Strengthened route network with launch
Maintained #1 Marketing Carrier in Launched global distribution system (GDS) of service to six new destinations in 2020,
Customer Satisfaction per the U.S. access for business travelers through and have, as of April 27, 2021, opened or
Department of Transportation (DOT) data23 partnerships with Travelport and Amadeus; announced our intention to serve an
entered into an agreement with Sabre additional 13 airports in 202124
Economic Performance p30 Growing Our Robust Network p36 Performance Data Table p39

KEY TOPIC
STORIES
Economic Performance 2020 Financial Results
The COVID-19 pandemic had a signi cant year-over-year negative impact on travel
demand and bookings in 2020, resulting in our rst annual net loss since 1972. Reporting on Business
Performance
We remain focused on emerging from this pandemic with the U.S. airline industry s
strongest balance sheet and business model to thrive post-pandemic.
Ten-Year Summary
2020 Financial Results UN SDG

Alignment
GRI Index
201-1
201-4
We entered 2020 positioned for a strong year. We were well-prepared with signi cant
nancial strength, and we started the year strong with solid net income growth, year-over-year,
in January and February 2020, combined. We also began 2020 with outstanding operational
performance, exceptional ontime performance, the highest level of baggage reliability in our
history, and industry-leading Customer Service.25
In late February 2020, we began to experience a precipitous capacity decreased approximately 34%, year-over-year.
drop in travel demand and bookings due to the COVID-19 We suspended substantially all hiring; canceled or deferred
pandemic. The situation escalated dramatically, and by hundreds of capital spending projects; modi ed vendor
mid-March 2020, trip cancellations began to exceed new and supplier payment terms; and aggressively evaluated all
bookings. We experienced our largest monthly decline in non-essential spending. We implemented voluntary separation
operating revenues in April 2020, down 92%, year-over-year, and extended leave programs to better align sta ng levels
when the pandemic spread and shelter-in-place orders and and overhead costs to reduced ight schedules. Approximately
similar restrictions were implemented throughout the country. 15,000 Southwest Warriors, or 25% of our workforce, participated
in one of these voluntary programs, which reduced our annual
We took swift action to address the unprecedented decline in 2020 salaries, wages, and bene ts expense by approximately
travel and revenue by signi cantly reducing available seat miles $565 million. In total, we reduced annual 2020 cash outlays by
(ASMs, or capacity)26, costs, and cash spending. Annual 2020 approximately $8 billion, compared with original plans.

We quickly bolstered liquidity, raising approximately $18.9 billion connect via Airline Tari Publishing Company s (ATPCO) New
in capital, net of transaction fees, in 2020, including $13.4 billion Distribution Capability (NDC) Exchange and existing SWABIZ
in debt issuances and sale-leaseback transactions, $2.2 billion options, with the goal of distributing our everyday low fares
through a common stock o ering, and $3.4 billion of Payroll to more corporate travelers through their preferred channel.
Support Program (PSP) proceeds under the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act). We ended Our Founder and Chairman Emeritus, Herb Kelleher, always
2020 with total liquidity of $14.3 billion, consisting of cash and reminded us: we manage in good times, so that all of us will be
short-term investments of $13.3 billion and a fully available protected from bad times; that is why keeping costs low and spirits
secured revolving credit facility of $1 billion. As of Dec. 31, 2020, high at all times is so very important. By living Herb s basic credo,
our unencumbered assets were worth approximately $12 billion, we came into 2020 well-prepared with the U.S. airline industry s
including $10 billion in aircraft and $2 billion in non-aircraft strongest balance sheet and most successful business model—
assets such as spare engines, ground equipment, and real estate. with low costs that enabled low fares across a robust network of
In addition, we have signi cant value from our Rapid Rewards point-to-point service and a strong presence in top leisure and
loyalty program. business markets. Even with our preparedness and swift response
to the pandemic in 2020, we are not standing still. In addition
One key milestone in 2020 was the launch of our global to launching our participation in GDS, we are aggressively
distribution system (GDS) initiative. We are now at industry- pursuing new revenue streams by adding new airports to our
standard processes with Amadeus GDS platform and Travelport s route network. We remain steadfast in managing costs and cash
GDS platforms: Apollo, Worldspan, and Galileo, allowing corporate spending, and we are focused on maintaining signi cant liquidity.
travel managers the ability to book, change, cancel, and modify Our primary nancial goals for 2021 are to preserve the strength
reservations. This industry-standard process enables the Airline of our balance sheet and investment-grade credit rating; arrest
Reporting Corporation to handle the reporting and settlement cash operating losses; and achieve and sustain break-even or
of tickets booked through the GDS platforms. In December better cash ow and earnings as the airline business recovers.
2020, we reached a full-participation GDS agreement with The pandemic persists and travel demand remains depressed,
Sabre, planned to launch in 2021. The enhancement of our but we celebrate our 50th year of service in 2021 with renewed
GDS channel strategy complements our expansion of direct hope and optimism about the future of Southwest.27
Our Founder and Chairman Emeritus, Herb Kelleher, always reminded us:
we manage in good times, so that all of us will be protected from bad times;
that is why keeping costs low and spirits high at all times is so very important.

Reporting on Business Performance UN SDG

Alignment
GRI Index
102-2
Southwest s Annual Report to Shareholders includes an opening letter to Shareholders from 102-5
102-6
Gary Kelly, Chairman of the Board and Chief Executive O cer, and provides an overview 102-7
102-10
of our business and nancial performance in 2020. The Annual Report also includes a 201-2
discussion of our business, risks, Management s Discussion and Analysis of Southwest s 201-3
201-4
Financial Condition and Results of Operations, and audited nancial statements.
Read our 2020 Annual Report here.
Southwest s Proxy Statement is provided to Shareholders in advance of the Annual Meeting of Shareholders. It contains Shareholder
proposals as well as Executive compensation information.
View the complete 2021 Proxy Statement here.
The COVID-19 pandemic had a devastating impact on our 2020 nancial performance, but we remain laser-focused on managing
through this challenging time, and we intend to thrive post-pandemic.28
Our 2020 Performance: At a Glance
59.7%
year-over-year
decrease in
$3.5 billion
annual net loss,
$1.1 billion
net cash used
in operations
718
Boeing 737 aircraft31
excluding special items29
operating revenue
Load factor of Year-end cash 107
Destinations served,32
52.4%
and short-term
investments of 56,000+ as of April 27, 2021, we have
opened or announced our
$13.3 billion Full-time Employees30
intention to serve an
additional 13 airports
in 2021

Ten-Year Summary UN SDG

Alignment
GRI Index
201-1
Our 10-Year Summary shows consecutive years of pro tability prior to the COVID-19 pandemic.
In the decade leading up to 2020, we signi cantly increased our cities served, further
strengthening our robust network of point-to-point service. We increased our capacity and eet,
introduced near-international service, and added thousands of Employees to our Southwest
Family. We worked diligently to grow earnings per share and returns to Shareholders.
The pandemic had a devastating impact on our 2020 nancial performance, but we remain
laser-focused on managing through this challenging time, and we intend to thrive
post-pandemic.33

Ten-Year Summary
(Dollars in millions except per share amounts, unaudited)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Selected Consolidated Financial Data

Operating revenues:
Passenger $ 7,665 $ 20,776 $ 20,455 $ 19,763 $ 19,068 $ 18,299 $ 17,658 $ 16,721 $ 16,093 $ 14,754
Freight 161 172 175 173 171 179 175 164 160 139
Special revenue adjustment - - - - - 172 - - - -
Other 1,222 1,480 1,335 1,210 1,050 1,170 772 814 835 765
Total operating revenues 9,048 22,428 21,965 21,146 20,289 19,820 18,605 17,699 17,088 15,658
Operating expenses 12,864 19,471 18,759 17,739 16,767 15,821 16,437 16,478 16,502 15,074
Operating income (loss) (3,816) 2,957 3,206 3,407 3,522 3,999 2,168 1,221 586 584
Other expenses (income), net 440 - 42 142 72 520 352 12 (99) 261
Income (loss) before (4,256) 2,957 3,164 3,265 3,450 3,479 1,816 1,209 685 323
income taxes
Provision (benefit)
(1,182) 657 699 (92) 1,267 1,298 680 455 264 145
for income taxes
Net income (loss) $ (3,074) $ 2,300 $ 2,465 $ 3,357 $ 2,183 $ 2,181 $ 1,136 $ 754 $ 421 $ 178
Net income (loss) $ (5.44) $ 4.28 $ 4.30 $ 5.58 $ 3.48 $ 3.30 $ 1.65 $ 1.06 $ 0.56 $ 0.23
per share, basic
Net income (loss) per share, $ (5.44) $ 4.27 $ 4.29 $ 5.57 $ 3.45 $ 3.27 $ 1.64 $ 1.05 $ 0.56 $ 0.23
diluted
Cash dividends per

$ 0.1800 $ 0.7000 $ 0.6050 $ 0.4750 $ 0.3750 $ 0.2850 $ 0.2200 $ 0.1300 $ 0.0345 $ 0.0180
common share
Total assets at period-end $ 34,588 $ 25,895 $ 26,243 $ 25,110 $ 23,286 $ 21,312 $ 19,723 $ 19,177 $ 18,350 $ 17,805
Long-term obligations
$ 10,111 $ 1,846 $ 2,771 $ 3,320 $ 2,821 $ 2,541 $ 2,434 $ 2,191 $ 2,883 $ 3,107
at period-end
Stockholders equity
at period-end $ 8,876 $ 9,832 $ 9,853 $ 9,641 $ 7,784 $ 7,358 $ 6,775 $ 7,336 $ 6,992 $ 6,877

Ten-Year Summary
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Consolidated Financial Ratios

Return on average total assets (10.2) % 8.8 % 9.6 % 13.9 % 9.8 % 10.6 % 5.8 % 4.0 % 2.3 % 1.1 %
Operating margin (42.2) % 13.2 % 14.6 % 16.1 % 17.4 % 20.2 % 11.7 % 6.9 % 3.4 % 3.7 %
Net margin (34.0) % 10.3 % 11.2 % 15.9 % 10.8 % 11.0 % 6.1 % 4.3 % 2.5 % 1.1 %
Enplaned passengers (000s) 67,785 162,681 163,606 157,677 151,740 144,575 135,767 133,155 133,978 127,551
RPMs (in millions)34 54,221 131,345 133,322 129,041 124,798 117,500 108,035 104,348 102,875 97,583
ASMs (in millions)35 103,456 157,254 159,795 153,811 148,522 140,501 131,004 130,344 128,137 120,579
Passenger load factor36 52.4 % 83.5 % 83.4 % 83.9 % 84.0 % 83.6 % 82.5 % 80.1 % 80.3 % 80.9 %
Average length of passenger

1,002 980 988 991 1,001 994 978 966 941 939
haul (miles)
Average stage length (miles)37 743 748 757 754 760 750 721 703 693 679
Aircraft utilization
8:52 11:10 11:10 11:11 11:08 11:13 10:54 10:45 10:55 11:10
(hours and minutes per day)
Trips flown 897,540 1,367,727 1,375,030 1,347,893 1,311,149 1,267,358 1,255,502 1,312,785 1,361,558 1,317,977
Average passenger fare 38 $ 141.72 $ 154.98 $ 151.64 $ 151.73 $ 152.89 $ 154.85 $ 159.80 $ 154.72 $ 147.17 $ 141.90
Passenger revenue yield

14.14 ¢ 15.82 ¢ 15.34 ¢ 15.32 ¢ 15.28 ¢ 15.57 ¢ 16.34 ¢ 16.02 ¢ 15.64 ¢ 15.12 ¢
per RPM39
Operating revenue yield

8.75 ¢ 14.26 ¢ 13.75 ¢ 13.75 ¢ 13.66 ¢ 13.98 ¢ 14.20 ¢ 13.58 ¢ 13.34 ¢ 12.99 ¢
per ASM40
Operating expenses per ASM41 12.43 ¢ 12.38 ¢ 11.74 ¢ 11.53 ¢ 11.29 ¢ 11.26 ¢ 12.55 ¢ 12.64 ¢ 12.88 ¢ 12.50 ¢
Operating expenses
10.65 ¢ 9.62 ¢ 8.85 ¢ 8.88 ¢ 8.73 ¢ 8.60 ¢ 8.46 ¢ 8.17 ¢ 8.07 ¢ 7.73 ¢
per ASM, excluding fuel
Fuel cost per gallon,

$ 1.45 $ 2.09 $ 2.20 $ 1.99 $ 1.90 $ 1.96 $ 2.97 $ 3.19 $ 3.32 $ 3.25
including tax
Fuel consumed, in gallons

1,273 2,077 2,094 2,045 1,996 1,901 1,801 1,818 1,847 1,764
(millions)
Active, full-time equivalent

56,537 60,767 58,803 56,110 53,536 49,583 46,278 44,831 45,861 45,392
Employees at year-end42
Aircraft at year-end43 718 747 750 706 723 704 665 681 694 698
Average age of fleet (years) 12 12 11 11 12 12 12 11 11 11

KEY TOPIC
STORIES
Growing Our Robust Network Expanding
Our Network
During 2020, we launched service to six new destinations and have, as of April 27, 2021,
opened or announced our intention to serve an additional 13 airports in 2021. We
Our Fleet
are utilizing idle aircraft and Employees, leveraging additional airports in or near cities
where our Customer base is large, and adding easier access to popular leisure-oriented
destinations from across our domestic-focused, point-to-point network.
Expanding Our Network GRI Index

102-6
Southwest o ers friendly, reliable, and low-cost air travel. Southwest is the leader in 23 of the 102-7
201-1
top 50 U.S. metro areas,44,45 serving all of the top 100 domestic origin and destination pairs, 203-2
including co-terminal airports.46,47
With a point-to-point network allowing for more direct routing, International Airport; Colorado Springs Municipal Airport;
approximately 72% of our Customers ew nonstop during Savannah/Hilton Head International Airport; Houston s George
2020 compared with approximately 77% in 2019, with the Bush Intercontinental Airport; Jackson-Medgar Wiley Evers
year-over-year decrease due to less capacity and nonstop ights International Airport in Miss.; Santa Barbara Airport in Calif.;
in 2020, all due to the pandemic. As of Dec. 31, 2020, we served Fresno Yosemite International Airport in Calif.; Destin-Fort Walton
667 nonstop city pairs, compared with 720 as of Dec. 31, 2019, Beach Airport in Fla.; Myrtle Beach International Airport in S.C.;
the most of any domestic airline in both years.48 Bozeman Yellowstone International Airport in Mont.; Eugene
Airport in Ore.; and Bellingham International Airport in Wash.
We were excited to add new airports to our route map during As we manage through the pandemic, we are pursuing additional
2020, by launching service to six new destinations: Hilo, Hawaii; revenue opportunities that utilize idle aircraft and Employees
Cozumel, Mexico; Miami, Fla.; Palm Springs, Calif.; Steamboat to provide Southwest s Legendary Customer Service to new,
Springs, Colo.; and Montrose (Telluride and Crested Butte), Colo. popular destinations. We are leveraging additional airports in or
We also have, as of April 27, 2021, opened or announced our near cities where our Customer base is large, along with adding
intention to commence service in 2021 to 13 additional airports: easier access to popular leisure-oriented destinations from across
Chicago O Hare International Airport; Sarasota Bradenton our domestic-focused, point-to-point network.49

System Map
SEATTLE/TACOMA
SPOKANE
PORTLAND
EUGENE v
PORTLAND
MANCHESTER
BOISE ROCHESTER ALBANY
MINNEAPOLIS/ BOSTON LOGAN
ST. PAUL PROVIDENCE
GRAND HARTFORD/SPRINGFIELD
RAPIDS BUFFALO/
NIAGARA FALLS LONG ISLAND/ISLIP
DETROIT
MILWAUKEE NEW YORK (LAGUARDIA)
RENO/TAHOE CHICAGO (O’HARE) i CLEVELAND
DES MOINES CHICAGO (MIDWAY)
SALT LAKE CITY PHILADELPHIA
SACRAMENTO PITTSBURGH
OAKLAND STEAMBOAT SPRINGS OMAHA BALTIMORE/WASHINGTON (BWI)
SAN FRANCISCO (SFO) (HAYDEN) COLUMBUS
INDIANAPOLIS WASHINGTON, D.C. (DULLES)
SAN JOSE WASHINGTON, D.C. (REAGAN NATIONAL)
DENVER
FRESNO iv KANSAS CITY ST. LOUIS CINCINNATI RICHMOND
ii
COLORADO SPRINGS
LOUISVILLE NORFOLK/VIRGINIA BEACH
LAS VEGAS MONTROSE
(TELLURIDE) WICHITA
SANTA BARBARA iii RALEIGH/DURHAM
BURBANK
LOS ANGELES ONTARIO NASHVILLE
ALBUQUERQUE CHARLOTTE
(LAX) ORANGE COUNTY TULSA
AMARILLO MEMPHIS GREENVILLE-SPARTANBURG
LONG BEACH PALM SPRINGS LITTLE ROCK
SAN DIEGO OKLAHOMA CITY
PHOENIX
LUBBOCK ATLANTA CHARLESTON
TUCSON
DALLAS (LOVE FIELD)
BIRMINGHAM
For up-to-date system information,
SAVANNAH ii
EL PASO including scheduled nonstop and
MIDLAND/ODESSA JACKSON v
connecting service for any given
PENSACOLA PANAMA CITY BEACH
JACKSONVILLE Southwest® city, please visit
AUSTIN HOUSTON
(INTERCONTINENTAL) iii NEW ORLEANS
Southwest.com® >Flight >Route Map.
HOUSTON (HOBBY) ORLANDO
SAN ANTONIO
TAMPA
i
SARASOTA/BRADENTON
CORPUS CHRISTI
FT. MYERS/NAPLES WEST PALM BEACH
FT. LAUDERDALE (MIAMI AREA)
HARLINGEN/SOUTH PADRE ISLAND MIAMI
NASSAU vi
PROVIDENCIALES, TURKS & CAICOS vi

CABO SAN LUCAS/LOS CABOS
SAN JUAN
HAVANA i
PUNTA CANA
CANCUN
PUERTO VALLARTA COZUMELvi GRAND CAYMAN vi MONTEGO BAY
LIHUE, KAUAI
HONOLULU, OAHU
KAHULUI, MAUI
BELIZE CITY vi ARUBA i
HILO, ISLAND OF HAWAII

KONA, ISLAND OF HAWAII
In 2020, Southwest added service to Miami, Palm Springs, Telluride, Steamboat Springs, Hilo, and Cozumel.
In 2020, service to these airports were announced to launch in 2021.
LIBERIAvi
SAN JOSÉ vi
i Service to Chicago (O’Hare) and Sarasota/Bradenton began on Feb. 14, 2021.
ii Service to Savannah, Georgia and Colorado Springs began on March 11, 2021.
iii Service to Houston (Intercontinental) and Santa Barbara began on April 12, 2021.
iv Service to Fresno began on Apr. 25, 2021.
v Southwest has announced an intention to add service in Jackson and Eugene on June 6, 2021.
vi Service remained temporarily suspended as of Dec. 31, 2020, due to the COVID-19 pandemic.
Capacity by Region Top 10 Airports

(as of Dec. 31, 2020) (daily departures on December 14, 2020)
Desert/Mountain 20%
1 DEN: 144 2 MDW: 120 3 BWI: 118 4 DAL: 94
Southeast 18% Denver Chicago Midway Baltimore- Dallas Love Field
West Coast 17% Washington
Midwest 16%
5 PHX: 94 6 HOU: 89 7 LAS: 85 8 BNA: 67
South Central 15% Phoenix Houston Hobby Las Vegas Nashville
Northeast 12%
International 1%
9 ATL: 57 10 MCO: 55
Puerto Rico 1%
Atlanta Orlando

Our Fleet GRI Index

102-7
We ended the year with 718 Boeing 737 aircraft in our eet, the largest
Boeing eet in the world.50
On March 13, 2019, the Federal Aviation Administration (FAA) At Southwest, we only operate Boeing 737 aircraft, and
issued an emergency order for all U.S. airlines to ground all our Pilots are highly trained and experienced at ying the
Boeing 737 MAX (MAX) aircraft. On Nov. 18, 2020, the FAA issued aircraft. Before the MAX was grounded, Southwest Pilots
o cial requirements to enable airlines to return the MAX to ew almost 40,000 ights on the aircraft, which represents
service. We satis ed applicable FAA requirements by modifying more than 89,000 ight hours. Prior to returning the MAX to
certain operating procedures, implementing enhanced Pilot revenue service, active Southwest Pilots completed additional
training requirements, installing FAA-approved ight control FAA-required ight training in one of our nine 737 MAX 8
software updates, and completing other required maintenance simulators and completed additional FAA-required computer-
tasks speci c to the MAX aircraft prior to returning the MAX to based training covering MAX procedures. We also required
revenue service on March 11, 2021. active Pilots to retake our original 737 MAX 8 computer-
based di erences training as a refresher to complement the
Our top priority is, and always will be, the Safety of our FAA-required training. Additionally, we conducted more than
Employees and Customers. Our Southwest Flight Operations 200 readiness ights on our MAX eet and completed the
Leadership Team has reviewed and expressed con dence in software updates and thousands of hours of work and inspections
the MAX software and training updates. Additionally, aviation before any of our Customers once again boarded a Southwest
regulators from countries around the world have reviewed the 737 MAX 8.
changes to the aircraft and the FAA s new requirements.
After completing each of these important milestones, we were
thrilled to return the MAX to revenue service on March 11, 2021.
We remain con dent in the MAX, and it is our growth aircraft for
Fleet Composition the future. As compared with the prior generation of 737 aircraft,
the MAX provides increased range, the Boeing Sky Interior
(similar to the 737-800s), improved ight deck capabilities, a
737-800
quieter engine, and is approximately 14% more fuel-e cient.52
207 Southwest recently restructured our delivery schedule for MAX
planes
aircraft with The Boeing Company, including the selection of
51 the 737 MAX 7 aircraft as the successor aircraft to its 737-700
737-700
718
Fleet total
737 MAX 8
model. Southwest added 100 rm orders for 737 MAX 7 aircraft,
in addition to adding 155 MAX options through 2031. This
agreement underscore s Southwest s commitment to continued
modernization of our eet with more fuel-e cient and climate-
470 41 friendly aircraft.
planes planes

Performance Data Table

Consolidated Highlights
(Dollars in millions except per share amounts, unaudited)
Year ended Dec. 31, 2020 2019 Change
Operating revenues $ 9,048 $ 22,428 (59.7) %

Operating expenses $ 12,864 $ 19,471 (33.9) %
Operating income (loss) $ (3,816) $ 2,957 n.m.
Operating margin (42.2) % 13.2 % (55.4) pts.
Net income (loss) $ (3,074) $ 2,300 n.m.
Net margin (34.0) % 10.3 % (44.3) pts.
Net income (loss) per share - basic $ (5.44) $ 4.28 n.m.
Net income (loss) per share - diluted $ (5.44) $ 4.27 n.m.
Stockholders' equity $ 8,876 $ 9,832 (9.7) %
Stockholders' equity per common share outstanding $ 15.03 $ 18.94 (20.6) %
Revenue passengers carried (000s) 54,088 134,056 (59.7) %
Revenue passenger miles (RPMs) (in millions)53 54,221 131,345 (58.7) %
Available seat miles (ASMs) (in millions)54 103,456 157,254 (34.2) %
Passenger load factor55 52.4 % 83.5 % (31.1) pts.
Passenger revenue yield per RPM (cents)56 14.14 15.82 (10.6) %
57
Operating revenue yield per ASM (cents) 8.75 14.26 (38.6) %
58
Operating expenses per ASM (cents) 12.43 12.38 0.4 %
59
Aircraft at end of period 718 747 (3.9) %
Average age of fleet 12 12 –
60
Active, full-time equivalent Employees at year-end 56,537 60,767 (7.0) %
Reconciliation of Reported Amounts to Non-GAAP Items61

(Dollars in millions, unaudited)
Year ended Dec. 31, 2020
Net loss, as reported $ (3,074)
Deduct: Payroll support and voluntary Employee programs, net (967)
Deduct: Contracts settling in the current period, but for which losses were reclassified from Accumulated Other Comprehensive Income (AOCI) (25)
Deduct: Gain from aircraft sale-leaseback transactions (222)
Add: Impairment of long-lived assets 32
Add: Mark-to-market impact from fuel contracts settling in current and future periods 40
Add: Mark-to-market impact from interest rate swap agreements 28
Add: Post-retirement curtailment charge 53
Add: Net loss tax impact of special items, excluding GAAP to Non-GAAP tax rate difference62 376
Add: GAAP to Non-GAAP tax rate difference63 247
Net loss, excluding special items $ (3,512)

Attending
to the Planet
The size and scale of our operation presents us with an exciting opportunity. The COVID-19
pandemic reduced our operations during 2020, but during 2019 s peak travel season, Southwest
operated more than 4,000 weekday departures. Even small, incremental improvements in energy
e ciency, waste reduction, or conservation are multiplied thousands of times so small changes
add up quickly! By acting as good environmental stewards across our entire operation, we can take
meaningful steps to reduce our environmental impact and preserve the Planet one ight at a time.
Nearly 140,000 More than $630 million Reduced CO2e

pounds repurposed in Smart Investments
In 2020, we repurposed Southwest has invested more than In 2020, 1.29M gallons were saved for a
nearly 140,000 pounds $630 million in fuel efficiency 12,632MT reduction in CO2e by using
of leather seat covers improvements since 2002 our Central Monitoring System
Environmental Stewardship p41 Energy p43 Waste p47 Planet Data Table p49

*Filmed pre-COVID-19
KEY TOPIC
STORIES
Environmental Stewardship Strengthening Our
Commitment to
We seek to promote a better, healthier Planet, but we recognize we can t accomplish the Environment
it alone. Protecting our Planet for generations to come is going to require a joint e ort
from individuals, communities, and businesses—all working together to do their part.
We seek to team up with other environmentally minded organizations to help us amplify
our impact and make the Planet a better, more sustainable place.64
Strengthening Our Commitment UN SDG

Alignment
GRI Index
302-1
to the Environment 302-2
302-3
302-4
Our Purpose at Southwest is to connect People to what s important in their lives through 302-5
SASB Index
friendly, reliable, and low-cost air travel. It serves as our Company s Heartbeat and keeps 305-1
TR-AL-110a.2 305-2
us mindful of our impact on those around us. Living out our Purpose means doing things 305-3
305-4
right across our operation: serving Customers with a Servant s Heart, championing 305-5
communities where we live and work, and protecting and respecting our Planet for 305-6
305-7
future generations to come.
For years, we have evaluated and executed ways we can improve • Returning to service the Boeing 737 MAX 8, our most
environmental stewardship across our airline. We have e orts in fuel-e cient aircraft
place to reduce emissions intensity, manage waste, use fuel more
• Expanding our Boeing order book through 2031, including
e ciently, and repurpose materials to minimize the impact on
100 additional Boeing MAX 7 aircraft, which are expected to
land lls. E orts include:
replace less fuel-e cient Boeing 737-700 aircraft65
• Partnering with di erent organizations including Red Rock
• Continuing the ongoing work of our Repurpose with Purpose
Biofuels and the U.S. Department of Energy's National
program which diverts materials and items intended for
Renewable Energy Laboratory (NREL) to support sustainable
land lls while generating social and economic opportunities
aviation fuel (SAF) development and production
for communities

We recognize global citizenship is not a xed destination;

no company ever truly arrives as an environmental steward.
True citizenship demands ongoing iteration and improvement
as circumstances in the world around us change and a ect our
business. That s why in early 2020, we further concentrated our
e ort to nd new ways to reduce our environmental footprint.
This includes an intention to increase the usage of sustainable
aviation fuel, introduce carbon o sets where they make sense, In harmony with these e orts, Southwest also continues to align
and improve our recycling e orts in ight and on the ground.66 with A4A in the trade association s strategies to address the
Throughout 2020, we brought together Employees from across impacts of aviation on the climate. This includes aligning with
the Company who spent time collectively reviewing existing plans industry-wide goals for emission reduction and building our own
while developing new ideas to strengthen our commitment to plans for achieving carbon neutrality by 2050.67
the environment:
• Focusing on a goal of carbon neutrality for our emissions by The carbon neutral goal is an ambitious one, and it will take all
2050. To accomplish this, we re looking to incorporate more airlines, government, airframe and engine manufacturers, and
sustainable aviation fuel partners and introduce carbon the oil and gas industry working together to achieve. It will take
o setting into our operation the advancement of technology in engine and airframe design;
the government s commitment to a modernized air tra c
• Purchasing renewable energy certi cates (RECs) equal to the management system and needed infrastructure improvements;
electricity consumption at our Headquarters campus, while support and incentives for a ordable and scaled SAF development
working to develop a comprehensive, longer-term renewable and production; and airlines working to modernize eets for
energy strategy for our corporate facilities further fuel e ciency and reduced emissions.
• Continuing our work with a variety of organizations, nonpro ts,
We have a responsibility to the environment and that s something
and government entities, including Airlines for America
we take seriously. At Southwest, our Heart doesn t just give back,
(A4A), whose work complements our e orts to improve our
it gives forward, and we recognize conservation can be more
environmental sustainability
impactful when we all work together for a more sustainable
• We will remain committed to improving our environmental future. Because the People we serve and the places we call home
footprint at our owned facilities and creating a sustainable are more than just parts of our operation they re at the Heart of
in ight experience for our Customers. We will continue to who we are.
explore repurposing and upcycling options for items including
aircraft seat leather
• We will invite individual and Corporate Customers to join

the e ort to show kindness to our Planet. Whether through
volunteer opportunities or purchasing carbon o sets for travel,
we want to provide options where People not only can buy-in
philosophically, but do their part
“Doing the right thing is about being a good

steward of the environment. It s a win-win:
what s good for our business is also good for
our Planet. We re proud of our environmental
accomplishments and we re ready to do more.
At Southwest, our Heart doesn’t just Establishing a goal to be carbon neutral by 2050
give back, it gives forward, and we is an excellent and logical next step, and we re
excited to continue our journey toward increased
recognize conservation can be more environmental sustainability.”
impactful when we all work together
for a more sustainable future. —Tom Nealon, President Southwest Airlines

KEY TOPIC
STORIES
Energy Building Energy
Conserving energy is good for everyone. It s good for our business we save money on
fuel and electricity. It s good for our Customers it helps us keep their fares low. And by Fuel E ciency
and Greenhouse
allowing us to use natural resources more e ciently, it s great for our Planet. In our
Gas Emissions
opinion, nding new ways to conserve energy isn t just a smart choice; it s an obvious one!
Building Energy UN SDG

Alignment
GRI Index
302-4
302-5
When the majority of our Corporate Campus-based Employees began working remotely
as a result of COVID-19 precautions, our Corporate Facilities Team made immediate
changes to the building operations. This included turning o air conditioning equipment,
vending machines, freezers/refrigerators, and interior lights in unoccupied areas.
This Team also balanced the proper amount of air conditioning equipment operating
for the number of People and Teams who still reported to campus.
We ventilate every area of the building daily, even the unoccupied From the beginning, we followed the U.S. Centers for Disease
areas. At night, we stagger the start time for air conditioning Control and Prevention (CDC) and The American Society of
equipment in the areas that are unoccupied during the day. Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)
By ventilating these areas for a few hours each night, we maintain guidelines to ventilate the buildings as much as possible.
a healthy building. This does use energy but we chose to do This meant eliminating the Demand Controlled Ventilation
this at night when the heat loads in the building are lower. strategy, which is an energy savings strategy that allows for the
By staggering the start times throughout the night, we proper amount of outside air ventilation for any given indoor
minimize our total energy footprint. environment condition. We opened up the outside air intake as
much as possible on all of our equipment. This new ventilation
Along with the energy savings measure that this Team strategy was implemented for the health of all Employees
implemented, we also had to address COVID-19. working on campus.

Fuel E ciency and UN SDG

Alignment
GRI Index
302-1
Greenhouse Gas Emissions 302-2

302-3
302-4
Jet fuel is our largest energy source. As a result, it is one of our largest expenses and our 305-1
SASB Index 305-2
single greatest source of emissions. We are always looking for opportunities to increase TR-AL-110a.1 305-4
fuel e ciency and lower our greenhouse gas emissions. TR-AL-110a.2 305-5
Fuel E ciency speci c to the MAX aircraft. Following more than 200 readiness
ights completed over several months, the MAX was returned to
Because of the direct relationship between our fuel consumption revenue service on March 11, 2021. The MAX 8 aircraft are 14%
and the cost associated with that consumption, we are more fuel e cient than our 737-800 aircraft, and their return to
self-motivated in the pursuit of multiple fuel e ciency initiatives. service is a welcome addition to our e orts to operate e ciently.
These initiatives help us to minimize fuel consumption and Southwest is investing over $12 billion in rm aircraft orders
emissions, as well as maintain a low-cost advantage in the for the Boeing 737 MAX to improve fuel e ciency and reduce
airline industry. Since 2002, Southwest has invested more than carbon emissions.
$630 million in fuel e ciency improvements, excluding new
aircraft purchases. These initiatives include routinely performing In 2020, we experienced a year-over-year fuel e ciency
engine washes, utilizing ground electric power while aircraft improvement of 7.4% when measured in available seat miles
are parked at airport gates, and reducing ground idle speeds for (ASMs)68 per gallon of jet fuel consumed. This improvement
aircraft in our eet. was in part the result of operating fewer of our oldest, least
fuel-e cient aircraft as a result of capacity reductions due to
While we continued to invest in fuel e ciency improvements, the COVID-19 pandemic. In our One Report we have historically
in March 2019, we were required to remove the Boeing 737 reported our fuel e ciency on a revenue ton mile (RTM)69 per
MAX 8, our most fuel e cient aircraft, from service. On Nov. 18, gallon of jet fuel consumed basis. The RTMs/gallon e ciency
2020, the Federal Aviation Administration (FAA) issued o cial metric relies on both the e ciency of our eet and the revenue
requirements to enable airlines to return the MAX to service. tra c carried. The COVID-19 pandemic depressed the demand
We satis ed applicable FAA requirements by modifying certain for air travel, and we experienced load factors70 that were
operating procedures, implementing enhanced Pilot training considerably lower than historical levels. As travel demand
requirements, installing FAA-approved ight control software returns toward pre-pandemic levels, our fuel e ciency measured
updates, and completing other required maintenance tasks on a RTMs/gallon basis is expected to improve.71

2020 Incremental Jet Fuel Conservation
APU utilization
1.75 million gallons Fuel and flight planning
16 million gallons
Electronic flight bags
5,000
gallons
Greenhouse Gas Emissions 2020 Scope 1 Emissions Breakdown

To better understand our environmental impact and increase the Aircraft & Fuel
transparency of our operations, we have voluntarily tracked and Consumption
reported our greenhouse gas (GHG) emissions since 2009. 12,550,489
Our primary source of GHG emissions is the consumption of

jet fuel. Total GHG emissions from our aircraft declined in 2020
compared with 2019, primarily due to reduced capacity in
response to the e ects of the COVID-19 pandemic. Additionally,
emissions intensity per ASM72 improved in 2020, primarily as a
result of operating fewer of our oldest fuel-e cient aircraft due Total Emissions
to capacity reductions along with lower load factors73 resulting (metric tons CO2e)
from the COVID-19 pandemic. Signi cantly lower load factors 12,591,984
due to COVID-19 led to a substantial increase in our emissions
per revenue passenger mile (RPM)74 and revenue ton mile
(RTM)75. As travel demand returns toward pre-pandemic levels,
our emissions intensity metrics are expected to improve.76
With many of our Corporate Campus-based Employees working

remotely due to COVID-19, energy consumption at our campus
Ground Support
was lower in 2020. This change in work location resulted in lower Equipment (GSE) Natural Gas
emissions from our electricity and natural gas consumption. Fuel Consumption Consumption
35,328 6,167

Historic CO2e RPM &

ASM
RTM
Intensity Ratios 0.250 2.50
(calculated using 0.233

RPM
Scope 1 & 2 emissions)77
0.225 2.25
2.07
RTM
0.200 2.00
0.175 1.75
RPM Intensity Ratio 0.150 1.50

(metric tons CO2e/1,000 RPMs)78
RTM Intensity Ratio

(metric tons CO2e/1,000 RTMs)79 0.125 1.25
0.122
ASM
ASM Intensity Ratio
(metric tons CO2e/1,000 ASMs)80
2013 2014 2015 2016 2017 2018 2019 2020

KEY TOPIC
STORIES
Waste Repurpose
with Purpose
At Southwest, we don t think that throwing away resources that could be repurposed,
reused, or recycled is a very smart way to operate a business and it certainly isn t very
good for the Planet—so we take a comprehensive approach to waste management.
Whether on the ground or in the air, our Heart for the Planet prompts us to minimize
our waste stream so that we can better preserve our Planet s nite natural resources.
Repurpose with Purpose UN SDG

Alignment
GRI Index
306-2
At Southwest, our Heart doesn t just give back it gives forward. As an airline,
we recognize our business has an impact on the world around us, both good
and bad. We want to do our part to protect the world for future generations.
Repurpose with Purpose is a global sustainability initiative

that respects our resources while sharing our Heart
with others. Through the program, we partner with
like-minded organizations to upcycle, downcycle, and
recycle thousands of pounds of materials every year,
keeping them out of land lls. In 2020, we repurposed
nearly 140,000 pounds of used aircraft seat covers through
Repurpose with Purpose.

In 2020, nearly
140,000
pounds
of leather seat covers
were repurposed.
Best of all, the program has a positive social impact while limiting We are honored to partner with Help Heal Veterans and other
waste. By turning leather seat covers, engine parts, and life vests organizations dedicated to supporting and championing our
into new, useful products, the program supports Customers and active and retired military. We believe in living responsibly,
communities helping provide employment, skills training, and respecting our resources, and sharing our Heart with others.
other social bene ts. With respect, honor, and gratitude, Southwest thanks all veterans
for their bravery and service. To learn more about the Help Heal
In November 2020, we teamed up with one of our Repurpose Veterans organization, please visit their website at healvets.org.
with Purpose partners, Help Heal Veterans, to distribute
therapeutic craft kits to veterans and Customers traveling
in November. Help Heal Veterans has provided more than
31 million free therapeutic arts and crafts kits to hospitalized
and homebound veterans since the organization was founded.
The kits give veterans a creative outlet and o er important
We are honored to partner with
therapeutic and rehabilitation bene ts. Help Heal Veterans works Help Heal Veterans and other
with clinicians and veterans to make sure that the kits address
organizations dedicated to supporting
veterans unique needs, and the kits often become part of formal
rehabilitation treatment plans. and championing our active
and retired military.
Through this partnership, Help Heal Veterans utilizes the leather
from our aircraft seat covers to create craft kits for veterans,
allowing them to make items including footballs, belts, wallets,
and wristbands. As of Dec. 31, 2020, more than 106,000 veterans
have received therapy art kits made from Southwest materials.

Planet Data Table 2020 2019 2018 2017 2016
Environmental Impacts
Total energy consumption (megawatt-hours (MWh)) 49,779,294 81,119,463 81,128,558 79,203,011 77,366,032
81
Production activity (revenue ton miles (RTMs)) 6.1 billion 14.6 billion 14.8 billion 14.4 billion 13.9 billion
82
Intensity ratio (MWh/1,000 RTMs) 8.16 5.56 5.47 5.52 5.57
83
Water consumption (gallons) 83 million 95 million 99 million 85 million 83 million
Intensity ratio (gallons/Employee)84 Nearly Nearly Nearly More than More than
1,500 1,600 1,700 1,500 1,500
Greenhouse Gas Inventory (Scope 1 and Scope 2 Emissions)

Scope 1 emissions (metric tons of carbon dioxide equivalent (CO2e))85 12,591,984 20,532,323 20,537,710 20,148,910 19,664,622
Scope 2 emissions (metric tons of CO2e)86 38,334 44,783 46,972 51,634 53,264
Total Scope 1 and Scope 2 GHG emissions (metric tons of CO2e) 12,630,318 20,577,106 20,584,682 20,200,544 19,717,886
Intensity ratio (metric tons CO2e/1,000 RPMs)87 0.233 0.157 0.154 0.157 0.158
Intensity ratio (metric tons CO2e/1,000 ASMs)88 0.122 0.131 0.129 0.131 0.133
Intensity ratio (metric tons CO2e/1,000 RTMs)89 2.07 1.40 1.39 1.41 1.42
90
Greenhouse Gas Inventory (Scope 3 Emissions)
Waste generated in operations—waste to landfill and burned 1,500 2,200 2,100 1,900 2,700
for energy recovery (metric tons CO2e)
Employee commuting—estimate based on survey (metric tons CO2e) 118,300 151,400 147,200 137,600 137,200
91
Other Air Emissions
NOX emissions (tons) 7.1 7.1 6.8 7.1 7.1
SOX emissions (tons) 0.7 0.7 0.7 0.7 0.7
Regulatory Compliance
Number of environmental violations resulting in fines None 1 None None 1
Total environmental fines $- $ 1,305 $- $- $ 3,303
Environmental Conservation
Fuel efficiency (ASMs/gallon)92 81.3 75.7 76.3 75.2 74.4
93
Fuel efficiency (RPMs/gallon) 42.3 63.2 63.7 63.1 62.5
94
Fuel efficiency (RTMs/gallon) 4.8 7.0 7.1 7.0 7.0
Total number of electric Ground Support Equipment (GSE) 1,439 1,412 1,304 1,215 1,338
Purchases of renewable energy certificates (kWh) 0 More than More than More than More than
25 million 25 million 25 million 25 million
Waste Management and Recycling95

Total waste generated (tons) 6,032 9,310 10,599 9,858 9,690
Total waste recycled (tons) 1,503 2,426 3,757 3,737 3,348
Percent of total waste recycled 25 26 35 38 35
Recycled co-mingled waste—paper, plastic, aluminum, Nearly Nearly Nearly More than More than
and cardboard (tons) 950 1,600 3,000 3,000 2,600
Recycled industrial waste (tons) 423 584 568 730 721
Hazardous waste generated (tons) 25.7 27.4 29.2 21.6 24.1
Hazardous waste managed through recycling and beneficial reuse (tons) 19.1 22.3 20.6 17.2 16.1
Intensity ratio (pounds of hazardous waste generated/aircraft) 72 73 78 61 67

GRI Content Index
Reporting Frameworks
Since 2009, we have used the Global Reporting Initiative (GRI) to guide our disclosures in the One Report. In an e ort to continue to
provide our Stakeholders with increased transparency, 2020 marks the rst time that we have linked the One Report to Sustainability
Accounting Standards Board (SASB) standards.
The 2020 Southwest One Report references both GRI Standards and SASB. Disclosures corresponding to both frameworks can be found
in the following indices.
Information is presented in the 2020 Southwest One Report with respect to e orts related to corporate social responsibility (CSR)
and environmental, social, and governance (ESG) key topics, a term we use instead of materiality to avoid confusion with key
nancial information.
GRI Content Index

Indicator Description 2020 Response
General Disclosures
Organizational Profile
102-1 Name of the organization Southwest Airlines Co.
102-2 Activities, brands, products, Reporting on Business Performance

and services
102-3 Location of headquarters 2702 Love Field Dr.

Dallas, Texas 75235
USA
102-4 Location of operations We operated in eleven countries: the United States, Mexico, Jamaica, The Bahamas, Aruba,
Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.
102-5 Ownership and legal form Reporting on Business Performance
102-6 Markets served We serve business and leisure air travelers, and in 2020, operated in the U.S. domestic market as
well as some parts of Mexico, Central America, and the Caribbean region.
Reporting on Business Performance

Expanding Our Network
Our Fleet
102-7 Scale of the organization Reporting on Business Performance

102-8 Information on Employees People Data Table

and other workers
102-9 Supply chain Our Approach to Supply Chain
102-10 Significant changes to the Our Approach to Supply Chain

organization and its
supply chain

GRI Content Index
Organizational Profile (continued)
102-11 Precautionary principle Southwest has not adopted the precautionary principle. For Southwest, adoption of the principle
or approach would apply primarily to potential harm related to use of fossil fuels and carbon emissions.
While the precautionary principle has not been adopted, Southwest remains committed to
pursuing, implementing, and enhancing initiatives that minimize fuel consumption, which in turn
minimizes carbon emissions.
102-12 External initiatives Airlines for America (A4A)

A4A Climate Change Commitment
Coalition for Public Relations Research Standards
102-13 Membership of associations We develop and nurture authentic civic and business relationships across the more than
100 communities within the Southwest system. In 2020, we invested in 95 national, state, and local
membership organizations including, but not limited to, the U.S. Chamber of Commerce, Greater
Baltimore Committee, Downtown Denver Inc., Dallas Regional Chamber of Commerce, Hawaii
Lodging and Tourism Association, Los Angeles Area Chamber of Commerce, Greater Houston
Partnership, and Florida Economic Development Council.
Southwest also participates in:
Airlines for America (A4A)

Coalition for Public Relations Research Standards
National Diversity Council Board
Catalyst: Workplaces That Work for Women
Dallas Citizens Council
U.S. Chamber of Commerce
Travelers United
Workforce Solutions Greater Dallas Board: a local organization mandated to implement a system
of services that complement economic development as a resource for employers to access the
quality employees they need, and training individuals to be successfully employed.
Strategy
102-14 Statement from senior A Word from Gary

decision-maker of the
organization
102-15 Key impacts, risks, Our Approach to Key Topics

and opportunities
Our Approach to Supply Chain
Our Approach to Diversity, Equity, and Inclusion
Our Approach to Environmental Stewardship
2020 Annual Report
Southwest Airlines CDP Submission
Impact
102-16 Values, principles, standards, Sharing Our Company Values

and norms of behavior
Purpose, Vision, and The Southwest Way, Our Promises and Values
Investor Relations
Supplier Information
Code of Ethics
102-17 Mechanisms for advice Code of Ethics

and concerns about ethics
Audit Committee Procedures for Reporting Complaints or Concerns

GRI Content Index
Governance
102-18 Governance structure Our Approach to Governance

Investor Relations, Corporate Governance
Board Committees
Company Officers
Corporate Bylaws
Corporate Governance Guidelines
Corporate Policies
2021 Proxy Statement, pp. 8-15
102-19 Delegating authority Our Approach to Governance
102-20 Executive-level responsibility Our Approach to Governance

for economic, environmental,
and social topics
102-21 Consulting Stakeholders on Our Approach to Key Topics

economic, environmental,
and social topics
102-22 Composition of the highest Our Approach to Governance

governance body and its
committees
102-23 Chair of the highest 2021 Proxy Statement, pp. 6 and 9

governance body
102-24 Nominating and selecting the Investor Relations, Corporate Governance

highest governance body
Nominating and Corporate Goverance Committee Charter
2021 Proxy Statement, pp. 8-9 and 14
102-25 Conflicts of interest Code of Ethics

Our Approach to Governance
2021 Proxy Statement, p. 15
102-26 Role of highest governance Our Approach to Governance

body in setting purpose,
values, and strategy
102-27 Collective knowledge of Our Approach to Governance

highest governance body
102-28 Evaluating the highest Our Approach to Governance

governance body's
performance
2021 Proxy Statement, pp. 8-9 and 14
102-29 Identifying and managing Our Approach to Governance

economic, environmental,
and social impacts
Our Approach to Key Topics
102-30 Effectiveness of risk Our Approach to Governance

management processes

GRI Content Index
Governance (continued)
102-31 Review of economic, Our Approach to Governance

environmental, and
social topics
102-32 Highest governance body's Our Citizenship Executive Steering Group (CESG) Leadership reviews and approves our annual
role in sustainability reporting One Report, with our Chief Executive Officer providing final review and approval.
102-33 Communicating Audit Committee Procedures for Reporting Complaints or Concerns

critical concerns
Code of Ethics
2021 Proxy Statement, p. 10
102-34 Nature and total number This information is confidential and is not communicated externally by the Company.
of critical concerns
102-35 Remuneration policies 2021 Proxy Statement, pp. 18-46
102-36 Process for determining 2021 Proxy Statement, pp. 18-46

remuneration
102-37 Stakeholders' involvement 2021 Proxy Statement, pp. 48-49

in remuneration
102-38 Annual total 2021 Proxy Statement, pp. 37-38

compensation ratio
Stakeholder Engagement
102-40 List of Stakeholder groups Our Approach to Key Topics
102-41 Collective bargaining As of Dec. 31, 2020, approximately 83% of our Employees are covered by collective bargaining
agreements agreements.
102-42 Identifying and selecting Our Approach to Key Topics

Stakeholders
102-43 Approach to Stakeholder Our Approach to Key Topics

engagement
102-44 Key topics and Our Approach to Key Topics

concerns raised
Reporting Practice
102-45 Entities included in the Reporting on Business Performance

consolidated financial
statements
102-46 Defining report content Our Approach to Key Topics

and topic boundaries
102-47 List of key topics Our Approach to Key Topics
102-48 Restatements of information See data tables for any restatements of information provided in previous reports:
People Data Table

Planet Data Table
102-49 Changes in reporting There are no significant changes from previous reporting periods in key topics
and topic boundaries.

GRI Content Index
Reporting Practice (continued)
102-50 Reporting period Calendar year 2020, unless otherwise stated.
102-51 Date of most recent report Apr. 21, 2020
102-52 Reporting cycle Annual, calendar year 2020
102-53 Contact point for questions [email protected]

regarding the report
102-54 Claims of reporting This report is self-declared to be in accordance with the Global Reporting Initiative (GRI)
in accordance with Core framework.
GRI standards
102-55 GRI content index Corporate Sustainability Reporting Framework
102-56 External assurance Assurance Statement for 2020 Greenhouse Gas Inventory
Topic-Specific Standards
Economic Disclosures
Management Approach
103-1 Explanation of the key topic In 2020, Southwest completed a formal key topics assessment to identify the most relevant CSR/
and its Boundary ESG topics according to our Stakeholders (Communities, Customers, Employees, Governments,
and Non-governmental Organizations (NGOs), Investors, and Suppliers). The 2020 assessment
examined 28 topics and helped guide the creation of the One Report. Topics were grouped into
five categories: Economic, Employees, Environment, Governance, and Social.
Reporting Scope and Key Topics
103-2 The management approach At Southwest, we are committed to doing the right thing by our People, through our Performance,
and its components and in service to our Planet. Our Employees, Customers, Shareholders, suppliers, and community
partners all contribute to the many opportunities we see for the future of our Company. We take
pride in our reputation as the airline with Heart, and that naturally extends to a passion for making
a difference in our communities and protecting our resources. We listen to and learn from them,
seeking to address their interests in the One Report and beyond. Our commitment to being a good
global citizen is shared in the way we carry out our Purpose connecting People to what s
important in their lives through friendly, reliable, and low-cost air travel.
Details on Our Approach
103-3 Evaluation of the Our Approach to Governance

management approach
Economic Performance
201-1 Direct economic value Our Approach to Community Outreach

generated and distributed
Deepening Our Commitment to Diversity, Equity, and Inclusion (DEI)
2020 Financial Results
Ten-Year Summary
System Map

GRI Content Index
Economic Performance (continued)
201-2 Financial implications and Southwest has voluntarily reported our greenhouse gas emissions through CDP (formerly the
other risks and opportunities Carbon Disclosure Project) for the past 12 years. In our CDP response, we quantify climate
due to climate change change impacts, risks, and opportunities on our business and provide information on how
we re integrating climate change into our business strategy. You can find Southwest s CDP
response at www.cdp.net. We have invested more than $630 million in fuel efficiency projects
since 2002, exclusive of new aircraft purchases.

Planet Data Table
201-3 Defined benefit plan Economic Performance

obligations and other
retirement plans
People Data Table
201-4 Financial assistance received Economic Performance

from Government
2020 Financial Results
2020 Annual Report
Indirect Economic Impacts
203-1 Infrastructure investment Our Approach to Community Outreach

and services supported
2020 Annual Report, pp. 62-63, 79-81
203-2 Significant indirect Our Approach to Supply Chain

economic impacts
Our Approach to Community Outreach
Our Approach to Economic Impact
People Data Table
Anti-Corruption
205-2 Communication and training At Southwest, we strive to maintain accountability and transparency of our business practices to
about anti-corruption policies reduce or eliminate corruption. We require all Employees to certify receipt and understanding of
and procedures our Code of Ethics and Insider Trading Policy. We also employ robust auditing procedures to
analyze and monitor business activities, which further enhance our ability to maintain high ethical
standards. We continually review our systems to provide transparency and accountability, and we
update our corporate governance policies when appropriate.
In 2020, more than 63,000 Southwest Airlines Employees and certain business associates certified
receipt of our Code of Ethics and Insider Trading policy. During 2020, we also distributed our
Foreign Corrupt Practices Act Policy and Anti-Corruption Compliance Procedures to all Company
Officers, Senior Leaders of all departments, and select Employees and Contractors who are
involved with Southwest s financial records and/or international operations.
In 2020, more than 2,700 individuals received and completed a compliance questionnaire
regarding the Foreign Corrupt Practices Act.

GRI Content Index
Environmental Disclosures
Management Approach
Reporting Scope and Key Topics Assessment

management approach
Energy
302-1 Energy consumption within Fuel Efficiency and Greenhouse Gas Emissions
the organization
Planet Data Table
302-3 Energy intensity Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table
302-4 Reduction of energy Total greenhouse gas emissions from our aircraft declined in 2020 compared with 2019, primarily
consumption due to capacity cuts in response to the effects of the COVID-19 pandemic.
Building Energy
Fuel Efficiency and Greenhouse Gas Emissions
302-5 Reductions in energy Although the Company's MAX aircraft remained grounded throughout 2020, the Company
requirements of products improved its fuel efficiency in 2020, as compared with 2019, primarily by operating fewer of its
and services oldest, least fuel-efficient Boeing 737-700 aircraft as a result of capacity cuts in response to the
effects of the COVID-19 pandemic. Lower load factors,96 due to COVID-19, also contributed to fuel
efficiency during 2020.
Building Energy
Fuel Efficiency and Greenhouse Gas Emissions
Planet Data Table
Emissions
305-1 Direct (Scope 1) Fuel Efficiency and Greenhouse Gas Emissions

GHG emissions
Planet Data Table
305-2 Energy indirect (Scope 2) Fuel Efficiency and Greenhouse Gas Emissions
GHG emissions
Planet Data Table
305-3 Other indirect (Scope 3) Planet Data Table

GHG emissions

GRI Content Index
Emissions (continued)
305-4 GHG emissions intensity Fuel Efficiency and Greenhouse Gas Emissions
Planet Data Table
305-5 Reduction of GHG emissions Fuel Efficiency and Greenhouse Gas Emissions
Planet Data Table
305-6 Emissions of ozone-depleting One of the most important issues surrounding chemical management is the use of ozone-depleting
substances (ODS) substances. The ozone layer prevents harmful ultraviolet light from passing through the atmosphere,
and the use of these substances can cause a decrease in the total volume of the ozone layer.
Potential ozone-depleting substances Southwest presently uses include refrigerants found in the
HVAC systems and appliances of Southwest operated buildings and the air conditioning systems of
Company vehicles. Based on an upper-bound assumption of the expected losses that would occur
from Southwest facilities, in 2019, we determined that the emissions from these refrigerants
represented less than 0.02% of our total greenhouse gas emissions. We do not produce or import
ozone-depleting substances in Southwest operations.
305-7 Nitrogen oxides (NOX), Planet Data Table

sulfur oxides (SOX), and other
significant air emissions97
Effluents and Waste
306-1 Water discharge by quality Planet Data Table

and destination
306-2 Waste by type and Repurpose with Purpose

disposal method
Planet Data Table
306-3 Significant spills In 2020, we had two spills that were reportable to the National Response Center per regulatory
requirements. These spills were contained within an impervious area and there were no
environmental impacts. We recognize that spills of chemicals, oils, and fuels can have a significant
impact on our Planet, so we make every effort to prevent them.
Environmental Compliance
307-1 Non-compliance with Planet Data Table
environmental laws
and regulations
Social Disclosures
Management Approach
Reporting Scope and Key Topics Assessment

GRI Content Index
Management Approach (continued)

management approach
Employment
401-1 New Employee hires People Data Table
and Employee turnover
401-2 Benefits provided to Full-time In 2020, more than 59,700 active and inactive Southwest Employees participated in at least one
Employees that are not component of the Company s Employee benefits program. Southwest offers standard benefits to
provided to temporary or both full-time and part-time Employees. In the case of tuition reimbursement, Southwest provided
Part-time Employees an annual benefit, which will be counted toward the calendar year in which reimbursement is
made. Due to COVID-19, in July, we suspended the tuition reimbursement program.
Many of the components offered to Employees in our Employee benefits program are also offered
to dependents and/or committed partners.
Our Approach to Economic Impact

People Data Table
Employee Benefits
401-3 Parental leave Our Approach to Employee Experience

Employee Benefits
Labor/Management Relations
402-1 Minimum Notice Periods Our Approach to Employee Experience
Regarding Operational
Employee COVID-19 Response
Changes
Occupational Health and Safety
403-1 Occupational health and Our Approach to Occupational Health and Safety
safety management system
403-2 Hazard identification, Our Approach to Occupational Health and Safety

risk assessment, and
Four Functions of Southwest's Safety Management System (SMS)
incident investigation
The Southwest Promise
403-3 Occupational health services Our Approach to Occupational Health and Safety
403-4 Worker participation, Our Approach to Occupational Health and Safety

consultation, and
communication on
occupational health The Southwest Promise
and Safety

GRI Content Index
Occupational Health and Safety (continued)
403-5 Worker training on Our Approach to Occupational Health and Safety

occupational health
and Safety
Training and Education
404-1 Average hours of training People Data Table

per year per Employee
404-2 Programs for upgrading Our Approach to Training and Development

Employee skills and transition
assistance programs
People Data Table
Diversity and Equal Opportunity
405-1 Diversity of governance Southwest is committed to providing a stable work environment with equal opportunity for
bodies and Employees learning and personal growth. It is expected that Employees of Southwest Airlines act responsibly
to maintain a positive working environment, allowing each Employee to perform at their maximum
potential.
Southwest encourages any Employee to bring any questions or concerns regarding harassment,
sexual harassment, discrimination, or retaliation to their Leaders or to the Employee Relations
Team. All inquiries are reviewed and addressed by the Employee Relations Team promptly,
impartially, and discreetly under Southwest Airlines Policy Concerning Harassment, Sexual
Harassment, Discrimination, and Retaliation.
Our Approach to Diversity, Equity, and Inclusion

Deepening our Commitment to Diversity, Equity, and Inclusion (DEI)
People Data Table
Freedom of Association and Collective Bargaining
407-1 Operations and suppliers in At Southwest, we are strong supporters of protecting each individual s basic human and civil rights
which the right to freedom of and are guided by fundamental principles to not only comply with the law at all times, but also to
association and collective avoid the appearance of impropriety in the actions of our Employees and our business partners.
bargaining may be at risk
One of our key corporate responsibilities is to respect human rights within our operations and
throughout our value chains. We reflect these principles in various policies and our conduct toward
Employees, Customers, suppliers, and the communities where we serve.
We have created and adhere to Company policies to support and respect the protection of human
rights within our sphere of influence. These policies include our commitment to:
• Prohibit any form of harassment, discrimination, or retaliation in the workplace based on race, color,
religion, age, sex, sexual orientation, gender identity, pregnancy, marital status, national origin,
disability, veteran status, genetic information, or other legally protected statuses
• Respect the right of Employees to associate freely
• Recognize lawful rights of Employees to choose or not choose collective bargaining representation
We have not identified operations or suppliers where the right to exercise freedom of association
and collective bargaining is being violated. We take preventative measures to mitigate this risk
through our corporate policies.
Corporate Policies

GRI Content Index
Human Rights Assessment
412-2 Employee training on human Southwest has a nearly 50-year history of proudly putting People first—which extends to both our
rights policies or procedures Employees and Customers. We approach our commitment to supporting human rights in a variety of
ways, which includes our recruitment efforts, how we train and equip our Employees, and the support
we provide to different organizations in service to our communities. We are committed to evaluating
our approach and regularly assess our impact on the communities we serve.
At Southwest, we are committed to training our Employees on global issues and important topics.
We conduct training on human rights issues as they relate to harassment, discrimination, or
retaliation for all Employees. Human rights training and information (including training on Human
Trafficking and notification to law enforcement authorities) are available for existing Employees
through a variety of vehicles, including our Guidelines for Employees; our Disability Discrimination
and Workplace Accommodation Policy, in both written and audio versions; our Most Compliant
Leader training, a program required biannually of all Leaders, Supervisors, and above; and our
harassment online learning module. More than 31,700 Southwest Employees and Contractors
completed human rights training courses, totaling more than 61,000 training hours in 2020.
We also deliver disability awareness training that provides an overview on how to best demonstrate
Hospitality to our Customers with disabilities. Our Customer-facing Operational Employees attend
annual training on our responsibilities as an airline.
There is a growing focus on Human Trafficking at Southwest and in the airline industry. A robust
Human Trafficking training is required for our Frontline Employees and recommended as voluntary
curriculum for other Employees. In 2020, 18,000 Employees expanded their education and awareness
around the growing global epidemic of Human Trafficking and Southwest's commitment to Safety
regarding this issue through a video highlighting a recent Human Trafficking experience on a
Southwest flight. We also hosted an online course that provides an overview on the crime of Human
Trafficking. In 2020, 10,000 Employees learned how to identify Human Trafficking instances and take
action, if necessary, through this course.
Our Approach to Training and Development
Local Communities
413-1 Operations with local Our Approach to Community Outreach

community engagement,
Community Outreach During COVID-19
impact assessments,
and development programs Community Outreach Initiatives in Our Communities
Public Policy
415-1 Political contributions Our Approach to Public Policy
Customer Health and Safety
416-1 Assessment of the health and Southwest strives to educate and inform Customers on a wide range of topics in the interest of
Safety impacts of product and their health and Safety. During the COVID-19 pandemic and as part of the Southwest Promise,
service categories Southwest implemented and adjusted procedures intended to support the health and well-being
of its Employees and Customers.
Our Approach to Occupational Health and Safety

Southwest Promise

SASB Content Index
SASB Index 2020

Sustainability Disclosure Topics and Accounting Metrics
Topic Code Metric Category Unit or Measure Reference/Response
Greenhouse TR-AL-110a.1 Gross global Scope 1 emissions Quantitative Metric tons (t) CO2e Fuel Efficiency and Greenhouse Gas Emissions
Gas Emissions
Planet Data Table
TR-AL-110a.2 Discussion of long-term and short-term Discussion n/a Our Approach to Environmental Stewardship
strategy or plan to manage Scope 1 emissions, and Analysis
Strengthening Our Commitment to the Environment
emissions reduction targets, and an analysis of
performance against those targets Fuel Efficiency and Greenhouse Gas Emissions
TR-AL-110a.3 Total fuel consumed Quantitative Megawatt-hours Planet Data Table

(MWh)
Labor Practices TR-AL-310a.1 Percentage of active workforce covered under Quantitative Percentage (%) People Data Table
collective bargaining agreements
TR-AL-310a.2 (1) Number of work stoppages Quantitative Number, Days idle 0&0
(2) Total days idle
Competitive TR-AL-520a.1 Total amount of monetary losses as a result of Quantitative Reporting currency $0
Behavior legal proceedings associated with
anticompetitive behavior regulations
Accident and Safety TR-AL-540a.1 Description of implementation Discussion and n/a Our Approach to Occupational Health and Safety
Management and outcomes of a Safety Management System Analysis
Four Functions of SMS
TR-AL-540a.2 Number of aviation accidents Quantitative Number No events classified by the NTSB as accidents
TR-AL-540a.3 Number of governmental enforcement actions Quantitative Number 1

of aviation safety regulations
Activity Metrics
Metrics that quantify the scale of a company s business and are intended for use in conjunction with accounting metrics to normalize
data and facilitate comparison
Code Activity Metric Category Unit of Measure 2020 Response
TR-AL-000.A Available seat miles (ASM)98 Quantitative ASM Performance Data Table
TR-AL-000.B Passenger load factor99 Quantitative Rate Performance Data Table
TR-AL-000.C Revenue Passenger miles (RPM)100 Quantitative RPM Performance Data Table
TR-AL-000.D Revenue ton miles (RTM)101 Quantitative RTM Planet Data Table
TR-AL-000.E Number of departures Quantitative Number Performance Data Table

(measured in Trips Flown)
TR-AL-000.F Average age of fleet Quantitative Years Performance Data Table
Note: Southwest uses miles for operational data reporting, rather than kilometers as in the SASB metrics.
Note: Southwest reports our energy consumption in megawatt-hours (MWh), rather than gigajoules as in the SASB metrics.

How We Support the Global Goals

The United Nations Sustainable Development Goals (SDGs) aim to address our world s most complex, pressing challenges, such as
poverty, inequality, and environmental degradation. Enacting the 17 SDGs will require innovation, collaboration, and cooperation
between businesses, governments, Non-governmental Organizations (NGOs),102 communities, and individuals. While Southwest supports
all 17 SDGs, our 2020 key topics assessment has illuminated areas for potential operational improvements, allowed us to enhance
our corporate social responsibility (CSR)/environment, social, governance (ESG) reporting approach, and helped us align our CSR/ESG
activities with the SDGs and Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) reporting frameworks.
These goals inform our citizenship strategy and actions and help us best leverage our People and resources to tackle these challenges.
Support healthy living and promote well-being for all at all ages
Throughout the COVID-19 pandemic, we proactively made changes in our operations to support the Safety and peace of mind of our
Employees and Customers. We provided bene ts and resources to help our Employees and their families lead healthy, balanced lives.
Through our Medical Transportation Grant Program (MTGP), we annualy provide complimentary roundtrip tickets to nonpro t hospitals
and medical transportation organizations for medical patients and their caregivers who are traveling for specialized life-saving or life-
changing medical care. Since MTGP s inception in 2007, we have donated more than $38.6 million in transportation value, including
our 2021 commitment of over $3 million. In 2021, we awarded 75 hospitals across the country with complimentary air travel to transport
Target
patients for medical treatment as part of MTGP.
3.2, 3.4
Additionally, in response to COVID-19 we:
• Provided more than 650 complimentary ights for medical personnel to assist in areas highly impacted by COVID-19, including
transporting nearly 198 medical personnel to Hawaii to relieve local hospital employees, ensuring continued high-quality care for
COVID-19 patients in 2020
• Donated cargo shipment services for humanitarian relief organizations transporting personal protective equipment (PPE), ventilators,
and other life-saving medical devices across the country in 2020
Southwest also provides a variety of resources, including ongoing education and communication, to assist with maintaining and improving
Employees and their families physical, mental, and nancial health and well-being. Resources include:
• Designated Population Health Team Members to support workgroup-speci c health initiatives
• Vendor resources dedicated to Companywide education and one-on-one Employee assistance
• An Employee portal with resources and educational recordings available 24/7, year-round

Support inclusive and equitable quality education and promote lifelong learning
opportunities for all
In 2020, we invested more than 1.2 million hours in Employee training and development. Southwest Airlines University (SWA U) provides
Employees with access to hundreds of learning and development opportunities. At Southwest, we train in a highly regulated environment
and need to measure pro ciency. We believe that skilling up allows us to stay competitive and remain relevant in an environment that is
constantly changing. As a Company, we will continue to evaluate the best method for learning, such as classroom, distance, on-the-job,
Target mentoring, etc. The needs of learners are changing and will likely be a blended experience with technology and in-person. In response
to the COVID-19 pandemic, SWA U became a completely virtual learning platform. Our Teams continue to evaluate our training approach
4.1, 4.4, 4.7 in the long term. We are mindful of our audience, providing the tools they need and meeting them where they are to increase and deliver
quality educational opportunities.
We believe investing in our future is part of living responsibly. This includes investing in educational programs and partnerships that
inspire the next generation to pursue traditional and non-traditional career pathways.103 In 2020, we:
• Enabled personal and professional advancement to empower individuals and communities by awarding 175 college students with
complimentary travel through our Lanzate/Take-o Travel Award program, providing the opportunity for Latino students to pursue
higher education pathways, while remaining connected to their families
• Continued our Destination 225 program to support future careers in aviation
• Partnered with hundreds of organizations across the country focused on leadership, education, and entrepreneurship including, but
not limited to, Hispanic Heritage Foundation, National Urban League, 100 Black Men, National Association of Women Business Owners,
and MANA de San Diego to support their missions
• Provided unique learning opportunities through our Adopt-A-Pilot program to inspire and educate students on career pathways in
the aviation industry, giving Southwest Pilots opportunities to mentor and educate students in and around the fth-grade level through
aviation-themed activities related to science, geography, math, writing, and other core subjects
• Awarded nine scholarships to eligible dependents of Southwest Airlines Employees to support the pursuit of higher education
pathways and goals
Achieve gender equality and empower all women and girls

Southwest s inclusive Culture recognizes, respects, and values the di erences of all Employees including women. We also provide
paid parental leave to new Moms and Dads, and allow them exibility to use this bene t in a way that works best for their needs.
Our Supplier Diversity Program seeks sustainable, diverse suppliers that are women-owned.
To combat violence, including acts against women and girls, Southwest launched a Human Tra cking awareness curriculum to educate
Target and empower all Employees on the issue of Human Tra cking, raise awareness for potential signs of tra cking, and inform them about
how to take action. We also partnered with several nonpro t organizations in the ght against Human Tra cking by:
5.1, 5.2
• Supporting prevention, rescue, and restoration initiatives to address the systemic issues impacting this epidemic
• Supporting the National Tra cking Hotline104 through our partnership with Polaris105 and providing complimentary travel to transport
victims to safety
• Investing in local Human Tra cking organizations using a geo-targeted approach to provide support in cities where tra cking
is most prevalent
Southwest has long been committed to diversity, equity, and inclusion (DEI), having been founded and guided across ve decades
by The Golden Rule to "Treat others as you would like to be treated." We continue to look for opportunities to better re ect in our
organization the diverse demographics of the communities we serve. We engage in our diverse communities in a way that makes
a di erence over the long term, including strategic di erence-makers like education, scholarship, and workforce development.
We also utilize our supply chain practices and spending to make a strategic di erence in our diverse communities over the long term.
Promote sustained, inclusive, and sustainable economic growth, full and productive
employment, and decent work for all
As of Dec. 31, 2020, we provided direct employment to more than 56,000 Employees106 and procured goods and services from nearly
4,000 sources throughout our footprint. In 2020, more than 1.2 million hours were invested in Employee training and development.
With a strong presence in several leisure and business markets throughout North America, we believe our core business activities stimulate
indirect economic growth wherever we operate.
Target In 2020, more than 31,700 Southwest Employees and Contractors completed human rights training courses, totaling more than
8.2, 8.4, 8.7 61,000 training hours. Furthermore, 10,000 Employees learned how to identify Human Tra cking instances and were prepared to take
action, if necessary, through this course. Also in 2020, we supported employment opportunities for veterans to repurpose donated leather
(from Southwest aircraft) into art therapy kits and provided employment opportunities and skill development (utilizing donated leather
from Southwest aircraft) to Human Tra cking survivors through our partnership with Rethreaded.107

Reduce inequality within and among countries

In 2020, Southwest made several adjustments and improvements intended to help us advance our e orts to ght discrimination inside
our Company and in our communities. We adopted new formal goals intended to advance the diversity of our Senior Leadership and
created new training and resources to educate Employees and Leaders to help guide conversations about race, diversity, and inclusion.108
Externally, we leveraged longstanding relationships with partner organizations who will help us listen, learn, and act so that we can
support the diverse communities we serve.109
Target We continue our support of nonpro t and advocacy organizations that empower and promote inclusion for all, ensuring equal opportunity.
10.2, 10.4 • Partners include: National LGBT Chamber of Commerce (NGLCC), Texas Women s Foundation, Equality California, Disability: IN, National
Diversity Council, and Texas Diversity Council. We also donated $500,000 to longtime partners, National Urban League and 100 Black Men,
to support the social justice e orts, with a portion of the donation designated to local chapters across the country to support
leadership programs
Make cities and human settlements inclusive, safe, resilient, and sustainable
Southwest has a long history of giving back in the communities where we live and work. Historically, we have provided assistance in
the wake of natural disasters like oods or severe weather events, and encouraged Employees to volunteer through our Tickets for Time
program. In 2020, the pandemic provided us with new opportunities to serve people when they needed it most. Despite challenges to
our business posed by COVID-19, Southwest provided more than $3 million in support to help those a ected by the pandemic.
During 2020, we actively prepared for unexpected disasters or events to restore and rebuild strong communities by:
Target
• Supporting our key disaster partners through our annual giving program to support preparedness and response during times of crisis
11.1, 11.3, or disaster
11.5 • Engaging our Customers in a giving campaign to support American Red Cross, Team Rubicon, and Feeding America and their e orts at
the frontlines of the pandemic, helping raise more than $650,000
• Donating more than $1 million in provisioning snacks and beverages to Feeding America food banks and community partners across
the Southwest system to support COVID-19 relief e orts
• Contributing $1 million in honor of Southwest s longstanding LUV Classic event to support children s charities focused on COVID-19
support programs and services
• Donating two charter ights to transport 330 volunteer re ghters from across the state of Texas to assist on the frontlines of the
California wild res
Take urgent action to combat climate change and its impacts

We seek to combat climate change by continually increasing our energy e ciency. We have voluntarily tracked and reported our
greenhouse gas (GHG) emissions since 2009, and we have exceeded Airlines for America s (A4A) fuel e ciency improvement target of
an annual average fuel e ciency improvement of 1.5% from 2009 (on an ASM110 per gallon basis).
We work toward our GHG emissions targets by modernizing our eet, electrifying our ground support vehicles, and nding other
innovative ways to increase e ciency.
Target 13.3
Our Environmental commitment includes:
• Focusing on a goal of carbon neutrality for our Scope 1 and 2 emissions by 2050. To accomplish this, we re looking to incorporate more
sustainable aviation fuel partners and introduce carbon o setting into our operation
• Partnering with di erent organizations including Red Rock Biofuels and The U.S. Department of Energy s National Renewable Energy
Laboratory (NREL) to support sustainable aviation fuel (SAF) development and production
• Returning the Boeing 737 MAX 8 to service, our most fuel e cient aircraft
• Expanding our Boeing order book through 2031, including 100 additional Boeing MAX 7 aircraft, which are expected to replace less
fuel-e cient Boeing 737-700 aircraft111
• Continuing the ongoing work of our Repurpose with Purpose program, which diverts materials and items intended for land lls while
generating social and economic opportunities for communities
• Continuing our work with a variety of organizations, nonpro ts, and government entities, including Airlines for America (A4A), whose work
complements our e orts to improve our environmental commitment

Endnotes
For the 2020 One Report, APA guidance for endnote placement and construction was used to provide supplemental information.
1) The 2020 Southwest Airlines One Report Company's dependence on Boeing with respect 19) Flight includes Cabin Service Support, Inflight,
contains forward-looking statements within to the Company's fleet order book and delivery and Flight Operations. Ground, Customer, and
the meaning of Section 27A of the Securities schedule; (v) the Company s dependence on Fleet Services includes Provisioning, Customer
Act of 1933, as amended, and Section 21E other third parties for products and services, in Services, Ground Operations, and Network
of the Securities Exchange Act of 1934, as particular with respect to global distributions Operations Center.
amended. Specific forward-looking statements systems and related alliances and capabilities,
20) Includes Southwest s contributions to
include, without limitation, statements and the impact on the Company s operations and
Employee health and welfare plans, workers
related to (i) the Company s environmental results of operations of any third party delays or
compensation insurance, and employer
sustainability beliefs, plans, and expectations; non-performance; (vi) the Company s ability to
payroll taxes. 2020 includes a one-time accrual
(ii) the Company s plans, goals, objectives, timely and effectively implement, transition, and
for Employees participating in voluntary
and initiatives related to diversity, equity, maintain the necessary information technology
separation programs.
and inclusion; (iii) the Company s plans and systems and infrastructure to support its
expectations with respect to Employee operations and initiatives; (vii) the impact of labor 21) U.S. Department of Transportation. (2021,
training, development, benefits (including matters on the Company s result of operations, February) Air Travel Consumer Report (ATCR).
post-retirement benefits), pay, and staffing business decisions, plans, and strategies; and A Product of the Office of Aviation
(including with respect to avoiding furloughs (viii) other factors, as described in the Company's Enforcement and Proceedings, Aviation
or pay cuts); (iv) the Company s Vision; (v) filings with the Securities and Exchange Consumer Protection Division. Washington,
the Company s network plans, expectations, Commission, including the detailed factors D.C. The Department of Transportation (DOT)
and opportunities, including factors and discussed under the heading "Risk Factors" in ranks all U.S. carriers based on the lowest
assumptions underlying the Company s the Company's Annual Report on Form 10-K ratio of complaints per 100,000 passengers
plans and expectations; (vi) the Company s for the fiscal year ended Dec. 31, 2020. enplaned, as published in the DOT Air Travel
initiatives and related goals with respect to Consumer Report (ATCR). Southwest earned
2) See Endnote 1.
global distribution system access and related the best Customer Satisfaction ranking among
alliances and capabilities; (vii) the Company s 3) Corporate Governance Guidelines U.S. Marketing Carriers with the lowest ratio of
financial position, outlook, plans, strategies, complaints to the DOT per 100,000 enplaned
4) Second amended and Restated Bylaws
goals, targets, and projected results of passengers for 2020. A Marketing Carrier is an
operations; (viii) the Company s fleet plans 5) See Endnote 1. airline that advertises under a common brand
and expectations; and (ix) the Company s 6) See Endnote 1. name, sells reservations, manages frequent
initiatives and expectations with respect to fuel flyer programs, and is ultimately responsible
7) Emissions from refrigerant losses are not for the airline s consumer policies. Operating
efficiency and emissions. These statements
included in our emissions inventory due to their Carriers only handle the flight operations,
involve risks, uncertainties, assumptions,
de minimis impact on our overall emissions. passenger check-in/boarding, and baggage
and other factors that are difficult to predict
Reference: Assurance Statement for 2020 handling for the respective Marketing
and that could cause actual results to vary
Greenhouse Gas Inventory. Carriers they serve—Operating Carriers are
materially from those expressed in or indicated
by them. Factors include, among others, 8) See Endnote 1. not responsible for DOT complaints related
(i) the extent of the COVID-19 pandemic, to policies, procedures, and advertising
9) Select Disaster Response Team Members began associated with the Marketing Carrier s brand.
including the duration, spread, severity, and
meeting and planning in January of 2020. The
any recurrence of the COVID-19 pandemic, 22) Independent Sector (2020, July). Independent
Disaster Response Pandemic Plan was activated
including through any new variant strains Sector Releases New Value of Volunteer Time
in March of 2020.
of the underlying virus; the effectiveness of $27.20 Per Hour. https://independentsector.
and availability of vaccines; the duration and 10) See Endnote 1. org/value-of-volunteer-time-2020/
scope of related government orders and 11) See Endnote 1.
restrictions; the duration and scope of the 23) The Department of Transportation (DOT) ranks
Company s actions to address Customer and 12) See Endnote 1. all U.S. carriers based on the lowest ratio of
Employee health concerns; the extent of the complaints per 100,000 passengers enplaned,
13) See Endnote 1.
impact of the COVID-19 pandemic on overall as published in the DOT Air Travel Consumer
demand for air travel and the Company s 14) Measuring 0.3 micrometers or greater Report (ATCR). Southwest earned the best
related business plans and decisions; and any in diameter passing through the filter. Customer Satisfaction ranking among U.S.
negative impact of the COVID-19 pandemic Marketing Carriers with the lowest ratio of
15) https://community.southwest.com/t5/Blog/
on the Company s access to capital; (ii) the complaints to the DOT per 100,000 enplaned
Building-Resilience-and-Advancing-Black-
impact of fears or actual outbreaks of other passengers for 2020. A Marketing Carrier is an
Communities/ba-p/108216
diseases, economic conditions, fuel prices, airline that advertises under a common brand
extreme or severe weather and natural 16) Active, full-time equivalent Employees as of name, sells reservations, manages frequent
disasters, fears of terrorism or war, actions Dec. 31 for specific calendar year. Included flyer programs, and is ultimately responsible
of competitors, consumer perception, 10,421 Employees participating in the for the airline s consumer policies. Operating
and other factors beyond the Company's Extended Emergency Time Off program as Carriers only handle the flight operations,
control, on consumer behavior and the of Dec. 31, 2020. passenger check-in/boarding, and baggage
Company's results of operations and business 17) See Endnote 16. handling for the respective Marketing
decisions, plans, strategies, and results; (iii) Carriers they serve—Operating Carriers are
18) Based on Employees' voluntary self-disclosure. not responsible for DOT complaints related
the impact of governmental actions and
2020 is our first year reporting Employees by to policies, procedures, and advertising
governmental regulations on the Company s
ethnicity and race. associated with the Marketing Carrier s brand.
plans, strategies, and operations; (iv) the

24) See Endnote 1. The Company's economic fuel and oil expense • Accrued charges related to the special
results differ from GAAP results in that they termination benefits upon Employees
25) The Department of Transportation (DOT) ranks
only include the actual cash settlements from accepting Voluntary Separation Program
all U.S. carriers based on the lowest ratio of
fuel hedge contracts—all reflected within fuel 2020 or Extended ETO as of Dec. 31, 2020;
complaints per 100,000 passengers enplaned,
and oil expense in the period of settlement.
as published in the DOT Air Travel Consumer • Gains associated with the sale-leaseback
Thus, fuel and oil expense on an economic
Report (ATCR). Southwest earned the best of 10 Boeing 737-800 aircraft and 10
basis has historically been utilized by the
Customer Satisfaction ranking among U.S. Boeing 737 MAX 8 aircraft to third parties;
Company, as well as some of the other airlines
Marketing Carriers with the lowest ratio of
that utilize fuel hedging, as it reflects the • A noncash impairment charge related
complaints to the DOT per 100,000 enplaned
Company s actual net cash outlays for fuel to 20 Boeing 737-700 aircraft that were
passengers for January and February
during the applicable period, inclusive of retired during 2020;
2020. A Marketing Carrier is an airline that
settled fuel derivative contracts. Any net • Unrealized losses related to 12 forward-
advertises under a common brand name,
premium costs paid related to option contracts starting interest rate swap agreements.
sells reservations, manages frequent flyer
that are designated as hedges are reflected as During 2020, the interest rate swap
programs, and is ultimately responsible for the
a component of fuel and oil expense, for both
airline s consumer policies. Operating Carriers agreements, which were related
GAAP and non-GAAP (including economic) to 12 737 MAX 8 aircraft leases
only handle the flight operations, passenger
purposes in the period of contract settlement. (with deliveries originally scheduled
check-in/boarding, and baggage handling for
The Company believes these economic results between June 2020 and September 2020),
the respective Marketing Carriers they serve—
provide further insight into the impact of the were de-designated as hedges due to the
Operating Carriers are not responsible for DOT
Company's fuel hedges on its operating scheduled delivery range no longer being
complaints related to policies, procedures,
performance and liquidity since they exclude probable, resulting in the mark-to-market
and advertising associated with the Marketing
the unrealized, noncash adjustments and
Carrier s brand. changes being recorded to earnings; and
reclassifications that are recorded in GAAP
26) An available seat mile (ASM) is one seat results in accordance with accounting • A post-retirement curtailment charge
(empty or full) flown one mile. Also referred to guidance relating to derivative instruments, related to Employees who accepted
as “capacity,” which is a measure of the space and they reflect all cash settlements related to Voluntary Separation Program 2020 and
available to carry Passengers in a given period. fuel derivative contracts within fuel and oil elected to participate in the Company's
expense. This enables the Company's Retiree medical benefits plan.
27) See Endnote 1.
management, as well as investors and analysts, Because management believes special
28) See Endnote 1. to consistently assess the Company's operating items can distort the trends associated
29) The Company's Consolidated Financial performance on a year-over-year or with the Company s ongoing performance
Statements are prepared in accordance with quarter-over-quarter basis after considering as an airline, the Company believes that
accounting principles generally accepted all efforts in place to manage fuel expense. evaluation of its financial performance can
in the United States ("GAAP"). These GAAP However, because these measures are not be enhanced by a supplemental presentation
financial statements may include (i) unrealized determined in accordance with GAAP, such of results that exclude the impact of special
noncash adjustments and reclassifications, measures are susceptible to varying items, in order to enhance consistency and
which can be significant, as a result of calculations, and not all companies calculate comparativeness with results in prior periods
accounting requirements and elections made the measures in the same manner. As a result, that do not include such items and as a basis
under accounting pronouncements relating the aforementioned measures, as presented, for evaluating operating results in future
to derivative instruments and hedging and may not be directly comparable to similarly periods. The following measure is often
(ii) other charges and benefits the Company titled measures presented by other companies. provided, excluding special items, and utilized
believes are unusual and/or infrequent in Further information on (i) the Company's fuel by the Company s management, analysts, and
nature and thus may make comparisons to hedging program, (ii) the requirements of investors to enhance comparability of year-
its prior or future performance difficult. accounting for derivative instruments, and (iii) over-year results, as well as to industry trends:
the causes of hedge ineffectiveness and/or net income (loss), non-GAAP.
As a result, the Company also provides
financial information in this report that was not mark-to-market gains or losses from derivative Information regarding special items and
prepared in accordance with GAAP and should instruments is included in Note 11 to the reconciliation of reported amounts to amounts
not be considered as an alternative to the Consolidated Financial Statements on Form excluding special items are included in the
information prepared in accordance with 10-K for the fiscal year ended Dec. 31, 2020. accompanying reconciliation table in the
GAAP. The Company provides supplemental The Company s GAAP results in the applicable Performance section.
non-GAAP financial information (also referred periods may include other charges or benefits 30) See Endnote 16.
to as "excluding special items"), including that are also deemed "special items," that the
results that it refers to as "economic," which Company believes make its results difficult to 31) Includes 32 Boeing MAX 737 aircraft in
the Company's management utilizes to compare to prior periods, anticipated future long-term storage as of Dec. 31, 2020.
evaluate its ongoing financial performance, periods, or industry trends. Financial measures Includes 60 Boeing 737 Next Generation
and the Company believes provides additional identified as non-GAAP (or as excluding aircraft removed from active fleet and
insight to investors as supplemental special items) have been adjusted to exclude remaining in long-term storage as of
information to its GAAP results. The non-GAAP special items. For the periods presented, in Dec. 31, 2020.
measures provided that relate to the addition to the items discussed above, special 32) Includes seasonal destinations, as well as
Company s performance on an economic fuel items include: seven international stations that still had
cost basis include net income (loss), suspended service as of Dec. 31, 2020, due to
non-GAAP; net income (loss) per share, • Proceeds related to the Payroll Support
Program under the CARES Act, which were the COVID-19 pandemic (BZE, GCM, LIR, NAS,
diluted, non-GAAP; and operating expenses PLS, SJO, and CZM). Service to CZM resumed
per ASM, non-GAAP, excluding fuel and used to pay Employee salaries, wages,
and benefits; on March 11, 2021.
oil expense and ProfitSharing (cents).

33) See Endnote 1. 55) See Endnote 36. 84) See Endnote 16.
34) A revenue passenger mile (RPM) is one paying 56) See Endnote 39. 85) See Endnote 7.
Passenger flown one mile. Also referred to as
57) See Endnote 40. 86) See Endnote 77.
“traffic,” which is a measure of demand for a
given period. 58) See Endnote 41. 87) See Endnote 34.
35) See Endnote 26. 59) See Endnote 31. 88) See Endnote 26.
34
36) Passenger load factor is RPMs divided 60) See Endnote 16. 89) See Endnote 69.
by ASMs26. 61) See Endnote 29. 90) In prior years, we have disclosed Scope 3
37) The average distance in miles the aircraft emissions related to Capital Goods—Aircraft
62) Tax amounts for each individual special item
is flown per trip. are calculated at the Company's effective rate
Production but have chosen to remove the
disclosure, as we have determined that our
38) The average amount of Passenger revenue per for the applicable period and totaled in this
calculation does not capture emissions for the
revenue Passenger carried. line item. The Non-GAAP tax rate considers
full value chain of the aircraft production thus
the appropriate tax treatment for special
39) Calculated as Passenger revenue divided by understating the metric. We do not currently
items and also reflects the anticipated benefit
RPMs34. Also referred to as “yield,” this is the have access to the remaining value chain
of carrying back full-year 2020 net losses to
average cost paid by a paying Passenger to components to accurately state the metric.
claim tax refunds against previous cash taxes
fly one mile, which is a measure of revenue
paid relating to tax years 2015 through 2019, 91) NOX and SOX emissions are reported in our
production and fares.
some of which were at higher rates than the annual emissions inventories for our DAL and
40) Calculated as operating revenues divided current year. The impact to Net loss may not PHX facilities. Data is from prior year due to air
by ASMs26. Also referred to as “operating be equivalent to the special item multiplied by emissions reporting cycle.
unit revenues” or “RASM,” this is a measure the effective tax rate, in all cases.
92) See Endnote 26.
of operating revenue production based on
63) Adjustment related to GAAP and Non-GAAP
the total available seat miles flown during a 93) See Endnote 34.
tax rate differences, primarily due to the
particular period.
Payroll Support Program proceeds being 94) See Endnote 69.
41) Calculated as operating expenses divided excluded as a special item. 95) Waste and material recycled from aircraft and
by ASMs26. Also referred to as “unit costs” select facilities as part of Southwest s waste
64) See Endnote 1.
or “costs per available seat mile,” this is the management and co-mingled recycling
average cost to fly an aircraft seat (empty 65) See Endnote 1.
programs. Data is not available for all locations
or full) one mile, which is a measure of 66) See Endnote 1. where Southwest operates. Does not include
cost efficiencies. international flights due to regulations that
67) See Endnote 1.
42) See Endnote 16. require waste from international flights to
68) See Endnote 26. be sterilized.
43) See Endnote 31.
69) A revenue ton mile (RTM) is one ton of 96) See Endnote 36.
44) Based on data from the Department of revenue traffic (Passenger and cargo)
Transportation s (DOT) O&D (Origin and transported one mile. RTM calculation
97) See Endnote 91.
Destination) Survey for the 12 months ending methodology has been updated to align 98) See Endnote 26.
Sept. 30, 2020, based on domestic originating with the methodology suggested by the
passengers. This data can be accessed via Diio 99) See Endnote 36.
International Civil Aviation Organization
Mi at mi.diio.net. (ICAO). RTMs for 2016 through 2019 100) See Endnote 34.
45) Metro areas are areas around cities that may have been restated to reflect the updated 101) See Endnote 69.
include multiple airports. In some cases, methodology.
the airports within a metro area may serve 102) See Endnote 1.
70) See Endnote 36.
separate competitive markets. 103) See Endnote 1.
71) See Endnote 1.
46) See Endnote 44. 104) National Trafficking Hotline.
72) See Endnote 26. https://humantraffickinghotline.org/
47) Co-terminal: Airports that share a common
city or region; for example, Newark, LaGuardia, 73) See Endnote 36. 105) https://polarisproject.org
and JFK are considered co-terminals to one 74) See Endnote 34. 106) See Endnote 16.
another serving the New York City area.
75) See Endnote 69. 107) Rethreaded is a registered 501(c)3 non-profit
48) See Endnote 44.
76) See Endnote 1. organization. Donations are tax-deductible
49) See Endnote 1. to the extent allowed by law.
77) Scope 2 emissions are reported as location-
50) See Endnote 31. https://www.rethreaded.com/
based emissions per GHG Protocol
51) See Endnote 31. Corporate Standard. 108) See Endnote 1.
52) The 737 MAX 8 is approximately 14 percent 78) See Endnote 34. 109) https://community.southwest.com/t5/Blog/
more fuel-efficient than the 737-800. The Building-Resilience-and-Advancing-Black-
79) See Endnote 69.
MAX 7 is expected to produce comparable fuel Communities/ba-p/108216
efficiency improvement compared with the 80) See Endnote 26.
110) See Endnote 26.
737-700. 81) See Endnote 69.
111) See Endnote 1.
53) See Endnote 34. 82) See Endnote 69.
54) See Endnote 26. 83) Water consumption is primarily for domestic
use at our facilities.

2020 One Report
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2020 One Report

One Team. All Heart.

2020 One Report Our Triple Bottom Line

2020 Southwest Airlines One Report 2

A Word from Gary

2020 Southwest Airlines One Report 3

Named Named the

Military Times Wall Street Journal

2020 Southwest Airlines One Report 4

Our commitment to being a good global citizen is shared in the

2020 Southwest Airlines One Report 5

Importance to external stakeholders

ESG Key Topics

EH & Safety EP Economic Performance Ph Philanthropy

DP Re Recruitment SP Sustainable Procurement

the prioritization of topics. 3.0 AC

1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Signific   f t to the business

Stakeholder How We Engage

Customers • Customer surveys • Customer call centers • Southwest Cross-Functional

Suppliers • Supplier Diversity Commitment • Engagement with internal participants

2020 Southwest Airlines One Report 6

The Company s bylaws and other information

2020 Southwest Airlines One Report 7

Fun 1,864 443,400+

2020 Southwest Airlines One Report 8

Southwest is committed to maintaining our low-cost Leadership through

2020 Southwest Airlines One Report 9

Prior to 2020, we had been on a years-long

We o er anonymity for Employees to share

Launched Career Mobility as a centralized resource for Employees to

2020 Southwest Airlines One Report 10

Four Functions of Southwest's Safety Economic Impact

Our commitment to the Planet helps us

2020 Southwest Airlines One Report 11

and age requirements as set forth by the

2020 Southwest Airlines One Report 12

Prevention Plans, Spill Prevention Control, and

2020 Southwest Airlines One Report 13

Putting People First

Enhanced DEI Southwest

2020 Southwest Airlines One Report 14

Employee COVID-19 Response UN SDG Alignment GRI Index

2020 Southwest Airlines One Report 15

scienti c research, and advice from medical and aviation

As the pandemic is ever-evolving, the entire Southwest Team

our People are always eager to make a di erence, and many

2020 Southwest Airlines One Report 16

Southwest COVID-19 2020 Event Timeline

2020 Southwest Airlines One Report 17

Deepening Our Commitment to UN SDG

Following the events of sumer 2020, Southwest developed

• Launched a Diversity Leadership initiative with representatives

• Enacted processes to support diverse candidates and

Based on voluntary reporting by Employees.

2020 Southwest Airlines One Report 18

In the fall of 2020, we announced the following objectives:

• Evolving hiring and development practices to enhance diversity,

2020 Southwest Airlines One Report 19

Signific f t to the business