Contract Effective Through 2011

Southwest Airlines says that its pilots, represented by the Southwest Airlines Pilots' Association (SWAPA), voted to ratify the tentative, five-year contract both parties reached last month. The new contract is active through Aug. 31, 2011. The current Southwest Pilot contract became amendable on Aug. 31, 2006. SWAPA and Southwest Airlines began contract negotiations in September 2006.

Gary Kelly

"I applaud the negotiation teams and the members of SWAPA for voting for this new agreement," said Gary Kelly, Southwest Airlines Chairman, President, and CEO. "It goes without saying that this new contract was negotiated in good faith during a consistently challenging economic period for the airline industry. Our Pilots are the hardest working and most productive in the business and deserve a contract that reflects this, yet is still in keeping with the current uncertain economic outlook."

This new contract rewards SWAPA membership for the Company's past two years of profitability, while making a critical move to tie the next two years' compensation to the Company's financial performance. SWAPA represents more than 5,900 Southwest Pilots.

FMI: www.southwest.com