SOUTHWEST AIRLINES CO FILES (8-K) Disclosing Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure.

Southwest Airlines Co. (the "Company") is providing updated guidance regarding
selected financial trends.

The following table presents updated selected financial guidance for third
quarter 2022. These projections are based on current booking trends and the
Company's current outlook, and actual results could differ materially.

                                                          3Q 2022 Estimation                     Previous estimation
Operating revenue compared with 2019 (a)                     Up 9% to 11%                           Up 8% to 12%
Available seat miles (ASMs, or capacity)                         ~Flat                                No change
compared with 2019 (a)
Economic fuel costs per gallon1 (b)                         $3.25 to $3.35                            No change
Fuel hedging premium expense per gallon                          $0.02                                No change
Fuel hedging cash settlement gains per gallon                    $0.43                                  $0.46
CASM-X (c) compared with 20192 (a)                           Up 12% to 15%                            No change
Scheduled debt repayments (d)                                ~$1.8 billion                          ~$55 million
Interest expense                                             ~$85 million                           ~$90 million


(a) The Company believes that comparison with 2019 is a more relevant measure of
performance due to the significant impacts in 2020 and 2021 from the pandemic.
(b) Based on the Company's existing fuel derivative contracts and market prices
as of September 8, 2022.
(c) Operating expenses per available seat mile, excluding fuel and oil expense,
profitsharing, and special items.
(d) The Company has approximately $54 million in scheduled debt repayments in
third quarter 2022. In addition, as of September 8, 2022, the Company has also
redeemed the outstanding $1.2 billion principal amount of all of its outstanding
4.750% Notes due 2023; extinguished $148 million in principal of the Company's
convertible notes for a cash payment of $193 million; and extinguished $329
million in principal of various other unsecured notes for a cash payment of $339
million, which brings year-to-date total debt principal repayments to $2.2
billion.

The Company experienced strong travel demand for the Labor Day holiday and
continues to experience strong revenue trends in third quarter 2022. Leisure
revenue trends remain elevated compared with 2019 levels and are currently
exceeding the Company's expectations for third quarter 2022. The strength in
advanced bookings offset softer close-in booking trends for business travel for
the period from late July through August 2022, relative to expectations.
Additionally, managed business revenue trends have improved, thus far, in
September 2022, relative to August 2022, with an estimated 8 to 10 point
sequential improvement, compared with their respective 2019 levels. July and
August 2022 managed business revenues were down approximately 26 percent and 32
percent, respectively, both compared with their respective 2019 levels. The
Company now expects third quarter 2022 managed business revenues to be down in
the range of 26 percent to 28 percent, compared with third quarter 2019 levels,
compared with its previous estimate to be down in the range of 17 percent to 21
percent. Although early in the booking curve, the Company continues to
experience strong revenue trends in fourth quarter 2022.


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The Company's 2022 cost and capacity plans remain stable and in line with
previous estimations, and its flight schedule was recently extended through
April 10, 2023. The Company continues to estimate full year 2022 capacity to
decrease approximately four percent, compared with 2019 levels.

The Company has a multi-year fuel hedging program to provide insurance against
spikes in jet fuel prices with significant fuel hedging protection in 2022. As
of September 8, 2022, the fair market value of the Company's fuel derivative
contracts settling in fourth quarter 2022 was an asset of approximately $163
million, which would bring the Company's full year 2022 fuel hedge benefit to
approximately $945 million. In addition, the fair market value of fuel
derivative contracts settling in 2023 and 2024 was an asset of approximately
$381 million and approximately $104 million, respectively.

Barring significant unforeseen events and based on current trends, the Company
continues to expect solid profits, excluding special items, in third quarter
2022, fourth quarter 2022, and for full year 20223.

As of September 8, 2022, the Company had cash and short-term investments of
approximately $14.4 billion, well in excess of debt outstanding. The Company's
adjusted debt4 to invested capital (leverage) is currently 48 percent, and it
remains the only U.S. airline with an investment-grade rating by all three
rating agencies.

The information furnished in this Item 7.01 shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or
otherwise subject to the liabilities of that section, nor shall such information
be deemed incorporated by reference in any filing under the Securities Act of
1933, as amended, regardless of any general incorporation language in such
filing, except as shall be expressly set forth by specific reference in such
filing.

1Economic fuel cost projections do not reflect the potential impact of special
items because the Company cannot reliably predict or estimate the hedge
accounting impact associated with the volatility of the energy markets or the
impact to its financial statements in future periods. Accordingly, the Company
believes a reconciliation of non-GAAP financial measures to the equivalent GAAP
financial measures for projected results is not meaningful or available without
unreasonable effort.
2Projections do not reflect the potential impact of fuel and oil expense,
special items, and profitsharing because the Company cannot reliably predict or
estimate those items or expenses or their impact to its financial statements in
future periods, especially considering the significant volatility of the fuel
and oil expense line item. Accordingly, the Company believes a reconciliation of
non-GAAP financial measures to the equivalent GAAP financial measures for
projected results is not meaningful or available without unreasonable effort.
3Projections do not reflect the potential impact of special items because the
Company cannot reliably predict or estimate those items or expenses or their
impact to its financial statements in future periods. Accordingly, the Company
believes a reconciliation of non-GAAP financial measures to the equivalent GAAP
financial measures for these projected results is not meaningful or available
without unreasonable effort.
4Adjusted debt is calculated as short-term and long-term debt, including the net
present value of aircraft rentals related to operating leases.



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Cautionary Statement Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking
statements include, without limitation, statements related to (i) the Company's
financial expectations and projected results of operations, including factors
and assumptions underlying the Company's expectations and projections; (ii) the
Company's plans and expectations with respect to capacity, including factors and
assumptions underlying the Company's plans and expectations; (iii) the Company's
expectations with respect to its fuel costs, premium expenses, hedging gains,
and the Company's related management of risks associated with changing jet fuel
prices, including factors underlying the Company's expectations; (iv) the
Company's plans and expectations related to repayment of debt; and (v) the
Company's expectations regarding demand for travel, including managed business
travel. These forward-looking statements are based on the Company's current
estimates, intentions, beliefs, expectations, goals, strategies, and projections
for the future and are not guarantees of future performance. Forward-looking
statements involve risks, uncertainties, assumptions, and other factors that are
difficult to predict and that could cause actual results to vary materially from
those expressed in or indicated by them. Factors include, among others, (i) the
impact of any negative developments related to COVID-19, fears or actual
outbreaks of other diseases, extreme or severe weather and natural disasters,
actions of competitors (including, without limitation, pricing, scheduling,
capacity, and network decisions, and consolidation and alliance activities),
consumer perception, economic conditions, fears of terrorism or war,
socio-demographic trends, and other factors beyond the Company's control, on
consumer behavior and the Company's results of operations and business
decisions, plans, strategies, and results; (ii) the impact of fuel price
changes, fuel price volatility, volatility of commodities used by the Company
for hedging jet fuel, and any changes to the Company's fuel hedging strategies
and positions, on the Company's business plans and results of operations; (iii)
the Company's dependence on its workforce, including its ability to employ
sufficient numbers of qualified Employees to effectively and efficiently
maintain its operations; (iv) the impact of labor matters on the Company's
business decisions, plans, and strategies; (v) the impact of governmental
regulations and other governmental actions on the Company's business plans and
operations; (vi) the Company's dependence on third parties, in particular with
respect to its fuel supply, and the impact on the Company's operations and
results of operations of any third party delays or non-performance; (vii) the
Company's ability to timely and effectively implement, transition, and maintain
the necessary information technology systems and infrastructure to support its
operations and initiatives; and (viii) other factors, as described in the
Company's filings with the Securities and Exchange Commission, including the
detailed factors discussed under the heading "Risk Factors" in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in
the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June
30, 2022. Caution should be taken not to place undue reliance on the Company's
forward-looking statements, which represent the Company's views only as of the
date this report is filed. The Company undertakes no obligation to update
publicly or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.

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