quest 2

2020 One Report One Team. All Heart.

2020 Southwest Airlines One Report 2

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

Our Triple Bottom Line

To illustrate our steadfast focus on a triple bottom line—our

People, Performance, and Planet—we highlight our citizenship

eforts each year in the Southwest One Report, an interactive electronic publication. The integrated One Report combines

knancial, corporate responsibility, and environmental reporting into a single comprehensiveﾛreport.1

2020 One Report

The importance of our citizenship commitment was underscored

by the events of an incredibly challenging year. In 2020, we

doubled down on commitments to our Employees, Customers,

Shareholders, suppliers, and communities. Our citizenship eforts give us an opportunity to invest in the People and places our

future depends on.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 3

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 Ogcer

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 afected the lives of many, and we sought to do right by our Employees, Customers, and communities in the face of these digcult circumstances. On the following pages, you can read more about our citizenship activities during 2020, and see how we

sought to align our eforts with our Heart for People. Welcome to this yearﾙs One Report.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 4

FORTUNE magazine

Ranked 11th (in 2020)

FORTUNE World’s Most

Admired Companies®

Named

Best Domestic Airline

Airforwarders Association

Designated a

Best for Vets: Employer

Military Times

Recognized as a

Top 50 Employer

Equal Opportunity Magazine

Won Best Customer Service

Program of the Year (Rapid Rewards® Program)

Best Loyalty Credit Card

Best Airline Redemption Ability

Freddie Awards

Named the

#1 U.S. Airline

(in 2020)

Wall Street Journal

Won Four Best Airline North America

Best Airline United States

Best Economy North America

Best Low Cost Airline North America

2020 Tripadvisor Travelers' Choice™ Awards for Airlines

Received a

100 on the Corporate

Equality Index in 2020

Human Rights Campaign Foundation

Named a

Top 100 Company

BetterInvesting Magazine

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 5

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 diference in our communities and protecting our resources. We listen to and learn from them,

seeking to address their interests in the One Report andﾛbeyond.

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

way we carry out our Purposeﾎconnecting People to whatﾙs important in their lives through friendly, reliable, and low-cost

airﾛtravel.

CSR/ESG topics according to our Stakeholders [Communities, Customers, Employees, Governments and Non-governmental Organizations (NGOs), Investors, and Suppliers]. The 2020 assessment examined 28ﾛtopics and helped guide the creation of the One Report. Topics were grouped into kve categories: Economic, Employees, Environment, Governance, andﾛSocial.

Based on Global Reporting Initiative (GRI) guidelines, Southwest identiked priority topics using a systematic process for Stakeholder engagement and feedback prioritization that consisted of:

� Evaluating relevant CSR/ESG topics

� Identifying internal and external Stakeholders

� Assessing the organizationﾙs impacts

� Evaluating the inluence on the Stakeholderﾛgroups

� Prioritizing topicsﾛﾛ

We engaged both internal and external Stakeholders to determine which ESG topics they perceive are most important to our business. We then consolidated topics raised through Stakeholder engagement inputs, assigned rankings, appraised signikcance of business impact for each topic, prioritized topics, evaluated the risk, and developed our key topics matrix (next page).

People, Performance, andﾛPlanet Our 2020 key topics assessment illuminated areas for potential opportunities to enhance our CSR/ESG reporting approach, and helped us align our CSR/ESG activities with the UnitedﾛNations Sustainable Development Goalsﾛ(SDGs), Global Reporting Initiative (GRI), and Sustainability Accounting Standards Board (SASB) reporting frameworks.

Key topics help us strategically address ESGﾛissues that matter most to our

business and ourﾛStakeholders.

Reporting Scope The 2020 Southwest One Report is

a snapshot of our corporate social

responsibility (CSR) eforts that fall under our People, Performance, and

Planet initiatives. The One Report also

covers our environmental, social, and

governance (ESG) eforts, and relects theﾛperiod of Jan. 1 to Dec. 31, 2020 (unlessﾛotherwiseﾛnoted).

The One Report covers only those

business activities for which Southwest

generally has complete control or

ownership. This report does not include

facilities primarily controlled by others,

such as airport terminal space, or

outsourced or subcontracted facilities.

Key Topics Southwest recognizes the importance of key topics in its CSR and ESG eforts, as it helps us strategically address ESG issues that matter most to our business and ourﾛStakeholders.

In 2020, Southwest completed a formal key topics assessment, conducted by an independent third party, to identify the most relevant

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

Employees Environment GovernanceEconomic Social

S ig n ifi c���� �f �����t to the business

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

2.01.5 2.5 3.0 3.5 4.0 4.5 5.0

Im p o rt a n c e t o e x te rn a l st a k e h o ld e rs

Re

AC

ET

IE

BD

SD

DP

SP

EOHT

BO CB

WM TE

Ph AB

EB

CR

CH FE

CM

Et

DE

EC FM

EP

EH

GE

Economic

Anti-Competitive

Behavior AB

Anti-CorruptionAC

Crisis ManagementCM

Economic PerformanceEP

Fleet ManagementFM

Indirect Economic

Impact IE

Sustainable ProcurementSP

Employees

Collective BargainingCB

Diversity Equity,

& Inclusion DE

Employee BenefitsEB

Employee Health

& Safety EH

Employee TurnoverET

Training & EducationTE

RecruitmentRe

Governance

Board DiversityBD

Board OversightBO

EthicsEt

Executive OwnershipEO

Social

Customer Health

& Safety CH

Data PrivacyDP

Human Tra�ckingHT

PhilanthropyPh

Supplier DiversitySD

Environment

Climate RiskCR

Environmental

Compliance EC

Fuel & EnergyFE

Greenhouse

Gas Emissions GE

Waste ManagementWM

2020 Southwest Airlines One Report 6

Governance2

The business and afairs of Southwest Airlines Co. (Southwest or the Company) are managed under the direction of the Companyﾙs Board of Directors (Board of Directors). The fundamental responsibility of the Board of Directors is to promote the best interests of the Company and its Shareholders byﾛoverseeing the management of the Companyﾙsﾛbusiness. Among other duties andﾛresponsibilities,ﾛthe Board of Directors is responsible for (i)ﾛoverseeing the selection, evaluation, development, and compensation of senior management; (ii) assessing major risks facing the Company and reviewing options to mitigate such risks; (iii) reviewing, approving, andﾛmonitoring signikcant knancial and business strategies and major corporate actions; and (iv)ﾛoverseeing the processes to maintain the utmost integrity andﾛproper management of theﾛCompany.3

Pursuant to Texas law, the Board of Directors is required to elect a President and a Secretary and may elect such other ogcers as the Board of Directors deems appropriate, which currently include, among others, the Company's Chief Executive Ogcer (CEO). The Company's CEO has responsibility for the general management and direction of the Companyﾙs business. The duties and powers of the Companyﾙs CEO and other ogcers are set forth in the Companyﾙsﾛbylaws.4

Stakeholder How We Engage

Employees � Employee surveys

� Company intranet SWALife

� Other internal communication channels

� Weekly podcasts from our Chairman and CEO

� Companywide Culture Committee

� Culture & Engagement Department

� Diversity, Equity, & Inclusion Department

Customers � Customer surveys

� Social media listening

� Customer call centers

� Customer emails

Suppliers � Supplier Diversity Commitment

� Online supplier portal

� ESG-focused questions in supplier RFPs

� Engagement with internal participants in the procurement process

� Engagement with external participants in the procurement process (suppliers)

Non-Governmental Organizations (NGOs)

Research and publications from the following NGOs help inform our citizenshipﾛapproach:

� Commercial Aviation Alternative Fuels Initiative (CAAFI)

� World Economic Forum's Clean Skies for Tomorrow Coalition

� Sierra Club

� Airport Cooperative Research Program (ACRP)

Airports/Government � Engagement with internal participants from Governmental Afairs Department

� Developing public policy positions intended to benekt our Employees, Customers, andﾛcommunities

Investors � Engagement with internal participants in Investor Relations Department

� Informal investor interviews

� Investor-focused standards such as Sustainability Accounting Standards Board

Regulators We take regulatory compliance seriously, including with respect to standards and requirements established by:

� Department of Transportation (DOT)

� Environmental Protection Agency (EPA)

� Federal Aviation Administration (FAA)

� Securities and Exchange Commission (SEC)

Communities � Employee volunteerism

� Charitable contributions and donations

� Nonprokt partnerships

� Community Relations Team

� Medical Transportation Grant Program (MTGP)

ESG Raters Additionally, we reviewed multiple sustainability reporting standards, and frameworks, and results from independent ESG research krms toﾛinform our reporting eforts, including:

� CDP (formerly Carbon Disclosure Project)

� S&P Global Corporate Sustainability Assessment

� Institutional Shareholder Services (ISS)

� Sustainalytics

� EcoVadis

To better understand the efects of our citizenship initiatives upon our business, weﾛalso conducted interviews with:

� Southwest Executive Leadership

� Southwest Citizenship Executive Steering Group

� Southwest Cross-Functional Working Groups

ESG Key Topics Matrix

Engagement with

Stakeholders resulted in

the prioritization ofﾛtopics.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 7

The Companyﾙs bylaws and other information about the Companyﾙs governance practices, Board of Directors, and ogcers are available on southwest.com in the Investor Relations section.

The Southwest Airlines Citizenship Executive Steering Group (CESG) provides input and guidance on social, economic, and environmental topics to the Companyﾙs CEO, President, Chief Financial Ogcer, and Executive Vice President of Corporate Services, all of whom contribute to the Companyﾙs policy development and decision-making eforts with respect to these topics. The CESG meets regularly and comprises Ogcers and Leaders from various departments throughout the Company. The CESG considers feedback from various Stakeholders and works collaboratively with other executive steering groups to take a holistic approach when considering social, economic, and environmentalﾛtopics. Other internal groups that address CSR and ESG actions and initiatives include our Social Topics Committee; Enterprise Risk Management Team; Diversity, Equity, and Inclusion Executive Steering Group; andﾛEnvironmental Steering Group.

Southwestﾙs Enterprise Risk Management (ERM) Team assists management in addressing the Companyﾙs risk portfolio by collaborating with internal Stakeholders to identify, evaluate, and document risk and mitigation eforts. The ERM Team conducts risk assessments, produces internal reports, deknes risk focus areas, and escalates critical risks to Executive Leadership.

Southwest is committed to continually improving the awareness and transparency of our governance of environmental and social topics. Some of our recent eforts in this regard include:

� Expanding disclosure of how our environmental stewardship goals will be compatible with our long-term strategy

� Enhancing integration of diversity, equity, andﾛinclusion (DEI) principles in our hiring andﾛdevelopment practices to support goals as outlined in the People section of the One Report

� Expanding governance reporting within the One Reportﾙs GRI General Disclosure section

The Board of Directors also recently updated its Compensation Committeeﾙs Charter to relect the Compensation Committeeﾙs existing practice of assisting the Board of Directors with its oversight of human resources policies and practices, including the Company's DEI philosophy, practices, and initiatives.

Southwest believes in a sustainable future where a balance exists between protecting the world for future generations and serving the interests of our Shareholders, Employees, Customers, and other Stakeholders, serving as good environmental stewards, fostering a creative andﾛinnovative workforce, and giving back to theﾛcommunities we serve.5

Employee Experience To create the best possible work environment and continue our investment in human capital, Southwest seeks to provide a stable work environment with equal opportunity for learning and personal growth. We focus on bringing the best People into the Southwest Family by investing in human capital with a competitive total rewards package and providing on-the-job training and encouragement to help Employees succeed. DEI has always been rooted in our Company values, and we strive for our Employee population to represent the diverse communities we serve.

Employees are treated with the same concern, respect, and caring attitude within our organization that they are expected to share externally with every Southwest Customer. Ourﾛstrategy for employment and labor practices is guided by our Executive Vice President Corporate Services, our People Department, and our Legal Department, which includes a section devoted solely to Labor and EmployeeﾛRelations.

Our People Departmentﾙs priorities include (butﾛare not limited to): attracting, developing, and retaining a diverse, talented workforce; providing opportunities for learning, development, career growth, and movement within the Company; evaluating compensation and benekts, and rewarding performance; investing in physical, emotional, mental, and knancial health and well-being of Employees; obtaining Employee feedback; maintaining and enhancing Company Culture; and communicating with the Board of Directors on aﾛroutine basis on key topics, including Executive succession planning. This work is carried out in collaboration with Southwest Airlines University (SWA U); Culture & Engagement; and Diversity, Equity, & Inclusion Departments.

We conduct Companywide surveys of our Employees throughout the year to assess their job satisfaction. Survey feedback allows us to better improve our ability to attract, develop, and retain Employees who will help us achieve Southwestﾙs business objectives. Our dedicated Employee Experience Team actively evaluates and maps the Employee Experience to identify opportunities to improve—such as onboarding

new Employees, identifying moments that matter to current Employees, and ofboarding Employees leaving theﾛCompany.

To create the best possible work environment, weﾛstrive to provide our Employees with advanced notice of signikcant operational changes through proactive communication. Forﾛexample, we provided notice to our Contract Employees (and their respective Unions), as well as Noncontract Employees when we made operational changes to our light schedule and policy updates related to mask requirements, refund changes, enhanced aircraft cleaning procedures, and Customer and Employee health declarations as a result of the COVID-19ﾛpandemic.

We implemented Company procedures that support and respect the protection of human rights within our sphere of inluence, and we provided notice and training opportunities to ourﾛEmployees on subjects like Human Tragcking awareness. We recognize lawful rights of Employees to choose or not choose collective bargaining representation. Our approach focuses on negotiating labor agreements that achieve positive outcomes for our People and Company.

Supply Chain To support our operation, we purchase goods and services from nearly 4,000 sources across multiple continents and countries, but the majority of our supply base and spend is in the U.S. domestic market since our network footprint is primarily as a North American carrier. We maintain relationships directly with various types of suppliers, including service providers, contractors, manufacturers, brokers, andﾛwholesalers.

We strive to provide Southwest with the highest quality products and services at the lowest total costs. While we have dedicated Teams within our Supply Chain Management Department, such as Fuel Management, Aircraft Maintenance, Technology, and Enterprise Supply Chain, we aim to manage our supply chain holistically and by utilizing analytically rigorous and dynamic approaches to optimize system egciency. Our Supply Chain Management Department monitors supplier performance, assesses risk and plans for

The Southwest Airlines Citizenship Executive Steering Group (CESG) provides input and guidance on social,

economic, and environmental topics.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

16,000 gallons

of hand

sanitizer

purchased

15,000+ gallons of facilities cleaning products purchased

1,864 acrylic glass barriers installed The total area covered

by the acrylic glass

barriers that we

installed is nearly

the wing area of 7

Boeing 737s

Fun fact:

BWI

FLL

Fun fact:

We distributed enough

masks that when lined

end to end reach as long

as our BWI-FLL flight

4,800,000+ surgical masks

distributed

443,400+ labor hours spent on

enhanced overnight

aircraft cleanings

Fun fact:

Labor hours

spent cleaning

aircraft

translates into

more than

3 round trips

to Pluto on

the spacecraft

New Horizons

labor hours spent cleaning tray tables and other aircraft surfaces between flights

44,500+

individual

2 oz. bottles

of hand

sanitizer

purchased

for Employees

422,000

13,600,000 pairs of gloves

purchased

Fun fact: We purchased

enough gloves

for the entire

population of Illinois

to receive a pair

Rising to the Occasion

As we say so long to a year full of the unexpected, let’s take a moment to reflect on

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 e�orts while procuring and distributing various

forms of personal protective equipment and supplies. Our Employees’ flexibility,

determination, and tenacity will be forever etched into the history of our Company.

2020 Southwest Airlines One Report 8

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 9

potential supply chain disruptions, and analyzes our supply chain spend so we can continuously improveﾛperformance.

Southwest is committed to maintaining our low-cost Leadership through efective and egcient procurement practices and spending our capital wisely. All suppliers are treated fairly and impartially during the evaluation and selection process. We use more than one selection process, depending on Company requirements and supply market conditions. Eachﾛselection process is focused on knding the best combination of quality, reliability, egciency, and service for Southwest at the lowest total cost. Internally, our Employees are expected to adhere to a Procurement Policy for Employees and we expect all internal and external participants in the procurement process to observe the highest standards of ethical conduct. We also have a supplier assessment questionnaire as a crucial part of the vetting process and expect suppliers to comply with applicable laws, including those regarding child and/or forced labor.

Our eforts to respect and protect human rights also extends to our supply chain. We partner with our suppliers to have a positive impact with the products and equipment we use in the skies, on the ground, and in our ogces. We seek to build sustainable relationships with our suppliers to help fulkll our operational needs, stimulate economic growth in the communities we serve, support small and minority-owned businesses, and satisfy the expectations of our Stakeholders. Our Supplier Diversity Program looks to build sustainable, diverse suppliers that are: Small, Small Disadvantaged, Women-owned, HUBZone,

Veteran-owned, Service-Disabled Veteran-owned, Minority-owned, Disabled-owned, and LGBT+- owned. A diverse workforce, which includes our suppliers, helps keep Southwest strong andﾛinspiresﾛunity.

At Southwest, we understand that our business impacts the markets we serve. We strive to positively afect these communities by way of our outreach and engagement initiatives to build longstanding relationships with our community partners and suppliers.

Diversity, Equity, and Inclusion Southwest recognizes, respects, and values diferences. By fostering a Culture that embraces and utilizes diversity, we promote Teamwork and innovation that contributes to our overall success. Since 1971, inclusion has always been at the Heart of Southwest Airlines, utilizing diversity of thought and experience. As the underdog creating a new way to ly, we needed everyone and their point-of-view to make that goal aﾛreality.

Southwest is committed to advancing diversity, equity, and inclusion (DEI), and as we continue our journey, we will maintain our eforts to cultivate a workforce and Leadership Team to relect the diversity of the communities we serve. We will alsoﾛsupport learning and development eforts that are democratized and inclusive ofﾛvarious career growth paths.

Our Diversity, Equity, and Inclusion Departmentﾙs vision is to cultivate a diverse and inclusive experience for all our People to thrive—Employees, Customers, and Partners. Theﾛdepartment leads actions and measures toﾛpromote an inclusive Culture andﾛenvironmentﾛby:

� Assisting with crafting the enterpriseﾙs DEIﾛvision

� Leading strong communication eforts to build shared language, meaning, and understanding

� Managing DEI as a strategic asset

� Auditing and monitoring equity

� Tracking and assessing progress andﾛimprovements

� Reporting to the Board of Directors

� Championing informal and formal conversations and perspectives on DEI

Southwest is built on a network of relationships. Building diverse, equitable, and sustainable relationships is a top priority. We believe our DEIﾛPromise is a key tool in nurturing inclusion.

� It’s about Team: The collaboration of thoughts, backgrounds, and experiences helps us achieve our common goal as a Team

� It’s about value: Our Employees value the ability to bring their authentic selves to work each day while meeting our Southwestﾛexpectations

� It’s about respect: Our pride in Southwest Airlines fuels our unity. The respect we show our Fellow Employees matters to our work, ourﾛTeam, and our Company

Southwest is committed to maintaining our low-cost Leadership through efective and egcient procurement practices and spending our capital wisely.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 10

Prior to 2020, we had been on a years-long journey to advance DEI and build the cultural competency of our organization. Keyﾛperformance indicators (KPIs) to track success of these eforts came from DEI feedback tools and activities, suchﾛas:

� Employee surveys

� DEI-focused “Pulse Point” intranet surveys

� Event attendance

� Participation in DEI training

We ofer anonymity for Employees to share if other Employees are not aligning to our Company values. We are committed to our DEIﾛPromise, and we do not tolerate discrimination, bullying, retaliation, orﾛharassment.

We have established a kve-year roadmap with respect to our objectives, so that we can harness the power of diverse backgrounds and experiences that will contribute to our overall success. In 2021, we seek to continue to build a solid foundation and cultivate shared understanding among all Employees. Asﾛwe move forward, we strive to understand and establish metrics to track resultsﾛand progress that will feed the organizational expectation andﾛprovide solid results for feedback.

Training and Development Southwest Airlines University (SWA U) provides a variety of training and curriculum options such as classroom training, distance learning, on-the-job training, mentoring, and blended learning for our Employees. We regularly evaluate skill sets needed by our Employees to stay competitive in an ever-changing, highly regulated environment.

Traditionally, our Employees received the majority of their training at our Dallas campus, but our training approach shifted in 2020 due to the pandemic. SWA U launched the Southwest Learning Center in June to provide Leaders and Employees with a clean, simple catalog of virtual training opportunities—addressing both required training needs and optional curriculum.

In 2020, we also launched Career Mobility as a centralized resource for our Employees to learn about the skills, experiences, and education needed for their next career step at Southwest. Career Mobility allows Employees

to meet with Career Mobility Partners who can direct them toﾛspecikc SWA U classes, temporary opportunities, or interview preparation techniques in order to increase diversity and vertical and lateral mobility for all SouthwestﾛEmployees.

In 2019, Southwest Airlines partnered with Gallup® to launch CliftonStrengths, which allows Employees to discover their own strengths and helps them empower others to develop theirs. As of March 1, 2021, we have introduced CliftonStrengths to nearly 90% of our departments and plan to expand the programﾙs reach to everyﾛEmployee.

Southwest believes our focus on diversity training enables enhanced Teamwork and innovation. Inﾛ2020, we partnered with Mind Gym to launch their Fearlessly Authentic curriculum, which supports our commitment to foster an inclusive environment where Employees embrace diferences and feel a sense of belonging.

Occupational Health and Safety Southwest Airlinesﾙ Operational Philosophy deknes key principles and expectations for Frontline Employees. Most importantly, and without compromise, we put Safety krst. Employees follow Company policies and procedures designed to enable operations at an acceptable level of risk for Southwest. Next, and only after operating safely, we balance low cost and Reliability, all delivered with world-class Hospitality. The Operational Philosophy provides a framework to operate safely, and in turn, position Southwest Airlines for success.

Our Safety Management System (SMS) is the foundation that enables Southwest to operateﾛsafely. The SMS framework has four mainﾛcomponents: Safety Policy, Safety Risk Management, Safety Assurance, and Safety Promotion. Each of these components is woven into our processes and establishes the structure for Safety at Southwest.

Southwestﾙs Safety Policy is relected in our Safety and Security Commitment. The commitment is a pledge of all Southwest Employees and Senior Leadership to the Safety and Security of our Customers and Employees—it establishes clear Employee expectations and associated accountability. Southwest Employees are expected to demonstrate their commitment toﾛSafety by:

� Following Company policies and procedures

� Identifying anything that could cause damage or injury

� Reporting hazards through Companywide reporting tools

� Knowing and understanding our Safety and Security Commitment

Our operational processes incorporate participation from Employees to help identify, develop, and implement procedural changes, including those specikc to mitigating hazards.

The Safety Risk Management function of our SMS provides a proactive, systemic, and standardized process designed to identify hazards and risks to the operation and workplace before they become injuries, accidents, or incidents. SafetyﾛRisk Management is designed to mitigate risk throughﾛthe implementation of efective riskﾛ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.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 11

The Safety Assurance function of the SMS relies on data and analytics to continuously measure and analyze the efectiveness of risk controls and overall Safety performance. Southwestﾛmonitors Safety performance using a variety of data including Employee reporting, aircraft information, Safety investigations, fatigue programs, and audits. Using the data, we conduct root cause analyses, execute audits, and perform procedural change analysis to recommend work process and equipment changes.

All areas of the SMS receive Companywide and department-specikc Safety Promotion support, which includes both training and communication related to Safety. Southwest has developed specikc job function training built around comprehensive standards intended to provide Employees the skills they need to operate safely.

Community Outreach Southwest's Community Outreach eforts consist of authentic civic and business relationships across the more than 100ﾛcommunities within the Southwest system. In 2020, we contributed to 95 national, state, and local membership organizations including, but not limited to, theﾛ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. We uniquely contribute to each community focusing on gaps and opportunities that will help drive economic, social, or environmental benekts.

We provide life-changing transportation for families in need and medical professionals during times of crisis, and humanitarian relief cargo shipments that aid in life-saving eforts. We advance DEI through many of our eforts and promote environmental stewardship through many conservation-focused projects. And we concentrate on building resilience in the communities we serve by engaging in civic and community partnerships and investing in disaster preparedness, recovery and response, and education.

We remain diligent in monitoring emerging societal issues and topics. Our response to these circumstances is based on a number of factors, including the potential impact on our Employees, brand and reputation, business operations, andﾛCustomers.

We regularly review our annual community contributions and continue to evaluate their efectiveness through impact reports and ongoing touchpoints with key partners and Stakeholders. We regularly solicit reports and metrics from our Partners and we continue to hone our own reporting process to further rekne our overall citizenship progress andﾛresults.

Safety Promotion

Includes training, communication, and other actions that create a positive Safety Culture within all levels of the Company

Safety

Policy

Safety Risk

Management

Safety

Assurance

Establishes our commitment to continually improve Safety, and defines the methods,

processes, and organizational structure needed to meet our

Company’s Safety goals

Determines the need for, and adequacy of, new or revised risk controls based on the

assessment of acceptable risk

Evaluates the continued e�ectiveness of risk controls and supports the

identification of new hazards

Safety Promotion

S a fe ty P

ol icy

Safety Risk M

a n a g e m e n t

Safety Assuran ce

Four Functions of Southwest's Safety Management System (SMS)

Economic Impact Jobs and benekts, returns on investment, business partnerships, and Customer Service and Safety are all ways in which our economic performance matters to our Employees, Customers, Shareholders, suppliers, and the communities in which we operate. We strive to continuously improve our Performance by focusing on our Purpose, and our People are dedicated to fulklling our Vision. Southwest is known for a triple bottom line approach that contributes to our Performance and productivity. Employees share in Southwestﾙs success with our ProktSharing Plan, the krst in the airline industry. This approach helps us retain Employees, reducing turnover costs. We expect our market presence to generate substantial savings for our Customers through the well-known ﾖSouthwestﾛEfectﾗ of invigorating competition by reducing fares and stimulating additional passenger tragc in the cities where we ly. ﾛ

Our commitment to the Planet helps us manage costs by using resources egciently and identifying emerging environmental trends and risks. In the air, we strive to responsibly 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ﾙs also good for our bottom line. Regarding our position on potential risks associated with climate change, in our CDP (formerly the Carbon Disclosure Project) response, we identiked risks associated with regulatory change and physical climate risks like extreme weather events as having the potential to create operational complexities. These complexities may afect airline operations, whichﾛcould result in impacts to operational and capital costs and ontime performance. ﾛ

Southwest has dekned contribution plans covering most of its Employees. The Company sponsors Employee savings plans under section 401(k) of the Internal Revenue Code of 1986, as amended. The Southwest Airlines Co. 401(k) Plan includes Company matching contributions subject to limits speciked by the Board of Directors, the Internal Revenue Code, and applicable U.S. Treasury regulations, and the Southwest Airlines Pilots Retirement Saving Plan has non-elective Company contributions. Inﾛaddition, the Company may contribute a percentage of its eligible pre-tax prokts, as dekned, on an annual basis to the Southwest Airlines Co. ProktSharing Plan (ProktSharing Plan)ﾎa dekned contribution plan. No Employee contributions to the ProktSharing Plan are allowed. The amount associated with the Company's dekned contribution plans expensed in 2020 was $561ﾛmillion.

Additionally, the Company provides post-retirement benekts to qualiked Retirees in the form of medical and dental coverage. Employees must meet service

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 12

and age requirements as set forth by the Company, orﾛasﾛspeciked in collective bargaining agreements with specikc workgroups. Employees meeting these requirements, as dekned, may use accrued unused sick time to pay for medical andﾛdental premiums from the age of retirement until ageﾛ65. All medical plans are unfunded, and Southwest pays benekts as they become due. Estimated future post-retirement benekt payments expected to be paid are $24ﾛmillion inﾛ2021, $25ﾛmillion in 2022, $24ﾛmillion in 2023, $24ﾛmillion in 2024, $26ﾛmillion in 2025, andﾛ$146ﾛmillion for the next kve years thereafter.6 Learn more about our post-retirement benekts on page 143 of theﾛCompany's 2020 Annual Report.

As a result of the COVID-19 pandemic, the Company entered into deknitive documentation with the United States Department of Treasury (the Treasury) with respect to funding support pursuant to the Payroll Support Program (Payroll Support) under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). During 2020, the Company received a total of $3.4ﾛbillion of relief funds under the CARES Act. As consideration for the Payroll Support, the Company issued a promissory note (the Note) inﾛfavor of the Treasury and entered into a warrant agreement with the Treasury (the Warrant Agreement), pursuant to which the Company agreed to issue warrants (each, a Warrant) to purchase common stock of the Company to the Treasury. During 2020, the Company provided a Note in the aggregate amount of $976ﾛmillion and issued Warrants valued at a total of $40ﾛmillion to purchase up to an aggregate of 2.7ﾛmillion shares of the Company's common stock, subject to adjustment pursuant to the terms of the Warrants. Pursuant to the terms of the Payroll Support Program agreement and the CARES Act, the Payroll Support funds could only be utilized to pay qualifying salaries, wages, and benekts, as dekned in the CARES Act. In addition, the CARES

Act provided a temporary tax holiday from collecting and remitting certain government ticket taxes for tickets purchased between March 28, 2020 and Dec. 31, 2020. ﾛ

Our market presence and low fares are designed to stimulate economies in cities where we ly. We also make investments in infrastructure and services that more broadly afect the communities we serve in terms of jobs, access to services, or other impacts. By working with local communities and regulators, we strive to maximize our total investments to benekt and enhance local and regional economies. Toﾛsteward our resources responsibly, we regularly review our annual investments and continue to evaluate their efectiveness through impact reports and ongoing touchpoints with keyﾛPartners andﾛStakeholders.

Environmental Stewardship We recognize the importance of environmental stewardship and believe itﾙs our responsibility to protect our Planet nowﾛand for future generations. We do our part to make environmentally responsible decisions; minimize our environmental impact by collectingﾛand analyzing information on our energyﾛconsumption, emissions, and waste; and improve the actions we take to mitigate ourﾛimpacts.

In 2020, a third-party assessment of Southwestﾙs greenhouse gas (GHG) emissions inventory was completed in accordance with the AA1000 Assurance Standard. This assurance engagement included our Scopeﾛ1, Scope 2, and Scope 3 GHGﾛemissions.7

As of Dec. 31, 2020, we are meeting our GHG emissions targets without using carbon ofsets.

Environmental Commitment We have evaluated and implemented ways we can improve environmental stewardship. We have aggressive eforts in place to reduce emissions intensity, manage waste, use fuel more egciently, and repurpose materials to minimize impact on landklls. This includes:

� Partnering with organizations such as Red Rock Biofuels and the Department of Energy's National Renewable Energy Laboratory (NREL) to support sustainable aviation fuel (SAF) development andﾛproduction

� Returning the Boeing 737 MAX 8 to service, ourﾛmost fuel egcient aircraft

� Expanding our Boeing order book through 2031, including 100 additional Boeing MAXﾛ7 aircraft, which are expected to replace less fuel-egcient Boeing 737-700 aircraft

� Continuing ongoing work of our Repurpose with Purpose program, which diverts materials and items traditionally destined for landklls while generating social and economic opportunities forﾛcommunities

During 2020, Employees from across the Company reviewed existing plans and developed new ideas to strengthen our environmental commitment:

� Focusing on the goal of carbon neutrality by 2050 and are looking to incorporate more Sustainable Aviation Fuel (SAF) partners and introduce carbon ofsetting into our operation8

� Improve our owned facilitiesﾙ environmentalﾛfootprint

� Create a sustainable inlight experience for ourﾛCustomers

� Continue our work with a variety of organizations, nonprokts, and government entities, including Airlines for America (A4A), whose work complements our eforts to advance our environmental commitment

� Invite individual and Corporate Customers to participate in any future carbon ofset program

Environmental Compliance Maintaining compliance with local, state, andﾛfederal environmental laws and regulations is fundamental to our environmental policy. We continually work to meet our annual goal of zero recorded environmental violations. OurﾛEnvironmental Services Team regularly conducts audits to review compliance, and works to improve our performance by utilizingﾛour environmental management systemﾛ(EMS), following environmental guidelines and procedures, implementing corrective action, andﾛtraining our Employees toﾛmeetﾛour compliance goals.

Our standard auditing protocol assesses a locationﾙs recordkeeping permit status, andﾛcompliance with requirements of regulatory plans such as Storm Water Pollution

We recognize the importance

of environmental stewardship and believe

it�s our responsibility to protect our

Planet now and for futureﾛgenerations.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 13

Prevention Plans, Spill Prevention Control, and Countermeasure Plans. We perform a visual walk-through inspection to conkrm that key compliance practices are enacted in each of the cities we serve. At all of our locations, we also track spills, audit kndings 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 efort to maintain compliance with environmental regulations, minimize costs and risk, and measure our eforts to improve our environmental performance. Southwestﾙs Leaders and Employees are also responsible for:

� Auditing our environmental vendors to verify their operations are compliant, and they demonstrate a commitment to environmentalﾛstewardship

� Continuing to improve our performance for reducing GHG emissions intensity

� Providing transparency of our environmental performance to our Stakeholders through public reporting and third-party verikcation and assurance of our GHG emissions inventory

Sustainable Aviation Fuel (SAF) Given that fuel is one of our largest expenses and the burning of it produces GHG emissions, we strive to reduce future emissions while continuing to provide safe, reliable, and afordable air transportation for ourﾛCustomers.

Southwest commits to explore environmental policies and practices of potential sustainable aviation fuel suppliers, specikcally with respect to mitigating deforestation and forest degradation in the production of sustainable aviation fuels.

Ehuents and Waste While these topics are outside the boundary of key topics for Southwest, we continue to report on our waste and recycling eforts as theyﾛminimize our environmental impact by:

� Conserving natural resources, including egcient water and raw materials use, while continuing to meet our operationalﾛrequirements

� Minimizing waste and pollution from our operations and preventing it where possible, while remaining true to the triple bottom line ofﾛPeople, Performance, and Planet

Public Policy Legislative and regulatory changes have the potential to limit our opportunities for growth, and government policies and legislation can have a deep impact on how we do business. OurﾛGovernmental Afairs Team works to stay on top of proposed statutory and regulatory changes and to educate a wide

range of policymakers and Stakeholder groups directly. We also present our views on these topics through trade associations, chambers ofﾛcommerce, and interactions with public ogcials at the federal level and in the states and communities we serve.

One trade association in which we participate is Airlines for America (A4A), which allows us to gain insight into core issues for the airline industry as a whole and to advocate jointly for regulations that support a healthy, competitive industry. We also benekt from the opportunity to share technical expertise and operational knowledge that leads to improved margins of Safety and Security, greater Employee and Customer Satisfaction, and better overall operational egciency and Reliability.

Southwest has adopted a policy that it will primarily use its agliated political action committee, the Southwest Airlines Co. FreedomﾛFund (Freedom Fund), knanced by voluntary Employee contributions, to support political campaigns. Company funds will be limited to supporting selected political campaigns at the state and local level in compliance with the laws of the relevant states and localities. We hold in high regard the responsibility of managing the Freedom Fund and being good stewards of our Employeesﾙ hard-earned dollars. We have a time-tested evaluation process when considering Freedom Fund contribution requests and our criteria for giving are evaluated annually. Additionally, the criteria, as well as all political campaign contributions from the Freedom Fund or by the Company directly, are approved by the Senior Vice President of Governmental Afairs and Real Estate, and overseen by Southwestﾙs Executive Vice President, Chief Legal and Regulatory Ogcer, with an annual summary ofﾛthose contributions provided to the Southwest Board of Directors. Allﾛpolitical contributions are intended to promote the interests of the Company and are not guided by any private political preferences of any Employee. All contributions by the Freedom Fund are disclosed via publicly available reports kled monthly with the Federal Election Commission. The Company strives to comply with all applicable federal, state, and local campaign knance restrictions and disclosureﾛrequirements.

Read more

How We Support the Global Goals

In 2020, contributions from the Freedom Fund totaled $145,000 to political committees at the federal level and $23,500 to political committees at the state and local levels. Moreover, the Company contributed $2,000 directly to political campaigns at the state and/or local level in one state (California). In 2020, the Company did not support or knance any state or local ballot measure before voters. At the federal level, no Company funds were used to support or knance any political campaign, nor did the Company support or knance any so-called ﾖSuper PACsﾗ orﾛany political committees organized under section 527 of the Internal Revenue Code. TheﾛCompany made no contributions to a politically-agliated 501(c)(4) organization inﾛ2020.

In 2020, A4A, our airline industry trade association, determined that $931,559 of the total dues paid by the Company to A4A were nondeductible lobbying expenses. Southwest also paid dues to several other national, state, and local trade associations, and chamber organizations, in which a portion of those dues were used by these organizations for nondeductible lobbying activities. However, in all cases, that portion was not more than $1,500 annually for each organization.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsAbout the One Report

2020 Southwest Airlines One Report 14

As you read through this section of the One Report, you might notice that we talk a lot about

ﾖourﾛPeople.ﾗ When we say ﾖour People,ﾗ 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ﾙd experience as part of the Southwest Team. So when we say ﾖourﾛPeople,ﾗ

youﾙllﾛknow what we mean: weﾙre a Company of our People, focused on serving ourﾛPeople.

Employees p15 Communities p23Customers p21 People Data Table p27

Provided more than $3 million in

support to help those affected by

the COVID-19 pandemic

$3 million

Successfully launched the Southwest

Promise, supporting the health and

well-being of our Customers and Employees

during the COVID-19 pandemic

Southwest Promise

Evolved our hiring and development

practices to support newly established

diversity objectives

Enhanced DEI Commitment

Putting People First

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 15

Employees Over the years, weﾙve seen how treating our Employees well does good things for the rest of our business. We provide them with great jobs and benekts, and a world-famous Culture where they are encouraged to draw on their unique

perspectives, skills, and experiences in their day-to-day jobs. Because authentic,

empowered Employees make great ambassadors, and that positively afects Customers, the world around us, and the success of our business. Itﾙs no wonder weﾙve always said Employees are the Heart of Southwest.

KEY TOPIC

STORIES

Employee COVID-19 Response

Deepening Our Commitment to Diversity, Equity, and Inclusion (DEI)

Sharing Our Company Values

Employee COVID-19 Response Southwest has a longstanding dedication to preparedness and emergency

response. As part of our preparedness mission, we provide resources to plan for

and respond to emergency events with conkdence and compassion to care for our Employees, Customers, and communities.

Throughout the years, our proactive planning and readiness

has helped us handle many kinds of emergencies. We have

Emergency Response Plans in place for aircraft accidents,

weather disruption events, natural disasters, terrorism, and

infectious disease outbreaks. While we never wish to enact such

plans, knowing we have them in place gives us peace of mind

and helps us respond quickly in emergency situations like the

COVID-19ﾛpandemic.

Itﾙs no secret COVID-19 brought the travel and tourism industry to a standstill and afected every related businessﾎfrom hotels

and entertainment events to restaurants and (of course) airlines.

Following the krst reports of possible COVID-19 cases in the U.S. in January 2020, Southwest pulled together a Disaster Response Team and began to coordinate with the U.S. Centers for Disease

Control and Prevention (CDC) and other health organizations

to develop a plan for how to best protect our Employees

andﾛCustomers.9

Throughout the pandemic, the Team has diligently met and stayed

in touch with government entities, and we continue to evaluate

our policies and procedures based on public health guidance,

GRI Index

403-2

403-3

403-4

403-5

404-2

UN SDG Alignment

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 16

scientikcﾛ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ﾛdistancing.

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

has tirelessly responded and adapted.

Keeping Our Employees Informed

Throughout the COVID-19 pandemic, Southwest has continued

to monitor information from the CDC and partner with medical

experts to make informed decisions. We want our Employees to

be equipped with accurate and timely information to perform

their jobs safely while exhibiting the warm Southwest Hospitality

for which we are known. To keep our Employees informed in the

face of a constantly evolving situation, we regularly communicate

with all of our Employees via internal communication channels

like SWALife (our internal intranet) and other department-

specikcﾛchannels.

In addition to his longstanding weekly podcast, our Chairman

and CEO Gary Kelly issued more than 50 video messages to

our Employees in 2020, providing updates from the very top on

the situation at hand, explaining the reasons for newly adopted

operating procedures, and providing strategic business updates.

This informative communication format is one we are still

producing for our Employees today.

All Hands on Deck Approach Part of weathering the COVID-19 pandemic has entailed

keeping our costs low as we wait for travel demand to recover.

Southwestﾛhas proudly avoided furloughs in its nearly 50-year history—an astonishing feat in and of itself that was thanks in

part to the passing of the Federal Government's Payroll Support

Program (PSP) extension in December 2020, and the hard

work of our Employees. As a result of the PSP extension, we do

not anticipate the need to conduct any furloughs or pay cuts

duringﾛ2021.10

Avoiding furloughs in 2020 can largely be attributed to our

incredible Employees. Our Employees redoubled their eforts to cut non-essential spending and reduce costs and were excited

to try new ideas, such as ofering cargo-only charter lights for the krst time in Company history. In true Southwest Spirit,

ourﾛPeople are always eager to make a diference, andﾛmany asked the question, “How can I help the Company during these

times?” Thousands upon thousands of our Employees stepped

up to help Southwest weather this storm. Whether it was

sharing and executing cost-saving ideas, helping kll needs in other departments, or sharing information about the Southwest

Promise with friends and families to encourage travel, our

Employees were there to help.

Another way our Employees supported Southwest was by

participating in diferent voluntary programs, like the Voluntary Separation Program 2020 (VSP). This option provided departure

packages for Employees who wished to permanently separate

from the Company. We also ofered eligible Employees the opportunity to take Extended Emergency Time Of (ExTO). Approximately 15,000 Employees, representing 25% of our

workforce, participated in one of these voluntary programs.

Theseﾛcrucial programs reduced our annual 2020ﾛsalaries, wages, and benekts expense by approximately $565 million.

Many Employees who couldnﾙt take 6, 12, or 18 months through ExTO could still consider taking a calendar month of Emergency

Time Of, or ETO. With ETO, Employees maintained benekts not typically ofered during a leave of absence (e.g., Travel Privileges). In addition, Time Of Without Pay (TOWOP) and Leave Without Pay (LWOP) could be taken in smaller time increments. Between

March and December 2020, the ETO, TOWOP, and LWOP

programs accounted for a savings of approximately $265 million.

The voluntary eforts many Employees chose, like ETO, ExTO, LWOP, TOWOP, and the VSP, helped tremendously to adjust

stagng in light of the reduced travel demand.

Weﾙre a Family at Southwest, so seeing the largest departure of Employees at one time in our history due to VSP was tough,

but it was the right option to ofer. We were grateful to have the resources to ofer our People the most generous voluntary program in our history, even in these digcult times. Our Hearts will always be with those Employees who helped Southwest by

taking the VSP; they will forever be a part of the Southwest Family.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

• Southwest began

COVID-19

communication

to Employees

�2019 2021�

• Disaster Response Plan activation

• International service halted

• Inflight service changes launched

• Flight schedule reductions began

• Emergency Time O­ launched

• COVID-19 was declared a pandemic

• Began collaborating with UT

Southwestern Medical Center (UTSW)

• Launched the Southwest Promise

• Announced that face coverings

would be required along with

updated physical distancing and

boarding procedures

• Launched a

self-declaration health

form for our Employees

• Began collaborating with

Stanford University School of

Medicine and Harvard

• Science-based decision to

resume selling all available seats

for travel beginning Dec. 1

• Southwest participated in Payroll Support Program (PSP)

• Launched seat blocking directive

• Began enhanced cleaning and temperature

screening at Southwest facilities

• Began using electrostatic disinfectant

spray in our cleaning procedures

• Announced voluntary

separation and extended

leave programs

• Introduced the Customer

Health Declaration

• Modified our

inflight service

• Continued to lobby in

Washington, D.C. on behalf of

our Company and Employees

for the PSP extension

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• PSP extension

passed

• Seat blocking

directive ended

2020 Southwest Airlines One Report 17

Going Virtual

Starting in March, many of our Corporate Campus and

Customer Support and Services Employees began working

remotely. Internally, this required some quick adjustments to

implement an updated work from home setup and platform

so our Employees had the right tools and resources to do their

jobs. Manyﾛdepartments, workgroups, and Teams pivoted from in-person events and activities to virtual. From department–wide

meetings to Team celebrations, many of our Employees embraced

the opportunity to utilize technology and get together virtually to

stay connected during this time!

Southwest Airlines University (SWA U), which provides training

and development opportunities for all Employees, also had to

quickly pivot how it supports our Employees. Like many public

schools and universities around the country, we canceled

in-person classes and transitioned to a virtual learning model—

allﾛin a matter of days. Topics traditionally taught in a classroom are now available online. Additionally, a wider range of learning

content is now immediately accessible, providing a more egcient experience than traditional in-person oferings as Employees can now complete the curriculum on their own time.

Employees Supporting Employees

Since its inception in 1990, the Southwest Airlines Employees

Catastrophic Assistance Charity (SWAECAC, or the Charity) has

ofered support to countless Employees sufering knancial hardships resulting from a catastrophic event in their lives.

Operating as a separate entity from Southwest, thisﾛ501(c)(3)

nonprokt organization has its own Board that consists of Employees from across our Company. ThisﾛBoard reviews applications for knancial assistance and since its inception has awarded more than $15 million to Employees and their families

in need. The bulk of SWAECACﾙs knancial support is thanks to theﾛgenerosity of Employee contributions, private donations, department fundraisers and events, and various other fundraisers

throughout the year—really making it an initiative that supports

Employees, by Employees.

In May 2020, the COVID-19 pandemic continued to cause

unexpected hardships for many people around the world,

including some of our Employees and their immediate families.

In response, SWAECAC made a COVID-19-specikc grant relief opportunity available for our Employees. The purpose of the

grant was to provide support due to loss of income as a result

ofﾛthe economic efects of the pandemic and to help ofset related knancial hardships. Applicants were required to substantiate pandemic-related hardshipﾎfor example, knancial strain due to loss of employment or furlough of a spouse/partner.

The Charity continued to accept and review the standard

applications for Personal Hardship, Disaster Assistance, and

Natural Disaster Urgent Assistance. COVID-19 relief was just an

additional way Employees could seek supplemental support

during these trying times. In August, the Charity also transitioned

to an online application process, helping improve both the

application experience for Employees and operational egciencies of the Charity. Over the course of 2020, the SWAECAC awarded

more than $489,000 in grants to support our Southwest Family

inﾛneed.

Southwest COVID-19 2020 Event Timeline

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

By Gender

Who We Are at a Glance

By Ethnicity / Race

Based on voluntary reporting by Employees.

(0.7%) American Indian or Alaska Native

(2.6%) Two or More Races

(1.5%) Native Hawaiian or Other Pacific Islander

(3.9%) Asian

(14.8%) Hispanic or Latino

(16.3%) Black or African American

(60.2%) White

42% Female

58% Male

GRI Index

405-1

UN SDG Alignment

2020 Southwest Airlines One Report 18

Deepening Our Commitment to Diversity, Equity, and Inclusion (DEI) In many diferent ways, 2020 was a trying year. People throughout the world were afected by a devastating global pandemic that had serious knancial 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ﾙs killingﾎand that of too many other Black Americans—highlighted the importance of continued

eforts 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

comprised of cross-functional internal Stakeholders and

subject matter experts who quickly evaluated our current

eforts and made additional recommendations to enhance ourﾛcommitmentﾛto DEI:

� Launched a Diversity Leadership initiative with representatives

from multiple departments

� Enacted processes to support diverse candidates and

interviewﾛpanels

� Enacted People development tools, including a formalized

mentorship and sponsorship program

� Launched a DEI education and training program with recurrent,

required DEI training for Leaders

� Adopted and designed a customized, unconscious bias training

called “Fearlessly Authentic” to serve as the foundational tool to

educate and equip all Employees in cultivating and nurturing a

diverse, equitable, and inclusive Culture

� Made talent advancement and management tools more

accessible to Leaders and Employees

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 19

conversation is a key lever in helping to foster an environment

ofﾛvalue and respect. These important conversations allow us to harness the best in each of us. When we can bring our full selves

to work, we, our Customers, and our business all thrive.

In 2020, the Southwest Diversity, Equity, and Inclusion Department

completed numerous workshops and listening forums through a

model of listen, learn, and act, to begin examining more deeply

the issues of racism, equity, and inclusion. Many workgroups

throughout the Company created psychologically safe spaces for

additional dialogues and discussions about these important

topics. We also distributed refreshed resources to educate

Employees and Leaders and guide our Employees in having

conversations about race and inclusion.

ﾖ For nearly 50 years, Southwest has exempliked a passion for putting People krst, which includes standing for diversity, equity, and inclusion. AtﾛSouthwest, we recognize, respect, and value diferences while fostering a Culture and workplace that embraces and utilizes our diversity. Throughoutﾛ2020, we had many important and crucial conversations around this topic that helped us identify additional ways we can improve our efortsﾎ an important part of how our Company will continue to become the most loved, most egcient, and most proktable airline in the world."

� Bob Jordan, Executive Vice President ofﾛCorporate Services

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ﾛrole

� Measuring progress in increasing diversity in Senior Leadership,

including our Senior Management Committee

� Engaging breadth of community Partners to leverage those

relationships as we source diverse talent

Additionally, the Southwest Board of Directors has committed to

increasing its diverse representation by 2025.11 Southwestﾙs DEI pillars and key focus areas are Career, Culture, Community, and

Customers. We strive to operationalize DEI in all of these areas.

Education, Bias Training, and Advocacy

Southwest has always stood for inclusivity, with the support of

Leaders, Employees, Diversity Council, Military Ambassadors, and

Presidentﾙ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

strides on initiatives that we believe will help us better advance

our eforts to combat racism and promote inclusivity.

Listen, Learn, and Act

DEI isnﾙt a new focus for Southwest, but the events of 2020 gave us an opportunity to look inward at ways we can do our part to

continue driving change and champion an inclusive workplace.

One of the krst ways we can drive change is by creating and inviting conversations. Fostering open conversations contributes

to our learning and understanding and allows us to be

comfortable with the uncomfortable feeling often associated with

conversations on race, equity, and inclusion. It is our view that

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

GRI Index

102-16

Values

Pride Teamwork E�ciency

Integrity Honesty Discipline

Humility Service with LUV Excellence

Me We Southwest

Have a strong work ethic, take initiative, and be accountable

• We are dependable and engaged

• We put our Hearts into our work

• We do not blame others

Practice civility, embrace Team over self, and be inclusive

• We assume positive intent

• We appreciate the strengths of our Cohearts

• We avoid tribalism

Don’t make the easy hard, keep costs low, and stay agile

• We embrace simplicity

• We look for ways to improve

• We are flexible and open to change

Act like an owner, choose to do right, and be courageous

• We do not walk past problems

• We spend Company money wisely

• We do not sacrifice our integrity for results

Speak up, be transparent, and tell the truth • We handle issues proactively

• We seek the truth and do not gossip

• We are straightforward and sincere

Be safe, focused, and reliable • We comply with policies, procedures, and regulations

• We consistently produce high-quality work

• We do not get distracted from our work

Don’t take yourself too seriously, keep perspective, and don’t be a jerk

• We keep our egos in check

• We understand it’s not all about us

• We bring a sense of fun to hard work

Practice Hospitality, live by The Golden Rule, and don’t be rude

• We make others feel welcomed, cared for, and appreciated

• We treat our Customers with respect

• We embrace and support our communities

Get results, win the right way, and kick tail • We do our best every day

• We are not complacent

• We know what it takes to win

How I Show Up How We Treat Each Other How Southwest Succeeds

2020 Southwest Airlines One Report 20

Sharing Our Company Values 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 kve decades, weﾙve remained steadfast in our Purpose to connect People to whatﾙs important in their lives through friendly, reliable, and low-cost air travel. As we prepared

for our 50th year in business, we took the opportunity to rekne our Company Values and further strengthen their alignment to

our Vision to be the worldﾙs most loved, most egcient, and most proktable airline.12

In 2020, we evolved our Vision to be the worldﾙs most egcient airline—to execute a consistent, reliable operation with an

uncompromising commitment to Safety and compliance.

Egciency has been a hallmark of our success through the decades and is a timeless theme that is part of our DNA.

Our updated Values are more clear, tangible, and actionable for

our Employees. Members of the Southwest Family were mindful

when making this update to capture the attitude of Southwest.

Today, more than ever, our Values speak to the Heart of who we

are and how we treat each other.

Our Culture is not easily emulated by our competitorsﾎitﾙs what makes Southwest unique—the power of a smile; someone going

the extra mile for a Coheart or Customer.

There's never been a more important time in our history to focus

on who we are, what we believe, and how we behave. Our Values

keep us true to our core while enabling us to scale for the future.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 21

Customers At Southwest, we take a diferent approach to Customer Service compared with most companies. We view each Customer as a valued, unique individualﾎand when youﾙre serving real People with varying needs and wants, a one-size-kts-all approach just doesnﾙ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ﾙs most loved, most egcient, and most proktableﾛairline.13

KEY TOPIC

STORIES

Southwest Promise

Southwest Promise The onset of the COVID-19 pandemic created many challenges for industries all over the

world, including airlines. Like so many other companies, Southwest quickly pivoted

in 2020 and adjusted parts of our business in order to respond to the pandemic.

Beginning in March 2020, we made multiple changes to our

policies and operations to better support the comfort and peace

of mind for our Employees and Customers: a commitment we referred to as the Southwest Promise.

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

electrostatic and anti-microbial spray treatments in the cabin,

physical distancing measures, modiked boarding procedures, and face-covering requirements for Employees and Customers.

The Southwest Team continues to evaluate its policies

andﾛprocedures.

We hope all of our Customers feel that when they are ready to

travel again, weﾙre ready to welcome them onboard with actions that support their well-being. Here is a closer look at the policies

and procedures that we implemented over the course of the

pandemic in 2020:

Cleaning around the clock � Both an electrostatic disinfectant and an anti-microbial spray

applied on every interior surface of the aircraft, killing viruses

on contact and forming an anti-microbial coating or shield

forﾛ30ﾛdays

UN SDG Alignment

GRI Index

403-1

403-2

403-3

403-4

416-1

SASB Index

TR-AL-540a.1

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 22

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

onboard lavatories and tray tables before every light

� 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-egciency particulate air) kltered air into the cabin while inlight, resulting in exchange of cabin air every two to three minutes. We use HEPA klters 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 loor markers to encourage

physical distancing in gate areas

� Boarding

� We boarded in smaller groups on only one side of the

boarding stanchions to allow for physical distancing

� Family boarding did not change, but we encouraged families

to respect the personal space of others during boarding

� Acrylic glass was installed at ticketing and gate counters

and baggage service ogces

Equipping Employees and Customers � Our Employees and Customers were required to wear face

coverings that kt snugly over the face, cover the nose and mouth, and secure under the chin

� We provided Passengers with sanitizing wipes

Consulting the experts

We continue to evaluate our policies and procedures based

on public health guidance, scientikc research, and advice from medical and aviation organizations, such as:

� Harvardﾙs T.H. Chan School of Public Health

� UT Southwestern Medical Center

� Stanford University School of Medicine

� U.S. Centers for Disease Control andﾛPrevention (CDC)

� The International Air Transport Association (IATA)

� The Boeing Company

� U.S. Department of Defenseﾙs U.S. Transportation Command

� Medical professionals and infectious disease experts who

weﾛretained to advise us during the pandemic

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 23

Communities Our focus on communities is a natural extension of Southwestﾙs People-centric approach to citizenship. We seek to connect People to whatﾙs important in their livesﾎand the communities where we live, work, and play are an essential part of what brings us

together. We believe that cooperation can advance our impact, so we partner with

like-minded people and organizations to promote resilience, civility, and peace in

ourﾛcommunities.

KEY TOPIC

STORIES

Community Outreach during COVID-19 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.

GRI Index

413-1

UN SDG Alignment

Community Outreach during COVID-19

Community Outreach Initiatives in Our Communities

In 2020, the COVID-19 pandemic provided us with new

opportunities to serve People when they needed it most.

Despite challenges to our business posed by the pandemic, the

Southwest Family rallied to knd a variety of ways to serve those impacted. Through our cumulative eforts to put our Heart in action, Southwest provided more than $3 million in support to

help those afected by the pandemic.

Helping Our Healthcare Heroes

Our crisis response eforts in 2020 included donating Southwest lights and cargo services for healthcare workers and their supplies. We provided more than 650 complimentary lights, valued at over $130,000, for medical personnel to assist in highly

impacted areas such as California, Illinois, Hawaii, New York,

andﾛthe Navajo Nation in Arizona.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 24

As one example, during the summer we partnered with

the Hawaii Emergency Management Agency to provide

transportation for 198 courageous medical professionals who

traveled to Hawaii to relieve local hospital employees. This relief

efort was an important component of the stateﾙs COVID-19 response plan and helped hospitals continue to provide

high-quality care to patients.

In true Southwest fashion, our Employees didnﾙt disappoint by welcoming and honoring these heroes. Our Teams at Oakland

International Airport (OAK) and Daniel K. Inouye (HNL) created

a unique gate experience for the medical professionals as they

boarded and landed.

We also donated our cargo services to humanitarian relief

organizations by shipping personal protective equipment

(PPE), ventilators, and other life-saving medical devices across

theﾛcountry.

Sharing Heart and Snacks While our community support often comes in the form of

complimentary lights, last year we also donated food products traditionally used during our inlight snack and beverage service.

With food shortages in many parts of the United States, we

identiked a unique opportunity to donate unused products from our normal inlight snack and beverage service. In July, weﾛprovided nearly 13 tractor-trailers full of product (valued at more than $655,000) to 15 food banks nationwide that are a

part of the Feeding America network. In addition to food banks,

theﾛdonated products supported hospitals, homeless shelters, senior centers, and childrenﾙs feeding programsﾎputting food 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.

Assisting Our Community Partners

To meet the needs of the diverse communities we serve, weﾛhave longstanding relationships with community outreach Partners

throughout the country. In May, we asked our Customers

for help by supporting three Southwest community partners

working to build resilient communities in the face of COVID-19—

Feeding America, American Red Cross, and Team Rubicon.

We initiated a giving campaign that allowed Customers to support

these partners through direct knancial contributionsﾎand any Customer who donated at least $25 was ofered 10x the Rapid Rewards® points for each dollar given. Through this campaign,

our Customers helped us raise more than $650,000 to support

organizations that provide vital services for those impacted

byﾛCOVID-19.

“At a time when the world was reeling from the efects caused by the COVID-19 pandemic, and the state of Hawaii was coping with the strain on our healthcare systems, Southwest's eforts bringing medical surge stagng was crucial in saving lives and mitigating the spread of the virus throughout ourﾛpopulation.ﾗ

ﾎ Luke Meyers, Hawaiﾙi Emergency Management Agency (HI-EMA) Administrator

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 25

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ﾛ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ﾛcountry.

In 2020, we adapted the program to help teachers and parents.

Virtual learning can be challenging for everyone involved,

andﾛ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 kfth-grade students (teachers and parents may be able to adjust this education programming to

engage other age groups). To access the curriculum, please visit

Our Community Curriculum.

We remain dedicated to serving our communities in unique

ways that are true to Southwest. We recognize thereﾙs more work to be done as we respond to and recover from the pandemic,

butﾛtogether, we can continue caring for our neighbors in need. Because at Southwest, we believe community is more than a

place—it's at the Heart of what brings us together.

“Today and every day, we believe a strong community is more than a place, it's at the Heart of what brings us together. We remain steadfast in our commitment to give back to the communities we serve, especially in a time ofﾛneed.ﾗ

� Laurie Barnett, Managing Director ofﾛCommunications and Outreach

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.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

GRI Index

413-1

UN SDG Alignment

2020 Southwest Airlines One Report 26

We believe in championing causes that matter most because we are more than

an airline, we are your neighbor.

Southwest has proudly supported the National Urban League

and 100 Black Men of America in their eforts to promote education, mentorship, and leadership development as they lift

up Black communities all across the country. In June, Southwest donated $500,000 through the Southwest Airlines Foundation

(a corporate-advised fund within the Silicon Valley Community

Foundation) to these important organizations.15

Our donation will be used to support long-term, sustainable

change through national strategies and local initiatives centered

on their impactful programs. Both organizations conduct crucial

work that help create a catalyst for change and encourage Black

men and women to realize their highest potential. Our donation

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 ofer additional support to these twoﾛorganizations.

As our Chairman and CEO Gary Kelly recently shared,

ﾖWe stand alongside our Black, Asian American, and Pacikc Islander Employees, Customers, and communities whose voices

will no longer be silenced. There is plenty of work to be done,

butﾛwe are committed to doing our part to driveﾛchange.ﾗ

Community Outreach Initiatives in Our Communities For more than two decades, Southwestﾙs Community Outreach eforts 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ﾙ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.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 27

People Data Table 2020 2019 2018 2017 2016

Employees

Active, full-time equivalent Employees at year-end16 56,537 60,767 58,803 56,110 53,536

Employees By Gender

Active, full-time equivalent Employees at year-end, by gender17

58 % Male 42 % Female

57 % Male 43 % Female

57 % Male 43 % Female

58 % Male 42 % Female

57 % Male 43 % Female

New Hires during the reporting period, by age and gender: under 30 years old

215 Male 133 Female

1,093 Male 787 Female

1,450 Male 1,038 Female

1,223 Male 940 Female

Not Reported

New Hires during the reporting period, by age and gender: 30-50 years old

254 Male 235 Female

1,530 Male 1,014 Female

1,871 Male 1,092 Female

1,831 Male 996 Female

Not Reported

New Hires during the reporting period, by age and gender: over 50 years old

67 Male 73 Female

379 Male 422 Female

444 Male 439 Female

405 Male 448 Female

Not Reported

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 44 %

25,864 43 %

24,924 42 %

23,561 42 %

22,133 41 %

Maintenance 3,012 5 %

3,233 5 %

3,021 5 %

2,960 5 %

2,951 6 %

Ground, Customer, and Fleet Services 19,457 34 %

21,013 35 %

20,800 36 %

20,175 36 %

19,497 36 %

Administrative (Technology, Management, Finance, Marketing, Clerical Personnel)

9,500 17 %

10,657 17 %

10,058 17 %

9,414 17 %

8,955 17 %

Benefits

Active and inactive Employees who participate in benefits program

More than 59,700

More than 64,800

More than 62,800

More than 59,800

More than 56,300

Employee benefit programs excluding 401(k) and ProfitSharing Plans and share-based compensation (accrued) 20

More than $ 1.3 billion

More than $ 1.3 billion

More than $ 1.2 billion

More than $ 1.1 billion

More than $ 1.0 billion

401(k) savings plan participation 92 % 91 % 91 % 91 % 92 %

ProfitSharing Plan participation All eligible Employees

All eligible Employees

All eligible Employees

All eligible Employees

All eligible Employees

Company contributions to 401(k) and ProfitSharing Plans $ 561 million $ 1.2 billion $ 1.0 billion $ 1.0 billion $ 937 million

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

2020 Southwest Airlines One Report 28

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 320,000

More than 780,000

More than 820,000

More than 660,000

More than 811,000

Customers

External Customer commendations More than 34,000

More than 88,000

More than 96,000

More than 107,000

More than 105,000

Ratio of External Customer commendations to personnel complaints

3:1 3:1 3:1 4:1 3:1

American Customer Satisfaction Index (ACSI) 79 79 80 80 80

U.S. Department of Transportation (DOT) Customer Satisfaction rating (consumer complaints per 100,000 enplanements)21

2.64 0.33 0.36 0.47 0.47

Percentage of reported flight operations arriving ontime 86.0 80.2 79.2 78.7 80.8

Number of mishandled bags reported per 1,000 enplaned bags

2.68 4.40 4.68 4.50 Not Reported

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 fundraising efforts

$ 1,300,000 $ 800,000 $ 950,000 $ 500,000 $ 675,000

Employee volunteer hours Nearly 75,000

More than 200,000

Nearly 190,000

More than 180,000

Nearly 150,000

Value of Employee volunteer hours22 More than $ 2,000,000

More than $ 5,800,000

More than $ 4,800,000

More than $ 4,300,000

More than $ 3,500,000

Social Management Approach

Employees represented by unions Approximately 83 %

Approximately 83 %

Approximately 83 %

Approximately 83 %

Approximately 83 %

Employee human rights training hours More than 61,000

More than 53,500

More than 44,000

More than 39,000

More than 51,000

Employees trained on human rights 56.2 % 48.9 % 43.9 % 40.4 % 44.4 %

Employees and business associates who acknowledged the Code of Ethics

More than 63,000

More than 64,000

More than 64,000

More than 63,000

More than 59,000

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPeople

Strengthened route network with launch

of service to six new destinations in 2020,

and have, as of April 27, 2021, opened or

announced our intention to serve an

additional 13 airports in 202124

New Destinations

Launched global distribution system (GDS)

access for business travelers through

partnerships with Travelport and Amadeus;

entered into an agreement with Sabre

Global Distribution System

Maintained #1 Marketing Carrier in

Customer Satisfaction per the U.S.

Department of Transportation (DOT) data23

#1 in Customer Satisfaction

We achieved our 47th consecutive year of proktability in 2019ﾎ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ﾙ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 efectively manage through

the challenging environment and thrive post-pandemic.

2020 Southwest Airlines One Report 29

Financial Preparedness �Our Enduring Strength

Economic Performance p30 Growing Our Robust Network p36 Performance Data Table p39

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 30

Economic Performance The COVID-19 pandemic had a signikcant year-over-year negative impact on travel demand and bookings in 2020, resulting in our krst annual net loss since 1972. Weﾛremain focused on emerging from this pandemic with the U.S. airline industryﾙs strongest balance sheet and business model to thrive post-pandemic.

KEY TOPIC

STORIES

2020 Financial Results

2020 Financial Results We entered 2020 positioned for a strong year. We were well-prepared with signikcant knancial 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

Reporting on Business Performance

Ten-Year Summary

GRI Index

201-1

201-4

UN SDG Alignment

In late February 2020, we began to experience a precipitous

drop in travel demand and bookings due to the COVID-19

pandemic. The situation escalated dramatically, and by

mid-Marchﾛ2020, tripﾛcancellations began to exceed new bookings. Weﾛexperienced our largest monthly decline in operating revenues in April 2020, down 92%, year-over-year,

when the pandemic spread and shelter-in-place orders and

similar restrictions were implemented throughout the country.

We took swift action to address the unprecedented decline in

travel and revenue by signikcantly reducing available seat miles (ASMs, or capacity)26, costs, and cash spending. Annualﾛ2020

capacity decreased approximately 34%, year-over-year.

Weﾛsuspended substantially all hiring; canceled or deferred hundreds of capital spending projects; modiked vendor and supplier payment terms; and aggressively evaluated all

non-essential spending. We implemented voluntary separation

and extended leave programs to better align stagng levels and overhead costs to reduced light schedules. Approximately 15,000 Southwest Warriors, or 25% of our workforce, participated

in one of these voluntary programs, which reduced our annual

2020 salaries, wages, and benekts expense by approximately $565 million. In total, we reduced annual 2020 cash outlays by

approximately $8 billion, compared with originalﾛplans.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 31

We quickly bolstered liquidity, raising approximately $18.9 billion

in capital, net of transaction fees, in 2020, including $13.4 billion

in debt issuances and sale-leaseback transactions, $2.2 billion

through a common stock ofering, and $3.4 billion of Payroll Support Program (PSP) proceeds under the Coronavirus Aid,

Relief, and Economic Security Act (CARES Act). We ended

2020 with total liquidity of $14.3 billion, consisting of cash and

short-term investments of $13.3 billion and a fully available

secured revolving credit facility of $1 billion. As of Dec. 31, 2020,

our unencumbered assets were worth approximately $12 billion,

including $10 billion in aircraft and $2 billion in non-aircraft

assets such as spare engines, ground equipment, and real estate.

In addition, we have signikcant value from our Rapid Rewards┊ loyalty program.

One key milestone in 2020 was the launch of our global

distribution system (GDS) initiative. We are now at industry-

standard processes with Amadeusﾙ GDS platform and Travelportﾙs GDS platforms: Apollo, Worldspan, and Galileo, allowing corporate travel managers the ability to book, change, cancel, and modify

reservations. This industry-standard process enables the Airline

Reporting Corporation to handle the reporting and settlement

of tickets booked through the GDS platforms. In December

2020, we reached a full-participation GDS agreement with

Sabre, planned to launch in 2021. The enhancement of our

GDSﾛchannel strategy complements our expansion of direct

connect via Airline Tarif Publishing Companyﾙs (ATPCO) New Distribution Capability (NDC) Exchange and existing SWABIZ

options, with the goal of distributing our everyday low fares

toﾛmore corporate travelers through their preferred channel.

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ﾛis why keeping costs low and spirits high at all times is so very important. By living Herbﾙs basic credo, we came into 2020 well-prepared with the U.S. airline industryﾙs strongest balance sheet and most successful business model—

with low costs that enabled low fares across a robust network of

point-to-point service and a strong presence in top leisure and

business markets. Even with our preparedness and swift response

to the pandemic in 2020, we are not standing still. In addition

to launching our participation in GDS, we are aggressively

pursuing new revenue streams by adding new airports to our

route network. We remain steadfast in managing costs and cash

spending, and we are focused on maintaining signikcant liquidity. Our primary knancial goals for 2021 are to preserve the strength of our balance sheet and investment-grade credit rating; arrest

cash operating losses; and achieve and sustain break-even or

better cash low and earnings as the airline business recovers. Theﾛpandemic persists and travel demand remains depressed, butﾛwe celebrate our 50th year of service in 2021 withﾛrenewed hope and optimism about the future of Southwest.27

Our Founder and Chairman Emeritus, Herb Kelleher, always reminded us: weﾛ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.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 32

Reporting on Business Performance Southwestﾙs Annual Report to Shareholders includes an opening letter to Shareholders from Gary Kelly, Chairman of the Board and Chief Executive Ogcer, and provides an overview of our business and knancial performance in 2020. The Annual Report also includes a discussion of our business, risks, Managementﾙs Discussion and Analysis of Southwestﾙs Financial Condition and Results of Operations, and audited knancial statements.

Read our 2020 Annual Report here.

Southwestﾙs Proxy Statement is provided to Shareholders in advance of the Annual Meeting of Shareholders. It contains Shareholder proposals as well as Executive compensationﾛinformation.

View the complete 2021 Proxy Statement here.

The COVID-19 pandemic had a devastating impact on our 2020 knancial performance, but we remain laser-focused on managing through this challenging time, and we intend to thrive post-pandemic.28

Load factor of

52.4%

59.7% year-over-year

decrease in operating revenue

$3.5 billion annual net loss,

excluding special items29

$1.1 billion net cash used in operations

Year-end cash and short-term investments of

$13.3 billion 56,000+ Full-time Employees30

718 Boeing 737 aircraft31

107 Destinations served,32

as of April 27, 2021, we have opened or announced our

intention to serve an additional 13 airports

in 2021

Our 2020 Performance: At a Glance

GRI Index

102-2

102-5

102-6

102-7

102-10

201-2

201-3

201-4

UN SDG Alignment

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 33

Ten-Year Summary Our 10-Year Summary shows consecutive years of proktability prior to the COVID-19 pandemic. Inﾛthe decade leading up to 2020, we signikcantly increased our cities served, further strengthening our robust network of point-to-point service. We increased our capacity and leet, 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ﾛpandemic had a devastating impact on our 2020 knancial performance, butﾛwe remain laser-focused on managing through this challenging time, and we intend to thrive

post-pandemic.33

GRI Index

201-1

UN SDG Alignment

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 34

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

income taxes

(4,256) 2,957 3,164 3,265 3,450 3,479 1,816 1,209 685 323

Provision (benefit)

for income taxes (1,182) 657 699 (92) 1,267 1,298 680 455 264 145

Net income (loss) $ (3,074) $ 2,300 $ 2,465 $ 3,357 $ 2,183 $ 2,181 $ 1,136 $ 754 $ 421 $ 178

Net income (loss)

per share, basic

$ (5.44) $ 4.28 $ 4.30 $ 5.58 $ 3.48 $ 3.30 $ 1.65 $ 1.06 $ 0.56 $ 0.23

Net income (loss) per share,

diluted

$ (5.44) $ 4.27 $ 4.29 $ 5.57 $ 3.45 $ 3.27 $ 1.64 $ 1.05 $ 0.56 $ 0.23

Cash dividends per

common share $ 0.1800 $ 0.7000 $ 0.6050 $ 0.4750 $ 0.3750 $ 0.2850 $ 0.2200 $ 0.1300 $ 0.0345 $ 0.0180

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

at period-end $ 10,111 $ 1,846 $ 2,771 $ 3,320 $ 2,821 $ 2,541 $ 2,434 $ 2,191 $ 2,883 $ 3,107

Stockholdersﾙ equity at period-end $ 8,876 $ 9,832 $ 9,853 $ 9,641 $ 7,784 $ 7,358 $ 6,775 $ 7,336 $ 6,992 $ 6,877

People Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 35

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

haul (miles) 1,002 980 988 991 1,001 994 978 966 941 939

Average stage length (miles)37 743 748 757 754 760 750 721 703 693 679

Aircraft utilization

(hours and minutes per day) 8:52 11:10 11:10 11:11 11:08 11:13 10:54 10:45 10:55 11:10

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 fare38 $ 141.72 $ 154.98 $ 151.64 $ 151.73 $ 152.89 $ 154.85 $ 159.80 $ 154.72 $ 147.17 $ 141.90

Passenger revenue yield

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

Operating revenue yield

per ASM40 8.75 ¢ 14.26 ¢ 13.75 ¢ 13.75 ¢ 13.66 ¢ 13.98 ¢ 14.20 ¢ 13.58 ¢ 13.34 ¢ 12.99 ¢

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

per ASM, excluding fuel 10.65 ¢ 9.62 ¢ 8.85 ¢ 8.88 ¢ 8.73 ¢ 8.60 ¢ 8.46 ¢ 8.17 ¢ 8.07 ¢ 7.73 ¢

Fuel cost per gallon,

including tax $ 1.45 $ 2.09 $ 2.20 $ 1.99 $ 1.90 $ 1.96 $ 2.97 $ 3.19 $ 3.32 $ 3.25

Fuel consumed, in gallons

(millions) 1,273 2,077 2,094 2,045 1,996 1,901 1,801 1,818 1,847 1,764

Active, full-time equivalent

Employees at year-end42 56,537 60,767 58,803 56,110 53,536 49,583 46,278 44,831 45,861 45,392

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

Ten-Year Summary

People Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 36

Growing Our Robust 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ﾛairports in 2021. We 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ﾛnetwork.

KEY TOPIC

Expanding Our Network Southwest ofers friendly, reliable, and low-cost air travel. Southwest is the leader in 23 of the top 50 U.S. metro areas,44,45 serving all of the top 100 domestic origin and destination pairs,

includingﾛco-terminal airports.46,47

GRI Index

102-6

102-7

201-1

203-2

STORIES

Expanding Our Network

Our Fleet

With a point-to-point network allowing for more direct routing,

approximately 72% of our Customers lew nonstop during 2020 compared with approximately 77% in 2019, with the

year-over-year decrease due to less capacity and nonstop lights in 2020, all due to the pandemic. As of Dec. 31, 2020, we served

667ﾛnonstop city pairs, compared with 720 as of Dec. 31, 2019, the most of any domestic airline in both years.48

We were excited to add new airports to our route map during

2020, by launching service to six new destinations: Hilo,ﾛHawaii; Cozumel, Mexico; Miami, Fla.; Palm Springs, Calif.; Steamboat

Springs, Colo.; and Montrose (Telluride and Crested Butte), Colo.

We also have, as of April 27, 2021, opened or announced our

intention to commence service in 2021 to 13 additional airports: Chicago OﾙHare International Airport; Sarasota Bradenton

International Airport; Colorado Springs Municipal Airport;

Savannah/Hilton Head International Airport; Houstonﾙs George Bush Intercontinental Airport; Jackson-Medgar Wiley Evers International Airport in Miss.; Santa Barbara Airport in Calif.;

Fresno Yosemite International Airport in Calif.; Destin-Fort Walton

Beach Airport in Fla.; Myrtle Beach International Airport in S.C.;

Bozeman Yellowstone International Airport in Mont.; Eugene

Airport in Ore.; and Bellingham International Airport in Wash.

Asﾛwe manage through the pandemic, we are pursuing additional revenue opportunities that utilize idle aircraft and Employees

to provide Southwestﾙs Legendary Customer Service to new, popular destinations. We are leveraging additional airports in or

near cities where our Customer base is large, along with adding

easier access to popular leisure-oriented destinations from across

our domestic-focused, point-to-point network.49

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

KONA, ISLAND OF HAWAII

LIHUE, KAUAI

HONOLULU, OAHU KAHULUI, MAUI

HILO, ISLAND OF HAWAII

BOISE ALBANY

OKLAHOMA CITY

AUSTIN PANAMA CITY BEACH

CHARLESTON

GREENVILLE-SPARTANBURG

TUCSON

LUBBOCK

AMARILLO

MIDLAND/ODESSA EL PASO

LITTLE ROCK

NASHVILLE

DALLAS (LOVE FIELD)

SACRAMENTO

OAKLAND

SAN JOSE

BURBANK LOS ANGELES

(LAX) ORANGE COUNTY ONTARIO

SAN DIEGO

SAN FRANCISCO (SFO)

BIRMINGHAM

LOUISVILLE

CLEVELAND

OMAHA

TULSA

RENO/ TAHOE

HARLINGEN/SOUTH PADRE ISLAND

PUERTO VALLARTA

CORPUS CHRISTI

ALBUQUERQUE

DES MOINES

MEMPHIS

CABO SAN LUCAS/LOS CABOS

ROCHESTER

WICHITA

PENSACOLA

NASSAU vi

PUNTA CANA

SAN JUAN

MONTEGO BAY

ARUBA i

CANCUN

GRAND RAPIDS

CHARLOTTE

MINNEAPOLIS/ ST. PAUL

PHOENIX

DENVER

INDIANAPOLIS COLUMBUS

RALEIGH/DURHAM

CHICAGO (MIDWAY)

FT. LAUDERDALE (MIAMI AREA)

DETROIT

HOUSTON (HOBBY)

SEATTLE/ TACOMA

LAS VEGAS

NEW ORLEANS

ST. LOUIS

MILWAUKEE

BUFFALO/ NIAGARA FALLS

ATLANTA

ORLANDO

FT. MYERS/NAPLES

JACKSONVILLE

TAMPA

WEST PALM BEACH

SAN ANTONIO

KANSAS CITY

BELIZE CITY vi

SAN JOSÉ vi LIBERIAvi

PORTLAND

WASHINGTON, D.C. (REAGAN NATIONAL)

RICHMOND

MANCHESTER

PROVIDENCE HARTFORD/SPRINGFIELD

NORFOLK/ VIRGINIA BEACH

BOSTON LOGAN

PHILADELPHIA

BALTIMORE/ WASHINGTON (BWI) WASHINGTON, D.C. (DULLES)

PITTSBURGH

NEW YORK (LAGUARDIA) LONG ISLAND/ISLIP

SALT LAKE CITY

SPOKANE

PORTLAND

EUGENE v

LONG BEACH

HAVANA i

GRAND CAYMANvi

CINCINNATI

PROVIDENCIALES, TURKS & CAICOS vi

STEAMBOAT SPRINGS (HAYDEN)

PALM SPRINGS

MIAMI

HOUSTON (INTERCONTINENTAL) iii

CHICAGO (O’HARE) i

MONTROSE (TELLURIDE)

SAVANNAH ii

JACKSON v

COLORADO SPRINGS ii

SARASOTA/BRADENTON i

SANTA BARBARA iii

FRESNO iv

COZUMELvi

For up-to-date system information, including scheduled nonstop and connecting service for any given Southwest® city, please visit Southwest.com® >Flight >Route Map.

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.

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.

2020 Southwest Airlines One Report 37

Capacity by Region (as of Dec. 31, 2020)

Desert/Mountain

Southeast

West Coast

South Central

Midwest

Northeast

International

Puerto Rico

20%

18%

17%

15%

16%

12%

1%

1%

DEN: 144 Denver

1

PHX: 94 Phoenix

5

ATL: 57 Atlanta

9

MDW: 120 Chicago Midway

2

HOU: 89 Houston Hobby

6

MCO: 55 Orlando

10

BWI: 118 Baltimore-

Washington

3

LAS: 85 Las Vegas

7

DAL: 94 Dallas Love Field

4

BNA: 67 Nashville

8

Top 10 Airports (daily departures on December 14, 2020)

System Map

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

718 51

Fleet total

207 planes

737-800

470 planes

737-700

41 planes

737 MAX 8

2020 Southwest Airlines One Report 38

Our Fleet We ended the year with 718 Boeing 737 aircraft in our leet, the largest Boeing leet in the world.50

On March 13, 2019, the Federal Aviation Administration (FAA)

issued an emergency order for all U.S. airlines to ground all

Boeing 737 MAX (MAX) aircraft. On Nov. 18, 2020, the FAA issued

ogcial requirements to enable airlines to return the MAX to service. We satisked applicable FAA requirements by modifying certain operating procedures, implementing enhanced Pilot

training requirements, installing FAA-approved light control software updates, and completing other required maintenance

tasks specikc to the MAX aircraft prior to returning the MAX to revenue service on March 11, 2021.

Our top priority is, and always will be, the Safety of our

Employees and Customers. Our Southwest Flight Operations

Leadership Team has reviewed and expressed conkdence in the MAX software and training updates. Additionally, aviation

regulators from countries around the world have reviewed the

changes to the aircraft and the FAAﾙs new requirements.

At Southwest, we only operate Boeing 737 aircraft, and

our Pilots are highly trained and experienced at lying the aircraft. Before the MAX was grounded, Southwest Pilots

lew almost 40,000 lights on the aircraft, which represents more than 89,000 light hours. Prior to returning the MAX to revenue service, active Southwest Pilots completed additional

FAA-required light training in one of our nine 737 MAX 8 simulators and completed additional FAA-required computer-

based training covering MAX procedures. We also required

active Pilots to retake our original 737 MAX 8 computer-

based diferences training as a refresher to complement the FAA-required training. Additionally, we conducted more than

200ﾛreadiness lights on our MAX leet and completed the software updates and thousands of hours of work and inspections

before any of our Customers once again boarded a Southwest

737 MAX 8.

After completing each of these important milestones, we were

thrilled to return the MAX to revenue service on March 11, 2021.

We remain conkdent in the MAX, and it is our growth aircraft for 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 light deck capabilities, a quieter engine, and is approximately 14% more fuel-egcient.52

Southwest recently restructured our delivery schedule for MAX

aircraft with The Boeing Company, including the selection of

the 737 MAX 7 aircraft as the successor aircraft to its 737-700

model. Southwest added 100 krm orders for 737 MAX 7 aircraft, in addition to adding 155 MAX options through 2031. This

agreement underscoreﾙs Southwestﾙs commitment to continued modernization of our leet with more fuel-egcient and climate- friendly aircraft.

Fleet Composition

GRI Index

102-7

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

2020 Southwest Airlines One Report 39

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) %

Operating revenue yield per ASM (cents)57 8.75 14.26 (38.6) %

Operating expenses per ASM (cents)58 12.43 12.38 0.4 %

Aircraft at end of period59 718 747 (3.9) %

Average age of fleet 12 12 –

Active, full-time equivalent Employees at year-end60 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)

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPerformance

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ﾙs peak travel season, Southwest

operated more than 4,000 weekday departures. Even small, incremental improvements in energy

egciency, waste reduction, or conservation are multiplied thousands of timesﾎ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ﾎone light at a time.

2020 Southwest Airlines One Report 40

Attending to the Planet

Energy p43Environmental Stewardship p41 Waste p47 Planet Data Table p49

In 2020, 1.29M gallons were saved for a

12,632MT reduction in CO 2 e by using

our Central Monitoring System

Reduced CO 2 e

Southwest has invested more than

$630 million in fuel efficiency

improvements since 2002

More than $630 million in Smart Investments

In 2020, we repurposed

nearly 140,000 pounds

of leather seat covers

Nearly 140,000 pounds repurposed

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 41

Environmental Stewardship We seek to promote a better, healthier Planet, but we recognize we canﾙt accomplish it alone. Protecting our Planet for generations to come is going to require a joint efort 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

KEY TOPIC

Strengthening Our Commitment to the Environment Our Purpose at Southwest is to connect People to whatﾙs important in their lives through friendly, reliable, and low-cost air travel. It serves as our Companyﾙs Heartbeat and keeps us mindful of our impact on those around us. Living out our Purpose means doing things

right across our operation: serving Customers with a Servantﾙs Heart, championing communities where we live and work, and protecting and respecting our Planet for

future generations to come.

SASB Index

TR-AL-110a.2

UN SDG Alignment

STORIES

Strengthening Our Commitment to the Environment

For years, we have evaluated and executed ways we can improve

environmental stewardship across our airline. We have eforts in place to reduce emissions intensity, manage waste, use fuel more

egciently, and repurpose materials to minimize the impact on landklls. Eforts include:

� Partnering with diferent 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 to service the Boeing 737 MAX 8, our most

fuel-egcient aircraftﾛ

� Expanding our Boeing order book through 2031, including

100ﾛadditional Boeing MAX 7 aircraft, which are expected to replace less fuel-egcient Boeing 737-700 aircraft65

� Continuing the ongoing work of our Repurpose with Purpose

program which diverts materials and items intended for

landklls while generating social and economic opportunities forﾛcommunities

GRI Index

302-1

302-2

302-3

302-4

302-5

305-1

305-2

305-3

305-4

305-5

305-6

305-7

*Filmed pre-COVID-19

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

In harmony with these eforts, Southwest also continues to align with A4A in the trade associationﾙs strategies to address the impacts of aviation on the climate. This includes aligning with

industry-wide goals for emission reduction and building our own

plans for achieving carbon neutrality by 2050.67

The carbon neutral goal is an ambitious one, and it will take all

airlines, government, airframe and engine manufacturers, and

the oil and gas industry working together to achieve. It will take

the advancement of technology in engine and airframe design;

the governmentﾙs commitment to a modernized air tragc management system and needed infrastructure improvements;

support and incentives for afordable and scaled SAF development and production; and airlines working to modernize leets for further fuel egciency and reduced emissions.

We have a responsibility to the environment and thatﾙs something we take seriously. At Southwest, our Heart doesnﾙt just give back, it gives forward, and we recognize conservation can be more

impactful when we all work together for a more sustainable

future. Because the People we serve and the places we call home

are more than just parts of our operationﾎtheyﾙre at the Heart of who we are.

2020 Southwest Airlines One Report 42

“Doing the right thing is about being a good steward of the environment. Itﾙs a win-win: whatﾙs good for our business is also good for our Planet. Weﾙre proud of our environmental accomplishments and weﾙre ready to do more. Establishing a goal to be carbon neutral by 2050 is an excellent and logical next step, and weﾙre excited to continue our journey toward increased environmental sustainability.”

� Tom Nealon, President Southwest Airlines

We recognize global citizenship is not a kxed destination; noﾛcompany ever truly ﾖarrivesﾗ as an environmental steward. True citizenship demands ongoing iteration and improvement

as circumstances in the world around us change and afect our business. Thatﾙs why in early 2020, we further concentrated our efort to knd new ways to reduce our environmental footprint. This includes an intention to increase the usage of sustainable

aviation fuel, introduce carbon ofsets where they make sense, and improve our recycling eforts inlight and on the ground.66 Throughout 2020, we brought together Employees from across

the Company who spent time collectively reviewing existing plans

while developing new ideas to strengthen our commitment to

theﾛenvironment:

� Focusing on a goal of carbon neutrality for our emissions by

2050. Toﾛaccomplish this, weﾙre looking to incorporate more sustainable aviation fuel partners and introduce carbon

ofsetting into our operation

� Purchasing renewable energy certikcates (RECs) equal to the electricity consumption at our Headquarters campus, while

working to develop a comprehensive, longer-term renewable

energy strategy for our corporate facilities

� Continuing our work with a variety of organizations, nonprokts, and government entities, including Airlines for America

(A4A), whose work complements our eforts to improveﾛour environmental sustainability

� We will remain committed to improving our environmental

footprint at our owned facilities and creating a sustainable

inlight experience for our Customers. We will continue to explore repurposing and upcycling options for items including

aircraft seat leather

� We will invite individual and Corporate Customers to join

the efort to show kindness to our Planet. Whether through volunteer opportunities or purchasing carbon ofsets for travel, we want to provide options where People not only can buy-in

philosophically, but do their part

At Southwest, our Heart doesn�t just give back, it gives forward, and we

recognize conservation can be more impactful when we all work together

for a more sustainable future.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 43

Energy Conserving energy is good for everyone. Itﾙs good for our businessﾎwe save money on fuel and electricity. Itﾙs good for our Customersﾎit helps us keep their fares low. Andﾛby allowing us to use natural resources more egciently, itﾙs great for our Planet. In our opinion, knding new ways to conserve energy isnﾙt just a smart choice; itﾙs an obvious one!

KEY TOPIC

Building Energy 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 of air conditioning equipment, vending machines, freezers/refrigerators, and interior lights in unoccupied areas.

ThisﾛTeam also balanced the proper amount of air conditioning equipment operating forﾛthe number of People and Teams who still reported to campus.

STORIES

Building Energy

Fuel Egciency and Greenhouse Gas Emissions

We ventilate every area of the building daily, even the unoccupied

areas. At night, we stagger the start time for air conditioning

equipment in the areas that are unoccupied during the day.

Byﾛventilating these areas for a few hours each night, we maintain a healthy building. This does use energy but we chose to do

thisﾛat night when the heat loads in the building are lower. Byﾛstaggering the start times throughout the night, we minimizeﾛour total energy footprint.

Along with the energy savings measure that this Team

implemented, we also had to address COVID-19.

From the beginning, we followed the U.S. Centers for Disease

Control and Prevention (CDC) and The American Society of

Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)

guidelines to ventilate the buildings as much as possible.

This meant eliminating the Demand Controlled Ventilation

strategy, which is an energy savings strategy that allows for the

proper amount of outside air ventilation for any given indoor

environment condition. We opened up the outside air intake as

much as possible on all of our equipment. This new ventilation

strategy was implemented for the health of all Employees

working on campus.

GRI Index

302-4

302-5

UN SDG Alignment

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 44

UN SDG Alignment

Fuel Egciency and Greenhouse Gas Emissions Jet fuel is our largest energy source. As a result, it is one of our largest expenses and our single greatest source of emissions. We are always looking for opportunities to increase

fuel egciency and lower our greenhouse gasﾛemissions.

Fuel Egciency Because of the direct relationship between our fuel consumption

and the cost associated with that consumption, we are

self-motivated in the pursuit of multiple fuel egciency initiatives. These initiatives help us to minimize fuel consumption and

emissions, as well as maintain a low-cost advantage in the

airline industry. Since 2002, Southwest has invested more than

$630ﾛmillion in fuel egciency improvements, excluding new aircraft purchases. These initiatives include routinely performing

engine washes, utilizing ground electric power while aircraft

are parked at airport gates, and reducing ground idle speeds for

aircraft in our leet.

While we continued to invest in fuel egciency improvements, in March 2019, we were required to remove the Boeing 737

MAX 8, our most fuel egcient aircraft, from service. On Nov. 18, 2020, the Federal Aviation Administration (FAA) issued ogcial requirements to enable airlines to return the MAX to service.

We satisked applicable FAA requirements by modifying certain operating procedures, implementing enhanced Pilot training

requirements, installing FAA-approved light control software updates, and completing other required maintenance tasks

specikc to the MAX aircraft. Following more than 200 readiness lights completed over several months, the MAX was returned to revenue service on March 11, 2021. The MAX 8 aircraft are 14%

more fuel egcient than our 737-800 aircraft, and their return to service is a welcome addition to our eforts to operateﾛegciently. Southwest is investing over $12 billion in krm aircraft orders for the Boeing 737 MAX to improve fuel egciency and reduce carbon emissions.

In 2020, we experienced a year-over-year fuel egciency improvement of 7.4% when measured in available seat miles

(ASMs)68 per gallon of jet fuel consumed. This improvement

was in part the result of operating fewer of our oldest, least

fuel-egcient aircraft as a result of capacity reductions due to the COVID-19 pandemic. In our One Report we have historically

reported our fuel egciency on a revenue ton mile (RTM)69 per gallon of jet fuel consumed basis. The RTMs/gallon egciency metric relies on both the egciency of our leet and the revenue tragc carried. The COVID-19 pandemic depressed the demand for air travel, and we experienced load factors70 that were

considerably lower than historical levels. As travel demand

returns toward pre-pandemic levels, our fuel egciency measured on a RTMs/gallon basis is expected to improve.71

GRI Index

302-1

302-2

302-3

302-4

305-1

305-2

305-4

305-5

SASB Index

TR-AL-110a.1

TR-AL-110a.2

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Scope 1 Emissions Breakdown

Aircraft & Fuel

Consumption

12,550,489

Natural Gas

Consumption

6,167

Ground Support

Equipment (GSE)

Fuel Consumption

35,328

Total Emissions

(metric tons CO 2 e)

12,591,984

2020 Southwest Airlines One Report 45

APU utilization

1.75 million gallons

Electronic flight bags

5,000 gallons

Fuel and flight planning

16 million gallons

2020 Incremental Jet Fuel Conservation

Greenhouse Gas Emissions

To better understand our environmental impact and increase the

transparency of our operations, we have voluntarily tracked and

reported our greenhouse gas (GHG) emissions since 2009.

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 efects of the COVID-19 pandemic. Additionally, emissions intensity per ASM72 improved in 2020, primarily as a

result of operating fewer of our oldest fuel-egcient aircraft due to capacity reductions along with lower load factors73 resulting

from the COVID-19 pandemic. Signikcantly lower load factors 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

was lower in 2020. This change in work location resulted in lower

emissions from our electricity and natural gas consumption.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 46

Historic CO 2 e

Intensity Ratios (calculated using

Scope 1 & 2 emissions)77

0.125

0.150

0.175

0.200

0.225

0.250

1.25

1.50

1.75

2.00

2.25

2.50

RPM & ASM

RTM

2.07 RTM

0.233 RPM

0.122 ASM

2013 2014 2015 2016 2017 2018 2019 2020

RPM Intensity Ratio

(metric tons CO 2 e/1,000 RPMs)78

RTM Intensity Ratio

(metric tons CO 2 e/1,000 RTMs)79

ASM Intensity Ratio

(metric tons CO 2 e/1,000 ASMs)80

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 47

Waste At Southwest, we donﾙt think that throwing away resources that could be repurposed, reused, or recycled is a very smart way to operate a businessﾎand it certainly isnﾙ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ﾛwaste stream so that we can better preserve our Planetﾙs knite natural resources.

KEY TOPIC

Repurpose with Purpose At Southwest, our Heart doesnﾙt just give backﾎit gives forward. As an airline, weﾛrecognize our business has an impact on the world around us, both good andﾛbad. We want to do our part to protect the world for futureﾛgenerations.

STORIES

Repurpose with Purpose

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 landklls. In 2020, we repurposed nearly 140,000ﾛpounds of used aircraft seat covers through Repurpose with Purpose.

UN SDG Alignment

GRI Index

306-2

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 48

We are honored to partner with Help Heal Veterans and other

organizations dedicated to supporting and championing our active

and retired military.

In 2020, nearly

of leather seat covers

were repurposed.

140,000 pounds

Best of all, the program has a positive social impact while limiting

waste. By turning leather seat covers, engine parts, and life vests

into new, useful products, the program supports Customers and

communitiesﾎhelping provide employment, skillsﾛtraining, and other social benekts.

In November 2020, we teamed up with one of our Repurpose

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ﾛ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 ofer important therapeutic and rehabilitation benekts. Help Heal Veterans works with clinicians and veterans to make sure that the kits address

veteransﾙ unique needs, and the kits often become part of formal rehabilitation treatment plans.

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.

We are honored to partner with Help Heal Veterans and other

organizations dedicated to supporting and championing our

active and retired military. We believe in living responsibly,

respecting our resources, and sharing our Heart with others.

With respect, honor, and gratitude, Southwest thanks all veterans

for their bravery and service. To learn more about the Help Heal

Veterans organization, please visit their website at healvets.org.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

2020 Southwest Airlines One Report 49

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

Production activity (revenue ton miles (RTMs))81 6.1 billion 14.6 billion 14.8 billion 14.4 billion 13.9 billion

Intensity ratio (MWh/1,000 RTMs)82 8.16 5.56 5.47 5.52 5.57

Water consumption (gallons)83 83 million 95 million 99 million 85 million 83 million

Intensity ratio (gallons/Employee)84 Nearly 1,500

Nearly 1,600

Nearly 1,700

More than 1,500

More than 1,500

Greenhouse Gas Inventory (Scope 1 and Scope 2 Emissions)

Scope 1 emissions (metric tons of carbon dioxide equivalent (CO 2 e))85 12,591,984 20,532,323 20,537,710 20,148,910 19,664,622

Scope 2 emissions (metric tons of CO 2 e)86 38,334 44,783 46,972 51,634 53,264

Total Scope 1 and Scope 2 GHG emissions (metric tons of CO 2 e) 12,630,318 20,577,106 20,584,682 20,200,544 19,717,886

Intensity ratio (metric tons CO 2 e/1,000 RPMs)87 0.233 0.157 0.154 0.157 0.158

Intensity ratio (metric tons CO 2 e/1,000 ASMs)88 0.122 0.131 0.129 0.131 0.133

Intensity ratio (metric tons CO 2 e/1,000 RTMs)89 2.07 1.40 1.39 1.41 1.42

Greenhouse Gas Inventory (Scope 3 Emissions)90

Waste generated in operations—waste to landfill and burned for energy recovery (metric tons CO

2 e)

1,500 2,200 2,100 1,900 2,700

Employee commuting—estimate based on survey (metric tons CO 2 e) 118,300 151,400 147,200 137,600 137,200

Other Air Emissions91

NO X emissions (tons) 7.1 7.1 6.8 7.1 7.1

SO X 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

Fuel efficiency (RPMs/gallon)93 42.3 63.2 63.7 63.1 62.5

Fuel efficiency (RTMs/gallon)94 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 25 million

More than 25 million

More than 25 million

More than 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, and cardboard (tons)

Nearly 950

Nearly 1,600

Nearly 3,000

More than 3,000

More than 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

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsPlanet

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, and services

Reporting on Business Performance

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

Expanding Our Network

102-8 Information on Employees and other workers

People Data Table

102-9 Supply chain Our Approach to Supply Chain

102-10 Significant changes to the organization and its supplyﾛchain

Our Approach to Supply Chain

Reporting on Business Performance

2020 Southwest Airlines One Report 50

Reporting Frameworks Since 2009, we have used the Global Reporting Initiative (GRI) to guide our disclosures in the One Report. In an efort to continue to provide our Stakeholders with increased transparency, 2020 marks the krst 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 eforts 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

knancialﾛinformation.

GRI Content Index

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Organizational Profile (continued)

102-11 Precautionary principle orﾛapproach

Southwest has not adopted the precautionary principle. For Southwest, adoption of the principle would apply primarily to potential harm related to use of fossil fuels and carbon emissions. Whileﾛ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ﾛ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ﾛ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 decision-maker of the organization

A Word from Gary

Reporting on Business Performance

102-15 Key impacts, risks, andﾛopportunities

Our Approach to Key Topics

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, and norms of behavior

Sharing Our Company Values

Purpose, Vision, and The Southwest Way, Our Promises and Values

Investor Relations

Supplier Information

Code of Ethics

102-17 Mechanisms for advice andﾛconcerns about ethics

Code of Ethics

Audit Committee Procedures for Reporting Complaints or Concerns

2020 Southwest Airlines One Report 51

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

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 for economic, environmental, and social topics

Our Approach to Governance

102-21 Consulting Stakeholders on economic, environmental, and social topics

Our Approach to Key Topics

102-22 Composition of the highest governance body and its committees

Our Approach to Governance

Investor Relations, Corporate Governance

2021 Proxy Statement, pp. 2-15

102-23 Chair of the highest governance body

2021 Proxy Statement, pp. 6 and 9

102-24 Nominating and selecting the highest governance body

Investor Relations, Corporate Governance

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

Investor Relations, Corporate Governance

2021 Proxy Statement, p. 15

102-26 Role of highest governance body in setting purpose, values, and strategy

Our Approach to Governance

Investor Relations, Corporate Governance

102-27 Collective knowledge of highest governance body

Our Approach to Governance

Investor Relations, Corporate Governance

2021 Proxy Statement, pp. 3-7

102-28 Evaluating the highest governance body's performance

Our Approach to Governance

Investor Relations, Corporate Governance

2021 Proxy Statement, pp. 8-9 and 14

102-29 Identifying and managing economic, environmental, and social impacts

Our Approach to Governance

Investor Relations, Corporate Governance

Our Approach to Key Topics

102-30 Effectiveness of risk management processes

Our Approach to Governance

Investor Relations, Corporate Governance

2021 Proxy Statement, pp. 10-12

2020 Southwest Airlines One Report 52

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Governance (continued)

102-31 Review of economic, environmental, and socialﾛtopics

Our Approach to Governance

Investor Relations, Corporate Governance

102-32 Highest governance body's role in sustainability reporting

Our Citizenship Executive Steering Group (CESG) Leadership reviews and approves our annual OneﾛReport, with our Chief Executive Officer providing final review and approval.

102-33 Communicating criticalﾛconcerns

Audit Committee Procedures for Reporting Complaints or Concerns

Code of Ethics

2021 Proxy Statement, p. 10

102-34 Nature and total number ofﾛcritical concerns

This information is confidential and is not communicated externally by the Company.

102-35 Remuneration policies 2021 Proxy Statement, pp. 18-46

102-36 Process for determining remuneration

2021 Proxy Statement, pp. 18-46

102-37 Stakeholders' involvement inﾛremuneration

2021 Proxy Statement, pp. 48-49

102-38 Annual total compensationﾛratio

2021 Proxy Statement, pp. 37-38

Stakeholder Engagement

102-40 List of Stakeholder groups Our Approach to Key Topics

102-41 Collective bargaining agreements

As of Dec. 31, 2020, approximately 83% of our Employees are covered by collective bargaining agreements.

102-42 Identifying and selecting Stakeholders

Our Approach to Key Topics

102-43 Approach to Stakeholder engagement

Our Approach to Key Topics

102-44 Key topics and concernsﾛraised

Our Approach to Key Topics

Reporting Practice

102-45 Entities included in the consolidated financial statements

Reporting on Business Performance

102-46 Defining report content andﾛtopic boundaries

Our Approach to Key Topics

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

Performance 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.

2020 Southwest Airlines One Report 53

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Reporting Practice (continued)

102-50 Reporting period Calendar year 2020, unless otherwise stated.

102-51 Date of most recentﾛreport Apr. 21, 2020

102-52 Reporting cycle Annual, calendar year 2020

102-53 Contact point for questions regarding the report

[email protected]

102-54 Claims of reporting inﾛaccordance with GRIﾛstandards

This report is self-declared to be in accordance with the Global Reporting Initiative (GRI) Coreﾛframework.

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 and its Boundary

In 2020, Southwest completed a formal key topics assessment to identify the most relevant CSR/ 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 and its components

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 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ﾎconnecting People to whatﾙs important in their lives through friendly, reliable, and low-cost air travel.

Details on Our Approach

103-3 Evaluation of the management approach

Our Approach to Governance

Investor Relations, Corporate Governance

Economic Performance

201-1 Direct economic value generated and distributed

Our Approach to Community Outreach

Deepening Our Commitment to Diversity, Equity, and Inclusion (DEI)

2020 Financial Results

Reporting on Business Performance

Ten-Year Summary

Expanding Our Network

System Map

Performance Data Table

2020 Southwest Airlines One Report 54

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Economic Performance (continued)

201-2 Financial implications and other risks and opportunities due to climate change

Southwest has voluntarily reported our greenhouse gas emissions through CDP (formerly the Carbon Disclosure Project) for the past 12ﾛyears. In our CDP response, we quantify climate change impacts, risks, and opportunities on our business and provide information on how weﾙre integrating climate change into our business strategy. You can find Southwestﾙ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.

Reporting on Business Performance

Planet Data Table

201-3 Defined benefit plan obligations and other retirement plans

Economic Performance

Reporting on Business Performance

People Data Table

201-4 Financial assistance received from Government

Economic Performance

Reporting on Business Performance

2020 Financial Results

2020 Annual Report

Indirect Economic Impacts

203-1 Infrastructure investment and services supported

Our Approach to Community Outreach

Expanding Our Network

2020 Annual Report, pp. 62-63, 79-81

203-2 Significant indirect economicﾛimpacts

Our Approach to Supply Chain

Our Approach to Community Outreach

Our Approach to Economic Impact

People Data Table

Expanding Our Network

Performance Data Table

Anti-Corruption

205-2 Communication and training about anti-corruption policies and procedures

At Southwest, we strive to maintain accountability and transparency of our business practices to reduce or eliminate corruption. We require all Employees to certify receipt and understanding of 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ﾙ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.

2020 Southwest Airlines One Report 55

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Environmental Disclosures

Management Approach

103-1 Explanation of the key topic and its Boundary

In 2020, Southwest completed a formal key topics assessment to identify the most relevant CSR/ 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 Assessment

103-2 The management approach and its components

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 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ﾎconnecting People to whatﾙs important in their lives through friendly, reliable, and low-cost air travel.

Details on Our Approach

103-3 Evaluation of the management approach

Our Approach to Governance

Investor Relations, Corporate Governance

Energy

302-1 Energy consumption within the organization

Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

302-3 Energy intensity Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

302-4 Reduction of energy consumption

Total greenhouse gas emissions from our aircraft declined in 2020 compared with 2019, primarily due toﾛ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 requirements of products andﾛservices

Although the Company's MAX aircraft remained grounded throughout 2020, the Company improved its fuel efficiency in 2020, as compared with 2019, primarily by operating fewer of its 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) GHGﾛemissions

Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

305-2 Energy indirect (Scope 2) GHG emissions

Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

305-3 Other indirect (Scope 3) GHGﾛemissions

Planet Data Table

Southwest Airlines CDP Submission

2020 Southwest Airlines One Report 56

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Emissions (continued)

305-4 GHG emissions intensity Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

Southwest Airlines CDP Submission

305-5 Reduction of GHG emissions Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

Southwest Airlines CDP Submission

305-6 Emissions of ozone-depleting substances (ODS)

One of the most important issues surrounding chemical management is the use of ozone-depleting 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 (NO X ),

sulfurﾛoxides (SO X ), and other

significant air emissions97

Planet Data Table

Effluents and Waste

306-1 Water discharge by quality and destination

Planet Data Table

306-2 Waste by type and disposalﾛmethod

Repurpose with Purpose

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 environmental laws andﾛregulations

Planet Data Table

Social Disclosures

Management Approach

103-1 Explanation of the key topic and its Boundary

In 2020, Southwest completed a formal key topics assessment to identify the most relevant CSR/ 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 Assessment

2020 Southwest Airlines One Report 57

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Management Approach (continued)

103-2 The management approach and its components

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 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ﾎconnecting People to whatﾙs important in their lives through friendly, reliable, and low-cost air travel.

Details on Our Approach

103-3 Evaluation of the management approach

Our Approach to Governance

Investor Relations, Corporate Governance

Employment

401-1 New Employee hires and Employee turnover

People Data Table

401-2 Benefits provided to Full-time Employees that are not provided to temporary or Part-time Employees

In 2020, more than 59,700 active and inactive Southwest Employees participated in at least one component of the Companyﾙs Employee benefits program. Southwest offers standard benefits to both full-time and part-time Employees. In the case of tuition reimbursement, Southwest provided 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 Regarding Operational Changes

Our Approach to Employee Experience

Employee COVID-19 Response

Occupational Health and Safety

403-1 Occupational health and safety management system

Our Approach to Occupational Health and Safety

403-2 Hazard identification, riskﾛassessment, and incidentﾛinvestigation

Our Approach to Occupational Health and Safety

Four Functions of Southwest's Safety Management System (SMS)

Employee COVID-19 Response

The Southwest Promise

403-3 Occupational health services Our Approach to Occupational Health and Safety

The Southwest Promise

403-4 Worker participation, consultation, and communication on occupational health andﾛSafety

Our Approach to Occupational Health and Safety

Employee COVID-19 Response

The Southwest Promise

2020 Southwest Airlines One Report 58

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Occupational Health and Safety (continued)

403-5 Worker training on occupational health andﾛSafety

Our Approach to Occupational Health and Safety

Employee COVID-19 Response

Training and Education

404-1 Average hours of training perﾛyear per Employee

People Data Table

404-2 Programs for upgrading Employee skills and transition assistance programs

Our Approach to Training and Development

Employee COVID-19 Response

People Data Table

Diversity and Equal Opportunity

405-1 Diversity of governance bodies and Employees

Southwest is committed to providing a stable work environment with equal opportunity for 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 which the right to freedom of association and collective bargaining may be at risk

At Southwest, we are strong supporters of protecting each individualﾙs basic human and civil rights and are guided by fundamental principles to not only comply with the law at all times, but also to avoid the appearance of impropriety in the actions of our Employees and our business partners.

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

2020 Southwest Airlines One Report 59

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

GRI Content Index

Indicator Description 2020 Response

Human Rights Assessment

412-2 Employee training on human rights policies or procedures

Southwest has a nearly 50-year history of proudly putting People first—which extends to both our 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ﾛ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ﾛ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 community engagement, impact assessments, and development programs

Our Approach to Community Outreach

Community Outreach During COVID-19

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 Safety impacts of product and service categories

Southwest strives to educate and inform Customers on a wide range of topics in the interest of their health and Safety. During the COVID-19 pandemic and as part of the Southwest Promise, 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

The Southwest Promise

2020 Southwest Airlines One Report 60

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsGRI Index

SASB Content Index

2020 Southwest Airlines One Report 61

Topic Code Metric Category Unit or Measure Reference/Response

Greenhouse

Gas Emissions

TR-AL-110a.1 Gross global Scope 1 emissions Quantitative Metric tons (t) CO 2 e Fuel Efficiency and Greenhouse Gas Emissions

Planet Data Table

TR-AL-110a.2 Discussion of long-term and short-term

strategy or plan to manage Scope 1 emissions,

emissions reduction targets, and an analysis of

performance against those targets

Discussion

and Analysis

n/a Our Approach to Environmental Stewardship

Strengthening Our Commitment to theﾛEnvironment

Fuel Efficiency and Greenhouse Gas Emissions

TR-AL-110a.3 Total fuel consumed Quantitative Megawatt-hours

(MWh)

Planet Data Table

Labor Practices TR-AL-310a.1 Percentage of active workforce covered under

collective bargaining agreements

Quantitative Percentage (%) People Data Table

TR-AL-310a.2 (1) Number of work stoppages

(2) Total days idle

Quantitative Number, Days idle 0 & 0

Competitive

Behavior

TR-AL-520a.1 Total amount of monetary losses as a result of

legal proceedings associated with

anticompetitive behavior regulations

Quantitative Reporting currency $ 0

Accident and Safety

Management

TR-AL-540a.1 Description of implementation

and outcomes of a Safety Management System

Discussion and

Analysis

n/a Our Approach to Occupational Health and Safety

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

of aviation safety regulations

Quantitative Number 1

SASB Index 2020

Sustainability Disclosure Topics and Accounting Metrics

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.

Activity Metrics

Metrics that quantify the scale of a companyﾙs business and are intended for use in conjunction with accounting metrics to normalize data and facilitate comparison

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsSASB Index

2020 Southwest Airlines One Report 62

How We Support the Global Goals The United Nations Sustainable Development Goals (SDGs) aim to address our worldﾙ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ﾛ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ﾛgoals inform our citizenship strategy and actions and help us best leverage our People and resources to tackle these challenges.

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 benekts 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 nonprokt 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ﾙs inception in 2007, we have donated more than $38.6ﾛ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 patients for medical treatment as part of MTGP.

Additionally, in response to COVID-19 we:

� Provided more than 650 complimentary lights 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ﾛ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ﾙ and their familiesﾙ physical, mental, and knancial health and well-being. Resources include:

� Designated Population Health Team Members to support workgroup-specikc 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 healthy living and promote well-being for all at all ages

Target 3.2, 3.4

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsUN SDGs

2020 Southwest Airlines One Report 63

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 prokciency. 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, mentoring, etc. The needs of learners are changing and will likely be a blended experience with technology and in-person. In response toﾛthe COVID-19 pandemic, SWA U became a completely virtual learning platform. Our Teams continue to evaluate our training approach 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-of Travel Award program, providing the opportunity for Latino students to pursue higherﾛeducation pathways, while remaining connected to their families

� Continued our Destination 225n program to support future careers inﾛaviation

� Partnered with hundreds of organizations across the country focused on leadership, education, and entrepreneurship including, but notﾛlimited to, Hispanic Heritage Foundation, National Urban League, 100 Black Men, National Association of Women Business Owners, andﾛ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ﾛaviation industry, giving Southwest Pilots opportunities to mentor and educate students in and around the kfth-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ﾛand goals

Support inclusive and equitable quality education and promote lifelong learning opportunities for all

Target 4.1, 4.4, 4.7

Southwestﾙs inclusive Culture recognizes, respects, and values the diferences of all Employeesﾎincluding women. We also provide paidﾛparental leave to new Moms and Dads, and allow them lexibility to use this benekt in a way that works best for theirﾛ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 Tragcking awareness curriculum to educate and empower all Employees on the issue of Human Tragcking, raise awareness for potential signs of tragcking, and inform them about how to take action. We also partnered with several nonprokt organizations in the kght against Human Tragcking by:

� Supporting prevention, rescue, and restoration initiatives to address the systemic issues impacting this epidemic

� Supporting the National Tragcking Hotline104 through our partnership with Polaris105 and providing complimentary travel to transport victims to safety

� Investing in local Human Tragcking organizations using a geo-targeted approach to provide support in cities where tragcking isﾛmostﾛprevalent

Southwest has long been committed to diversity, equity, and inclusion (DEI), having been founded and guided across kve decades by TheﾛGolden Rule to "Treat others as you would like to be treated." We continue to look for opportunities to better relect in our organization the diverse demographics of the communities we serve. We engage in our diverse communities in a way that makes a diference over the long term, including strategic diference-makers like education, scholarship, and workforce development. Weﾛalsoﾛutilize our supply chain practices and spending to make a strategic diference in our diverse communities over the longﾛterm.

Achieve gender equality and empower all women and girls

Target 5.1, 5.2

As of Dec. 31, 2020, we provided direct employment to more than 56,000 Employees106 and procured goods and services from nearly 4,000ﾛsources throughout our footprint. In 2020, more than 1.2ﾛmillion hours were invested in Employee training and development. Withﾛa strong presence in several leisure and business markets throughout North America, we believe our core business activities stimulate indirect economic growth wherever weﾛoperate.

In 2020, more than 31,700 Southwest Employees and Contractors completed human rights training courses, totaling more than 61,000ﾛtraining hours. Furthermore, 10,000ﾛEmployees learned how to identify Human Tragcking 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 Tragcking survivors through our partnership withﾛRethreaded.107

Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all

Target 8.2, 8.4, 8.7

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsUN SDGs

2020 Southwest Airlines One Report 64

We seek to combat climate change by continually increasing our energy egciency. We have voluntarily tracked and reported our greenhouse gas (GHG) emissions since 2009, and we have exceeded Airlines for Americaﾙs (A4A) fuel egciency improvement target of an annual average fuel egciency improvement of 1.5% from 2009 (on an ASM110 per gallon basis).

We work toward our GHG emissions targets by modernizing our leet, electrifying our ground support vehicles, and knding other innovative ways to increase egciency.

Our Environmental commitment includes:

� Focusing on a goal of carbon neutrality for our Scope 1 and 2 emissions by 2050. To accomplish this, weﾙre looking to incorporate more sustainable aviation fuel partners and introduce carbon ofsetting into our operation

� Partnering with diferent organizations including Red Rock Biofuels and The U.S. Department of Energyﾙ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 egcient aircraft

� Expanding our Boeing order book through 2031, including 100 additional Boeing MAX 7 aircraft, which are expected to replace less fuel-egcient Boeing 737-700 aircraft111

� Continuing the ongoing work of our Repurpose with Purpose program, which diverts materials and items intended for landklls while generating social and economic opportunities for communities

� Continuing our work with a variety of organizations, nonprokts, and government entities, including Airlines for America (A4A), whose work complements our eforts to improve our environmental commitment

Take urgent action to combat climate change and its impacts

Southwest has a long history of giving back in the communities where we live and work. Historically, we have provided assistance in theﾛwake of natural disasters like loods 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ﾛbusiness posed by COVID-19, Southwest provided more than $3 million in support to help those afected by the pandemic.

During 2020, we actively prepared for unexpected disasters or events to restore and rebuild strong communities by:

� Supporting our key disaster partners through our annual giving program to support preparedness and response during times of crisis orﾛdisaster

� Engaging our Customers in a giving campaign to support American Red Cross, Team Rubicon, and Feeding America and their eforts at theﾛ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ﾛSouthwest system to support COVID-19 reliefﾛeforts

� Contributing $1 million in honor of Southwestﾙs longstanding LUV Classic event to support childrenﾙs charities focused on COVID-19 support programs and services

� Donating two charter lights to transport 330 volunteer krekghters from across the state of Texas to assist on the frontlines of the Californiaﾛwildkres

Make cities and human settlements inclusive, safe, resilient, andﾛsustainable

Target 11.1, 11.3, 11.5

Target 13.3

In 2020, Southwest made several adjustments and improvements intended to help us advance our eforts to kght 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,ﾛweﾛleveraged longstanding relationships with partner organizations who will help us listen, learn, and actﾎso that we can support the diverse communities we serve.109

We continue our support of nonprokt and advocacy organizations that empower and promote inclusion for all, ensuring equalﾛopportunity.

� Partners include: National LGBT Chamber of Commerce (NGLCC), Texas Womenﾙ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 eforts, with a portion of the donation designated to local chapters across the country to support leadershipﾛprograms

Reduce inequality within and among countries

Target 10.2, 10.4

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGsUN SDGs

2020 Southwest Airlines One Report 65

Company's dependence on Boeing with respect to the Company's fleet order book and delivery schedule; (v) the Companyﾙs dependence on other third parties forﾛproducts and services, in particular with respect to global distributions systems and related alliances and capabilities, and the impact on the Companyﾙs operations and results of operations of any third party delays or non-performance; (vi) the Companyﾙs ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vii) the impact of labor matters on the Companyﾙs result of operations, business decisions, plans, and strategies; 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ﾛCompany's Annual Report on Form 10-K forﾛthe fiscal year ended Dec. 31, 2020.

2) See Endnote 1.

3) Corporate Governance Guidelines

4) Second amended and Restated Bylaws

5) See Endnote 1.

6) See Endnote 1.

7) Emissions from refrigerant losses are not included in our emissions inventory due to their de minimis impact on our overall emissions. Reference: Assurance Statement for 2020 Greenhouse Gas Inventory.

8) See Endnote 1.

9) Select Disaster Response Team Members began meeting and planning in January of 2020. The Disaster Response Pandemic Plan was activated in March of 2020.

10) See Endnote 1.

11) See Endnote 1.

12) See Endnote 1.

13) See Endnote 1.

14) Measuring 0.3 micrometers or greater inﾛdiameter passing through the filter.

15) https://community.southwest.com/t5/Blog/ Building-Resilience-and-Advancing-Black- Communities/ba-p/108216

16) Active, full-time equivalent Employees as of Dec. 31 for specific calendar year. Included 10,421 Employees participating in the Extended Emergency Time Off program as ofﾛDec. 31, 2020.

17) See Endnote 16.

18) Based on Employees' voluntary self-disclosure. 2020 is our first year reporting Employees by ethnicity and race.

19) Flight includes Cabin Service Support, Inflight, and Flight Operations. Ground, Customer, and Fleet Services includes Provisioning, Customer Services, Ground Operations, and Network Operations Center.

20) Includes Southwestﾙs contributions to Employee health and welfare plans, workersﾙ compensation insurance, and employer payroll taxes. 2020 includes a one-time accrual for Employees participating in voluntary separation programs.

21) U.S. Department of Transportation. (2021, February) Air Travel Consumer Report (ATCR). AﾛProduct of the Office of Aviation Enforcement and Proceedings, Aviation Consumer Protection Division. Washington, D.C. The Department of Transportation (DOT) ranks all U.S. carriers based on the lowest ratio of complaints per 100,000 passengers enplaned, as published in the DOT Air Travel Consumer Report (ATCR). Southwest earned the best Customer Satisfaction ranking among U.S. Marketing Carriers with the lowest ratio of complaints to the DOT per 100,000 enplaned passengers for 2020. A Marketing Carrier is an airline that advertises under a common brand name, sells reservations, manages frequent flyer programs, and is ultimately responsible for the airlineﾙs consumer policies. Operating Carriers only handle the flight operations, passenger check-in/boarding, and baggage handling for the respective Marketing Carriers they serve—Operating Carriers are not responsible for DOT complaints related to policies, procedures, and advertising associated with the Marketing Carrierﾙs brand.

22) Independent Sector (2020, July). Independent Sector Releases New Value of Volunteer Time of $27.20 Per Hour. https://independentsector. org/value-of-volunteer-time-2020/

23) The Department of Transportation (DOT) ranks all U.S. carriers based on the lowest ratio of complaints per 100,000 passengers enplaned, as published in the DOT Air Travel Consumer Report (ATCR). Southwest earned the best Customer Satisfaction ranking among U.S. Marketing Carriers with the lowest ratio of complaints to the DOT per 100,000 enplaned passengers for 2020. A Marketing Carrier is an airline that advertises under a common brand name, sells reservations, manages frequent flyer programs, and is ultimately responsible for the airlineﾙs consumer policies. Operating Carriers only handle the flight operations, passenger check-in/boarding, and baggage handling for the respective Marketing Carriers they serve—Operating Carriers are not responsible for DOT complaints related to policies, procedures, and advertising associated with the Marketing Carrierﾙs brand.

1) The 2020 Southwest Airlines One Report 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ﾙs environmental sustainability beliefs, plans, and expectations; (ii) the Companyﾙs plans, goals, objectives, and initiatives related to diversity, equity, and inclusion; (iii) the Companyﾙs plans and expectations with respect to Employee training, development, benefits (including post-retirement benefits), pay, and staffing (including with respect to avoiding furloughs or pay cuts); (iv) the Companyﾙs Vision; (v) the Companyﾙs network plans, expectations, and opportunities, including factors and assumptions underlying the Companyﾙs plans and expectations; (vi) the Companyﾙs initiatives and related goals with respect to global distribution system access and related alliances and capabilities; (vii) the Companyﾙs financial position, outlook, plans, strategies, goals, targets, and projected results of operations; (viii) the Companyﾙs fleet plans and expectations; and (ix) the Companyﾙs initiatives and expectations with respect to fuel efficiency and emissions. These 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 extent of the COVID-19 pandemic, including the duration, spread, severity, and any recurrence of the COVID-19 pandemic, including through any new variant strains of the underlying virus; the effectiveness and availability of vaccines; the duration and scope of related government orders and restrictions; the duration and scope of the Companyﾙs actions to address Customer and Employee health concerns; the extent of the impact of the COVID-19 pandemic on overall demand for air travel and the Companyﾙs related business plans and decisions; and any negative impact of the COVID-19 pandemic on the Companyﾙs access to capital; (ii) the impact of fears or actual outbreaks of other diseases, economic conditions, fuel prices, extreme or severe weather and natural disasters, fears of terrorism or war, actions of competitors, consumer perception, 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; (iii) the impact of governmental actions and governmental regulations on the Companyﾙs plans, strategies, and operations; (iv) the

Endnotes For the 2020 One Report, APA guidance for endnote placement and construction was used to provide supplemental information.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGs

2020 Southwest Airlines One Report 66

24) See Endnote 1.

25) The Department of Transportation (DOT) ranks all U.S. carriers based on the lowest ratio of complaints per 100,000 passengers enplaned, as published in the DOT Air Travel Consumer Report (ATCR). Southwest earned the best Customer Satisfaction ranking among U.S. Marketing Carriers with the lowest ratio of complaints to the DOT per 100,000ﾛenplaned passengers for January and February 2020. A Marketing Carrier is an airline that advertises under a common brand name, sells reservations, manages frequent flyer programs, and is ultimately responsible for the airlineﾙs consumer policies. Operating Carriers only handle the flight operations, passenger check-in/boarding, and baggage handling for the respective Marketing Carriers they serve— Operating Carriers are not responsible for DOT complaints related to policies, procedures, and advertising associated with the Marketing Carrierﾙs brand.

26) An available seat mile (ASM) is one seat (emptyﾛor full) flown one mile. Also referred to as “capacity,” which is a measure of the space available to carry Passengers in a given period.

27) See Endnote 1.

28) See Endnote 1.

29) The Company's Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). These GAAP financial statements may include (i) unrealized noncash adjustments and reclassifications, which can be significant, as a result of accounting requirements and elections made under accounting pronouncements relating to derivative instruments and hedging and (ii) other charges and benefits the Company believes are unusual and/or infrequent in nature and thus may make comparisons to itsﾛprior or future performance difficult.

As a result, the Company also provides financial information in this report that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company provides supplemental non-GAAP financial information (also referred to as "excluding special items"), including results that it refers to as "economic," which the Company's management utilizes to evaluate its ongoing financial performance, and the Company believes provides additional insight to investors as supplemental information to its GAAP results. The non-GAAP measures provided that relate to the Companyﾙs performance on an economic fuel cost basis include net income (loss), non-GAAP; net income (loss) per share, diluted, non-GAAP; and operating expenses per ASM, non-GAAP, excluding fuel and oilﾛexpense and ProfitSharing (cents).

TheﾛCompany's economic fuel and oil expense results differ from GAAP results in that they only include the actual cash settlements from fuel hedge contracts—all reflected within fuel and oil expense in the period of settlement. Thus, fuel and oil expense on an economic basis has historically been utilized by the Company, as well as some of the other airlines that utilize fuel hedging, as it reflects the Companyﾙs actual net cash outlays for fuel during the applicable period, inclusive of settled fuel derivative contracts. Any net premium costs paid related to option contracts that are designated as hedges are reflected as a component of fuel and oil expense, for both GAAP and non-GAAP (including economic) purposes in the period of contract settlement. The Company believes these economic results provide further insight into the impact of the Company's fuel hedges on its operating performance and liquidity since they exclude the unrealized, noncash adjustments and reclassifications that are recorded in GAAP results in accordance with accounting guidance relating to derivative instruments, and they reflect all cash settlements related to fuel derivative contracts within fuel and oil expense. This enables the Company's management, as well as investors and analysts, to consistently assess the Company's operating performance on a year-over-year or quarter-over-quarter basis after considering allﾛefforts in place to manage fuel expense. However, because these measures are not determined in accordance with GAAP, such measures are susceptible to varying calculations, and not all companies calculate the measures in the same manner. As a result, the aforementioned measures, as presented, may not be directly comparable to similarly titled measures presented by other companies.

Further information on (i) the Company's fuel hedging program, (ii) the requirements of accounting for derivative instruments, and (iii) the causes of hedge ineffectiveness and/or mark-to-market gains or losses from derivative instruments is included in Note 11 to the Consolidated Financial Statements on Form 10-K for the fiscal year ended Dec. 31, 2020.

The Companyﾙs GAAP results in the applicable periods may include other charges or benefits that are also deemed "special items," that the Company believes make its results difficult to compare to prior periods, anticipated future periods, or industry trends. Financial measures identified as non-GAAP (or as excluding special items) have been adjusted to exclude special items. For the periods presented, in addition to the items discussed above, special items include:

� Proceeds related to the Payroll Support Program under the CARES Act, which were used to pay Employee salaries, wages, andﾛbenefits;

� Accrued charges related to the special termination benefits upon Employees accepting Voluntary Separation Program 2020ﾛor Extended ETO as of Dec. 31, 2020;

� Gains associated with the sale-leaseback of 10 Boeing 737-800 aircraft and 10 Boeing 737 MAX 8 aircraft to third parties;

� A noncash impairment charge related to 20ﾛBoeing 737-700 aircraft that were retired during 2020;

� Unrealized losses related to 12 forward- starting interest rate swap agreements. During 2020, the interest rate swap agreements, which were related to 12 737 MAX 8 aircraft leases (withﾛdeliveries originally scheduled between June 2020 and September 2020), were de-designated as hedges due to the scheduled delivery range no longer being probable, resulting in the mark-to-market changes being recorded to earnings; and

� A post-retirement curtailment charge related to Employees who accepted Voluntary Separation Program 2020 and elected to participate in the Company's Retiree medical benefits plan.

Because management believes special items can distort the trends associated with the Companyﾙs ongoing performance as an airline, the Company believes that evaluation of its financial performance can be enhanced by a supplemental presentation of results that exclude the impact of special items, in order to enhance consistency and comparativeness with results in prior periods that do not include such items and as a basis for evaluating operating results in future periods. The following measure is often provided, excluding special items, and utilized by the Companyﾙs management, analysts, and investors to enhance comparability of year- over-year results, as well as to industry trends: netﾛincome (loss), non-GAAP.

Information regarding special items and reconciliation of reported amounts to amounts excluding special items are included in the accompanying reconciliation table in the Performance section.

30) See Endnote 16.

31) Includes 32 Boeing MAX 737 aircraft in long-term storage as of Dec. 31, 2020. Includes 60 Boeing 737 Next Generation aircraft removed from active fleet and remaining in long-term storage as of Dec. 31, 2020.

32) Includes seasonal destinations, as well as seven international stations that still had suspended service as of Dec. 31, 2020, due to the COVID-19 pandemic (BZE, GCM, LIR, NAS, PLS, SJO, and CZM). Service to CZM resumed on March 11, 2021.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGs

2020 Southwest Airlines One Report 67

33) See Endnote 1.

34) A revenue passenger mile (RPM) is one paying Passenger flown one mile. Also referred to as “traffic,” which is a measure of demand for a givenﾛperiod.

35) See Endnote 26.

36) Passenger load factor is RPMs34 divided byﾛASMs26.

37) The average distance in miles the aircraft isﾛflown per trip.

38) The average amount of Passenger revenue per revenue Passenger carried.

39) Calculated as Passenger revenue divided by RPMs34. Also referred to as “yield,” this is the average cost paid by a paying Passenger to fly one mile, which is a measure of revenue production and fares.

40) Calculated as operating revenues divided by ASMs26. Also referred to as “operating unit revenues” or “RASM,” this is a measure of operating revenue production based on the total available seat miles flown during a particular period.

41) Calculated as operating expenses divided by ASMs26. Also referred to as “unit costs” or “costs per available seat mile,” this is the average cost to fly an aircraft seat (empty or full) one mile, which is a measure of costﾛefficiencies.

42) See Endnote 16.

43) See Endnote 31.

44) Based on data from the Department of Transportationﾙs (DOT) O&D (Origin and Destination) Survey for the 12 months ending Sept. 30, 2020, based on domestic originating passengers. This data can be accessed via Diio Mi at mi.diio.net.

45) Metro areas are areas around cities that may include multiple airports. In some cases, the airports within a metro area may serve separate competitive markets.

46) See Endnote 44.

47) Co-terminal: Airports that share a common city or region; for example, Newark, LaGuardia, and JFK are considered co-terminals to one another serving the New York City area.

48) See Endnote 44.

49) See Endnote 1.

50) See Endnote 31.

51) See Endnote 31.

52) The 737 MAX 8 is approximately 14 percent more fuel-efficient than the 737-800. The MAX 7 is expected to produce comparable fuel efficiency improvement compared with the 737-700.

53) See Endnote 34.

54) See Endnote 26.

55) See Endnote 36.

56) See Endnote 39.

57) See Endnote 40.

58) See Endnote 41.

59) See Endnote 31.

60) See Endnote 16.

61) See Endnote 29.

62) Tax amounts for each individual special item are calculated at the Company's effective rate for the applicable period and totaled in this line item. The Non-GAAP tax rate considers the appropriate tax treatment for special items and also reflects the anticipated benefit of carrying back full-year 2020 net losses to claim tax refunds against previous cash taxes paid relating to tax years 2015 through 2019, some of which were at higher rates than the current year. The impact to Net loss may not be equivalent to the special item multiplied by the effective tax rate, in all cases.

63) Adjustment related to GAAP and Non-GAAP tax rate differences, primarily due to the PayrollﾛSupport Program proceeds being excluded as a special item.

64) See Endnote 1.

65) See Endnote 1.

66) See Endnote 1.

67) See Endnote 1.

68) See Endnote 26.

69) A revenue ton mile (RTM) is one ton of revenue traffic (Passenger and cargo) transported one mile. RTM calculation methodology has been updated to align with the methodology suggested by the International Civil Aviation Organization (ICAO). RTMs for 2016 through 2019 have been restated to reflect the updated methodology.

70) See Endnote 36.

71) See Endnote 1.

72) See Endnote 26.

73) See Endnote 36.

74) See Endnote 34.

75) See Endnote 69.

76) See Endnote 1.

77) Scope 2 emissions are reported as location- based emissions per GHG Protocol CorporateﾛStandard.

78) See Endnote 34.

79) See Endnote 69.

80) See Endnote 26.

81) See Endnote 69.

82) See Endnote 69.

83) Water consumption is primarily for domestic use at our facilities.

84) See Endnote 16.

85) See Endnote 7.

86) See Endnote 77.

87) See Endnote 34.

88) See Endnote 26.

89) See Endnote 69.

90) In prior years, we have disclosed Scope 3 emissions related to Capital Goods—Aircraft Production but have chosen to remove the disclosure, as we have determined that our calculation does not capture emissions for the full value chain of the aircraft production thus understating the metric. We do not currently have access to the remaining value chain components to accurately state the metric.

91) NO X and SO

X emissions are reported in our

annual emissions inventories for our DAL and PHX facilities. Data is from prior year due to air emissions reporting cycle.

92) See Endnote 26.

93) See Endnote 34.

94) See Endnote 69.

95) Waste and material recycled from aircraft and select facilities as part of Southwestﾙs waste management and co-mingled recycling programs. Data is not available for all locations where Southwest operates. Does not include international flights due to regulations that require waste from international flights to beﾛsterilized.

96) See Endnote 36.

97) See Endnote 91.

98) See Endnote 26.

99) See Endnote 36.

100) See Endnote 34.

101) See Endnote 69.

102) See Endnote 1.

103) See Endnote 1.

104) National Trafficking Hotline. https://humantraffickinghotline.org/

105) https://polarisproject.org

106) See Endnote 16.

107) Rethreaded is a registered 501(c)3 non-profit organization. Donations are tax-deductible to the extent allowed by law. https://www.rethreaded.com/

108) See Endnote 1.

109) https://community.southwest.com/t5/Blog/ Building-Resilience-and-Advancing-Black- Communities/ba-p/108216

110) See Endnote 26.

111) See Endnote 1.

PerformancePeople Planet GRI IndexAbout the One Report SASB Index UN SDGs

2020 One Report

SouthwestOneReport.com

2702 Love Field Dr, Dallas, TX 75235