Our Performance in 2010 marked our 38th consecutive year of profitability—a feat unmatched in U.S. aviation history. We experienced industry-leading revenue growth, record load factors, and market share gains—all without nickel-and-diming our Customers.
Our strong results in 2010 are a notable demonstration of our Employees’ Warrior Spirits in the face of a recovering economic environment and volatile fuel prices. Thanks to their relentless hard work, we were prepared. Our network optimization; enhancements to our revenue management; and an overall rebound in Customer demand, particularly business Passengers, significantly boosted our revenues. We remained true to our low-fare brand, refusing to follow the industry’s efforts to pile on additional fees and surcharges. Instead, we offered Customers a choice in paying more for optional services. As we continued our focus on superior Customer Service, we experienced record load factors in all but one month of the year and grew our market share. We held on to the distinct designation as the largest domestic airline.1 Our cost containment efforts continued to help mitigate operating cost pressures, largely due to volatile fuel costs. Although we had virtually no seat mile growth in 2010, we continued to strengthen our network through optimization, which allowed us to introduce Southwest’s legendary low-fare service to Panama City Beach, Fla., and grow key markets like Denver, Boston, and St. Louis. We preserved our balance sheet strength and financial health, supporting our confidence to chart our exciting course for the next five years and beyond—a course that we believe will allow us to profitably grow Southwest Airlines and achieve our 15 percent pretax return on invested capital financial target.
We achieved another year of profitability by staying true to the core principles on which we were founded—low fares, low costs, and dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company SPIRIT. This passion is what propels us forward to continually improve for our Shareholders, our Customers, our communities, our Planet, and ourselves.
dollars in millions, except per share amounts
|Net income per share, basic||$||0.13||$||0.62||376.9||%|
|Net income per share, diluted||$||0.13||$||0.61||369.2||%|
|Return on average stockholders’ equity||1.9||%||7.9||%||6.0||pts.|
|Stockholders’ equity per common share outstanding||$||7.34||$||8.35||13.8||%|
|Revenue passengers carried||86,310,229||88,191,322||2.2||%|
|Revenue passenger miles (RPMs) (000s)||74,456,710||78,046,967||4.8||%|
|Available seat miles (ASMs) (000s)||98,001,550||98,437,092||0.4||%|
|Passenger load factor||76.0||%||79.3||%||3.3||pts.|
|Passenger revenue yield per RPM||13.29||¢||14.72||¢||10.8||%|
|Operating revenue yield per ASM||10.56||¢||12.30||¢||16.5||%|
|Operating expenses per ASM||10.29||¢||11.29||¢||9.7||%|
|Aircraft in service at yearend||537||548||2.0||%|
|Full-time equivalent Employees at yearend||34,726||34,901||0.5||%|
1 As measured by the number of originating passengers boarded and based on data available from the U.S. Department of Transportation as of Sept. 30, 2010.