oing the Right Thing. It’s not just a slogan at Southwest Airlines; it is our way of life. We practice this concept in a million different ways, every day. Southwest is privileged to serve millions of Customers annually who have chosen to patronize us with their hard-earned money. Southwest honors our Customers’ patronage by doing the right thing for them—providing Safe, comfortable, and reliable air transportation. Our Mission Statement puts it this way: “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”

The 35,000+ Employees of Southwest Airlines are the heart and soul of our Company. Doing the right thing for these Employees includes providing them with a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

Our planet sustains us, and, if treated right, it will provide us with stability. To recognize the importance of our home, one only needs to look at the exhilarating photo of Earth that was photographed by the Astronauts of Apollo 8. In this one picture, it is possible to contrast the lushness of our planet with the stark bareness of the moon. Earth appears as a welcoming lifeboat in the void of space. Doing the right thing for our planet is not just “good business,” it is necessary for our survival.

It takes a lot of dedication, perseverance, and hard work to do the right thing for our Customers, Employees, and Planet, and this report outlines our environmental efforts and our goals. We began operations in 1971 with a revolutionary idea that everyone should be able to afford to fly instead of drive and to enjoy the Safety, comfort, and convenience of air travel. For the past 38 years, we have devoted ourselves to meeting that goal. Not only do we work hard with what we call a Warrior Spirit, we work smart. That means being as productive as possible without wasting either efforts or materials. Our Customers have responded. In the ensuing 38 years, we have grown to serve 64 (68 with the announced additions of Minneapolis, New York LaGuardia, Boston Logan, and Milwaukee in 2009) cities that we also consider to be our hometown communities. Being careful stewards of the environment has allowed us to keep our costs down and our fares low, and 2008 marked our 36th consecutive year of profitability. Southwest Airlines’ total operating revenue was approximately $11 billion, and total operating income was $449 million, following Generally Accepted Accounting Principles (GAAP).

Obviously, the fewer materials we consume, the fewer natural resources are depleted. This report outlines our recycling efforts, which have diverted more than 450 metric tons of materials from America’s landfills in 2008. Reducing our fuel consumption reduces U.S. dependency on foreign oil and it also reduces greenhouse gas (GHG) emissions. Our efforts to reduce GHG emissions in 2008 eliminated more than 319,000 metric tons of carbon dioxide equivalent. You will learn details of those efforts, including blended winglets, Gate Services for onboard power and air for the aircraft at the gate, engine washing, and electric ground service vehicles, just to name a few. As you read about these efforts, keep in mind that the airline industry, which carries millions of people every year, has improved its fuel efficiency by 110 percent since 1978. This resulted in a reduction of 2.5 billion metric tons of GHG emissions.¹

Looking forward, we support several programs to further reduce GHG emissions, including a complete overhaul and modernization of the outdated Air Traffic Control System (ATC) – we support the Next Generation Air Traffic Control system (NextGen), which includes a state-of-the-art satellite-based navigation system. Southwest is the first airline to commit to spending millions of dollars to retrofit our entire fleet with Required Navigation Performance (RNP) technology, which is a cornerstone of NextGen. We support adopting the entirety of NextGen as soon as possible. Once NextGen is in place throughout the industry, it is projected that fuel and GHG emissions reductions will range from six to 15 percent.

Southwest, in cooperation with other air carriers, supports a balanced and comprehensive national energy policy that increases the country’s energy independence. This includes the development of alternative fuels, increasing domestic oil and gas supplies in an environmentally sensitive manner, and additional energy conservation measures.

Southwest also supports advances in airframe and jet engine design. While aircraft manufacturers have made today’s aircraft quieter and cleaner than any before, advanced wing systems and surfaces that reduce drag will further reduce our fuel needs and GHG emissions.

You will also read about how our Employees strive to be good neighbors in the communities we serve through involvement in all aspects of the community. For those of us at Southwest, Doing the Right Thing comes naturally. It is an extension of our Culture, and it really is part of our corporate DNA.