2020 One Report One Team. All Heart.
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2020 One Report One Team. All Heart.
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
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
2020 One Report Our Triple Bottom Line
To illustrate our steadfast focus on a triple bottom line—our
The importance of our citizenship commitment was underscored
People, Performance, and Planet—we highlight our citizenship
by the events of an incredibly challenging year. In 2020, we
e orts each year in the Southwest One Report, an interactive
doubled down on commitments to our Employees, Customers,
electronic publication. The integrated One Report combines
Shareholders, suppliers, and communities. Our citizenship e orts
nancial, corporate responsibility, and environmental reporting
give us an opportunity to invest in the People and places our
into a single comprehensive report.1
future depends on.
2020 Southwest Airlines One Report 2
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
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 O cer
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 a ected the lives of many, and we sought to do right by our Employees,
Customers, and communities in the face of these di cult circumstances. On the following
pages, you can read more about our citizenship activities during 2020, and see how we
sought to align our e orts with our Heart for People. Welcome to this year s One Report.
2020 Southwest Airlines One Report 3
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Won Four
Ranked 11th Best Airline North America Received a
(in 2020)
FORTUNE World’s Most
Best Airline United States
100
Best Economy North America on the Corporate
Admired Companies®
Best Low Cost Airline Equality Index
North America in 2020
FORTUNE magazine
2020 Tripadvisor Travelers' Human Rights
Choice™ Awards for Airlines Campaign Foundation
Won
Recognized as a
Best Customer Service
Top 50 Program of the Year
Named a
Employer (Rapid Rewards® Program)
Best Loyalty Credit Card
Top 100
Equal Opportunity
Magazine Best Airline Redemption Ability Company
Freddie Awards BetterInvesting Magazine
Named Named the
Best Domestic #1
Designated a
Airline U.S. Airline
Best for Vets:
(in 2020)
Employer Airforwarders Association
Military Times Wall Street Journal
2020 Southwest Airlines One Report 4
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
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 di erence 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 connecting People to what s
important in their lives through friendly, reliable, and low-cost
air travel.
Reporting Scope
The 2020 Southwest One Report is CSR/ESG topics according to our Stakeholders We engaged both internal and external
a snapshot of our corporate social [Communities, Customers, Employees, Stakeholders to determine which ESG topics
Governments and Non-governmental they perceive are most important to our
responsibility (CSR) e orts that fall Organizations (NGOs), Investors, and Suppliers]. business. We then consolidated topics raised
under our People, Performance, and The 2020 assessment examined 28 topics and through Stakeholder engagement inputs,
Planet initiatives. The One Report also helped guide the creation of the One Report. assigned rankings, appraised signi cance of
Topics were grouped into ve categories: business impact for each topic, prioritized
covers our environmental, social, and
Economic, Employees, Environment, topics, evaluated the risk, and developed our
governance (ESG) e orts, and re ects Governance, and Social. key topics matrix (next page).
the period of Jan. 1 to Dec. 31, 2020
Based on Global Reporting Initiative (GRI)
(unless otherwise noted). People, Performance,
guidelines, Southwest identi ed priority topics
using a systematic process for Stakeholder and Planet
The One Report covers only those engagement and feedback prioritization that
consisted of: Our 2020 key topics assessment illuminated
business activities for which Southwest areas for potential opportunities to enhance
generally has complete control or • Evaluating relevant CSR/ESG topics our CSR/ESG reporting approach, and helped
ownership. This report does not include • Identifying internal and external Stakeholders us align our CSR/ESG activities with the
United Nations Sustainable Development
facilities primarily controlled by others, • Assessing the organization s impacts Goals (SDGs), Global Reporting Initiative (GRI),
such as airport terminal space, or • Evaluating the in uence on the and Sustainability Accounting Standards Board
outsourced or subcontracted facilities. Stakeholder groups (SASB) reporting frameworks.
• Prioritizing topics
Key Topics
Southwest recognizes the importance of key
topics in its CSR and ESG e orts, as it helps us
strategically address ESG issues that matter most
to our business and our Stakeholders. Key topics help us strategically address
In 2020, Southwest completed a formal key
ESG issues that matter most to our
topics assessment, conducted by an independent
third party, to identify the most relevant
business and our Stakeholders.
2020 Southwest Airlines One Report 5
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
5.0
Employees Economic Social
Importance to external stakeholders
Anti-Competitive Customer Health
ESG Key Topics
CB Collective Bargaining AB Behavior CH & Safety
4.5 CH
FE
GE DE
Diversity Equity,
& Inclusion AC Anti-Corruption DP Data Privacy
CR Et
Matrix 4.0 EP
EH
DE CM
EB Employee Benefits
Employee Health
CM Crisis Management HT Human Trafficking
EH & Safety EP Economic Performance Ph Philanthropy
TE FM
WM HT EO
Engagement with 3.5 SP SD
EC ET Employee Turnover FM Fleet Management SD Supplier Diversity
AB BO Indirect Economic
Ph TE Training & Education IE
Stakeholders resulted in EB
CB Impact
DP Re Recruitment SP Sustainable Procurement
the prioritization of topics. 3.0 AC
BD
Environment Governance
CR Climate Risk BD Board Diversity
2.5
Environmental
EC Compliance
BO Board Oversight
ET
FE Fuel & Energy Et Ethics
2.0
IE Greenhouse
Re GE Gas Emissions
EO Executive Ownership
1.5
WM Waste Management
1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Signific f t to the business
Employees Economic Social Environment Governance
Stakeholder How We Engage
To better understand the e ects of our
citizenship initiatives upon our business,
Employees • Employee surveys • Companywide Culture Committee
we also conducted interviews with:
• Company intranet SWALife • Culture & Engagement Department
• Other internal communication channels • Diversity, Equity, & Inclusion • Southwest Executive Leadership
• Weekly podcasts from our Chairman Department
• Southwest Citizenship Executive
and CEO
Steering Group
Customers • Customer surveys • Customer call centers • Southwest Cross-Functional
• Social media listening • Customer emails
Working Groups
Suppliers • Supplier Diversity Commitment • Engagement with internal participants
• Online supplier portal in the procurement process
• ESG-focused questions in supplier RFPs • Engagement with external participants
in the procurement process (suppliers)
Governance2
Non-Governmental Research and publications from the following NGOs help inform our citizenship approach:
Organizations (NGOs) • Commercial Aviation Alternative Fuels • Sierra Club The business and a airs of Southwest Airlines Co.
Initiative (CAAFI) • Airport Cooperative Research Program (Southwest or the Company) are managed under
• World Economic Forum's Clean Skies for (ACRP) the direction of the Company s Board of Directors
Tomorrow Coalition (Board of Directors). The fundamental responsibility
of the Board of Directors is to promote the best
interests of the Company and its Shareholders
Airports/Government • Engagement with internal participants • Developing public policy positions
from Governmental A airs Department intended to bene t our Employees, by overseeing the management of the
Customers, and communities Company s business. Among other duties
and responsibilities, the Board of Directors is
responsible for (i) overseeing the selection,
Investors • Engagement with internal participants in • Investor-focused standards such as
Investor Relations Department Sustainability Accounting Standards evaluation, development, and compensation of
• Informal investor interviews Board senior management; (ii) assessing major risks
facing the Company and reviewing options to
mitigate such risks; (iii) reviewing, approving,
Regulators We take regulatory compliance seriously, including with respect to standards and
and monitoring signi cant nancial and business
requirements established by:
strategies and major corporate actions; and
• Department of Transportation (DOT) • Federal Aviation Administration (FAA)
(iv) overseeing the processes to maintain the
• Environmental Protection Agency (EPA) • Securities and Exchange Commission
utmost integrity and proper management of
(SEC)
the Company.3
Communities • Employee volunteerism • Community Relations Team Pursuant to Texas law, the Board of Directors
• Charitable contributions and donations • Medical Transportation Grant Program is required to elect a President and a Secretary
• Nonpro t partnerships (MTGP) and may elect such other o cers as the Board
of Directors deems appropriate, which currently
ESG Raters Additionally, we reviewed multiple sustainability reporting standards, and frameworks, and include, among others, the Company's Chief
results from independent ESG research rms to inform our reporting e orts, including: Executive O cer (CEO). The Company's CEO has
• CDP (formerly Carbon Disclosure • Institutional Shareholder Services (ISS) responsibility for the general management and
Project) • Sustainalytics
direction of the Company s business. The duties
• S&P Global Corporate Sustainability and powers of the Company s CEO and other
• EcoVadis
Assessment o cers are set forth in the Company s bylaws.4
2020 Southwest Airlines One Report 6
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
The Company s bylaws and other information
about the Company s governance practices,
Board of Directors, and o cers are available on
southwest.com in the Investor Relations section. The Southwest Airlines Citizenship Executive Steering
The Southwest Airlines Citizenship Executive Group (CESG) provides input and guidance on social,
Steering Group (CESG) provides input
and guidance on social, economic, and
economic, and environmental topics.
environmental topics to the Company s CEO,
President, Chief Financial O cer, and Executive
Vice President of Corporate Services, all of
whom contribute to the Company s policy
development and decision-making e orts with
respect to these topics. The CESG meets regularly
and comprises O cers and Leaders from
Employee Experience new Employees, identifying moments that
matter to current Employees, and o boarding
various departments throughout the Company. To create the best possible work environment Employees leaving the Company.
The CESG considers feedback from various and continue our investment in human capital,
Stakeholders and works collaboratively with To create the best possible work environment,
Southwest seeks to provide a stable work
other executive steering groups to take a holistic we strive to provide our Employees with
environment with equal opportunity for learning
approach when considering social, economic, advanced notice of signi cant operational
and personal growth. We focus on bringing
and environmental topics. Other internal changes through proactive communication.
the best People into the Southwest Family by
groups that address CSR and ESG actions and For example, we provided notice to our
investing in human capital with a competitive
initiatives include our Social Topics Committee; Contract Employees (and their respective
total rewards package and providing on-the-job
Enterprise Risk Management Team; Diversity, Unions), as well as Noncontract Employees
training and encouragement to help Employees
Equity, and Inclusion Executive Steering Group; when we made operational changes to our
succeed. DEI has always been rooted in our
and Environmental Steering Group. ight schedule and policy updates related to
Company values, and we strive for our Employee
mask requirements, refund changes, enhanced
population to represent the diverse communities
Southwest s Enterprise Risk Management (ERM) aircraft cleaning procedures, and Customer and
we serve.
Team assists management in addressing the Employee health declarations as a result of the
Company s risk portfolio by collaborating with Employees are treated with the same concern, COVID-19 pandemic.
internal Stakeholders to identify, evaluate, and respect, and caring attitude within our
document risk and mitigation e orts. The ERM We implemented Company procedures that
organization that they are expected to share
Team conducts risk assessments, produces support and respect the protection of human
externally with every Southwest Customer.
internal reports, de nes risk focus areas, and rights within our sphere of in uence, and we
Our strategy for employment and labor practices
escalates critical risks to Executive Leadership. provided notice and training opportunities
is guided by our Executive Vice President
to our Employees on subjects like Human
Corporate Services, our People Department, and
Southwest is committed to continually improving Tra cking awareness. We recognize lawful rights
our Legal Department, which includes a section
the awareness and transparency of our of Employees to choose or not choose collective
devoted solely to Labor and Employee Relations.
governance of environmental and social topics. bargaining representation. Our approach focuses
Some of our recent e orts in this regard include: Our People Department s priorities include on negotiating labor agreements that achieve
(but are not limited to): attracting, developing, positive outcomes for our People and Company.
• Expanding disclosure of how our environmental
stewardship goals will be compatible with our and retaining a diverse, talented workforce;
long-term strategy providing opportunities for learning,
development, career growth, and movement Supply Chain
• Enhancing integration of diversity, equity,
within the Company; evaluating compensation
and inclusion (DEI) principles in our hiring To support our operation, we purchase goods
and bene ts, and rewarding performance;
and development practices to support goals as and services from nearly 4,000 sources across
investing in physical, emotional, mental, and
outlined in the People section of the One Report multiple continents and countries, but the
nancial health and well-being of Employees;
• Expanding governance reporting within the obtaining Employee feedback; maintaining majority of our supply base and spend is in
One Report s GRI General Disclosure section and enhancing Company Culture; and the U.S. domestic market since our network
communicating with the Board of Directors on footprint is primarily as a North American
The Board of Directors also recently updated its a routine basis on key topics, including Executive carrier. We maintain relationships directly with
Compensation Committee s Charter to re ect the succession planning. This work is carried out in various types of suppliers, including service
Compensation Committee s existing practice of collaboration with Southwest Airlines University providers, contractors, manufacturers, brokers,
assisting the Board of Directors with its oversight (SWA U); Culture & Engagement; and Diversity, and wholesalers.
of human resources policies and practices, Equity, & Inclusion Departments.
including the Company's DEI philosophy, We strive to provide Southwest with the highest
practices, and initiatives. We conduct Companywide surveys of our quality products and services at the lowest total
Employees throughout the year to assess their costs. While we have dedicated Teams within
Southwest believes in a sustainable future where job satisfaction. Survey feedback allows us to our Supply Chain Management Department,
a balance exists between protecting the world better improve our ability to attract, develop, such as Fuel Management, Aircraft Maintenance,
for future generations and serving the interests and retain Employees who will help us achieve Technology, and Enterprise Supply Chain, we
of our Shareholders, Employees, Customers, Southwest s business objectives. Our dedicated aim to manage our supply chain holistically and
and other Stakeholders, serving as good Employee Experience Team actively evaluates by utilizing analytically rigorous and dynamic
environmental stewards, fostering a creative and maps the Employee Experience to identify approaches to optimize system e ciency. Our
and innovative workforce, and giving back to opportunities to improve—such as onboarding Supply Chain Management Department monitors
the communities we serve.5 supplier performance, assesses risk and plans for
2020 Southwest Airlines One Report 7
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
As we say so long to a year full of the unexpected, let’s take a moment to reflect on
Rising to the 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 efforts while procuring and distributing various
Occasion forms of personal protective equipment and supplies. Our Employees’ flexibility,
determination, and tenacity will be forever etched into the history of our Company.
Fun
4,800,000+ fact:
We purchased
surgical masks enough gloves
distributed for the entire
population of Illinois
16,000
to receive a pair gallons
of hand
Fun sanitizer
purchased
BWI fact:
We distributed enough 13,600,000
masks that when lined pairs of gloves
FLL end to end reach as long purchased
44,500+
as our BWI-FLL flight labor hours
spent cleaning
tray tables and
other aircraft
surfaces
Fun 1,864 443,400+
labor hours spent on
between
flights
acrylic glass
fact: barriers
enhanced overnight
aircraft cleanings
The total area covered installed
by the acrylic glass
barriers that we 15,000+
installed is nearly gallons
the wing area of 7 Labor hours
Boeing 737s of facilities Fun spent cleaning
cleaning
products
fact: aircraft
translates into
422,000 more than
individual purchased
2 oz. bottles 3 round trips
of hand to Pluto on
sanitizer the spacecraft
purchased
for Employees New Horizons
2020 Southwest Airlines One Report 8
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
potential supply chain disruptions, and analyzes Veteran-owned, Service-Disabled Veteran-owned, Our Diversity, Equity, and Inclusion
our supply chain spend so we can continuously Minority-owned, Disabled-owned, and LGBT+- Department s vision is to cultivate a diverse
improve performance. owned. A diverse workforce, which includes and inclusive experience for all our People
our suppliers, helps keep Southwest strong to thrive—Employees, Customers, and
Southwest is committed to maintaining our and inspires unity. Partners. The department leads actions and
low-cost Leadership through e ective and measures to promote an inclusive Culture
e cient procurement practices and spending At Southwest, we understand that our business and environment by:
our capital wisely. All suppliers are treated impacts the markets we serve. We strive to
• Assisting with crafting the enterprise s
fairly and impartially during the evaluation positively a ect these communities by way of
DEI vision
and selection process. We use more than one our outreach and engagement initiatives to build
selection process, depending on Company longstanding relationships with our community • Leading strong communication e orts to build
requirements and supply market conditions. partners and suppliers. shared language, meaning, and understanding
Each selection process is focused on nding the
• Managing DEI as a strategic asset
best combination of quality, reliability, e ciency,
and service for Southwest at the lowest total cost. Diversity, Equity, • Auditing and monitoring equity
Internally, our Employees are expected to adhere • Tracking and assessing progress
to a Procurement Policy for Employees and we and Inclusion and improvements
expect all internal and external participants in
the procurement process to observe the highest Southwest recognizes, respects, and values • Reporting to the Board of Directors
standards of ethical conduct. We also have a di erences. By fostering a Culture that embraces • Championing informal and formal
supplier assessment questionnaire as a crucial and utilizes diversity, we promote Teamwork conversations and perspectives on DEI
part of the vetting process and expect suppliers and innovation that contributes to our overall
to comply with applicable laws, including those success. Since 1971, inclusion has always been Southwest is built on a network of relationships.
regarding child and/or forced labor. at the Heart of Southwest Airlines, utilizing Building diverse, equitable, and sustainable
diversity of thought and experience. As the relationships is a top priority. We believe our
Our e orts to respect and protect human rights underdog creating a new way to y, we needed DEI Promise is a key tool in nurturing inclusion.
also extends to our supply chain. We partner everyone and their point-of-view to make that
with our suppliers to have a positive impact with goal a reality. • It’s about Team: The collaboration of thoughts,
the products and equipment we use in the skies, backgrounds, and experiences helps us achieve
on the ground, and in our o ces. We seek to Southwest is committed to advancing diversity, our common goal as a Team
build sustainable relationships with our suppliers equity, and inclusion (DEI), and as we continue • It’s about value: Our Employees value
to help ful ll our operational needs, stimulate our journey, we will maintain our e orts to the ability to bring their authentic selves
economic growth in the communities we serve, cultivate a workforce and Leadership Team to to work each day while meeting our
support small and minority-owned businesses, re ect the diversity of the communities we serve. Southwest expectations
and satisfy the expectations of our Stakeholders. We will also support learning and development
e orts that are democratized and inclusive • It’s about respect: Our pride in Southwest
Our Supplier Diversity Program looks to build
of various career growth paths. Airlines fuels our unity. The respect we show
sustainable, diverse suppliers that are: Small,
our Fellow Employees matters to our work,
Small Disadvantaged, Women-owned, HUBZone,
our Team, and our Company
Southwest is committed to maintaining our low-cost Leadership through
e ective and e cient procurement practices and spending our capital wisely.
2020 Southwest Airlines One Report 9
About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Prior to 2020, we had been on a years-long
journey to advance DEI and build the cultural
competency of our organization. Key performance
indicators (KPIs) to track success of these e orts
came from DEI feedback tools and activities,
such as:
• Employee surveys
• DEI-focused “Pulse Point” intranet surveys
• Event attendance
• Participation in DEI training
We o er anonymity for Employees to share
if other Employees are not aligning to our
Company values. We are committed to
our DEI Promise, and we do not tolerate
discrimination, bullying, retaliation,
or harassment. to meet with Career Mobility Partners who Our Safety Management System (SMS) is
can direct them to speci c SWA U classes, the foundation that enables Southwest to
We have established a ve-year roadmap temporary opportunities, or interview operate safely. The SMS framework has four
with respect to our objectives, so that we can preparation techniques in order to increase main components: Safety Policy, Safety Risk
harness the power of diverse backgrounds diversity and vertical and lateral mobility for all Management, Safety Assurance, and Safety
and experiences that will contribute to our Southwest Employees. Promotion. Each of these components is woven
overall success. In 2021, we seek to continue into our processes and establishes the structure
to build a solid foundation and cultivate shared In 2019, Southwest Airlines partnered with for Safety at Southwest.
understanding among all Employees. As we Gallup® to launch CliftonStrengths, which
move forward, we strive to understand and allows Employees to discover their own Southwest s Safety Policy is re ected in our Safety
establish metrics to track results and progress strengths and helps them empower others to and Security Commitment. The commitment
that will feed the organizational expectation develop theirs. As of March 1, 2021, we have is a pledge of all Southwest Employees and
and provide solid results for feedback. introduced CliftonStrengths to nearly 90% of our Senior Leadership to the Safety and Security of
departments and plan to expand the program s our Customers and Employees—it establishes
reach to every Employee. clear Employee expectations and associated
Training and Southwest believes our focus on diversity training
accountability. Southwest Employees are
expected to demonstrate their commitment
Development enables enhanced Teamwork and innovation. to Safety by:
In 2020, we partnered with Mind Gym to launch
• Following Company policies and procedures
Southwest Airlines University (SWA U) provides a their Fearlessly Authentic curriculum, which
variety of training and curriculum options such as supports our commitment to foster an inclusive • Identifying anything that could cause damage
classroom training, distance learning, on-the-job environment where Employees embrace or injury
training, mentoring, and blended learning for di erences and feel a sense of belonging.
• Reporting hazards through Companywide
our Employees. We regularly evaluate skill sets
reporting tools
needed by our Employees to stay competitive in
an ever-changing, highly regulated environment. Occupational • Knowing and understanding our Safety
and Security Commitment
Traditionally, our Employees received the Health and Safety
majority of their training at our Dallas campus, Our operational processes incorporate
but our training approach shifted in 2020 due to Southwest Airlines Operational Philosophy participation from Employees to help identify,
the pandemic. SWA U launched the Southwest de nes key principles and expectations for develop, and implement procedural changes,
Learning Center in June to provide Leaders and Frontline Employees. Most importantly, and including those speci c to mitigating hazards.
Employees with a clean, simple catalog of virtual without compromise, we put Safety rst.
training opportunities—addressing both required Employees follow Company policies and The Safety Risk Management function of our SMS
training needs and optional curriculum. procedures designed to enable operations at provides a proactive, systemic, and standardized
an acceptable level of risk for Southwest. Next, process designed to identify hazards and
In 2020, we also launched Career Mobility and only after operating safely, we balance low risks to the operation and workplace before
as a centralized resource for our Employees cost and Reliability, all delivered with world-class they become injuries, accidents, or incidents.
to learn about the skills, experiences, and Hospitality. The Operational Philosophy provides Safety Risk Management is designed to mitigate
education needed for their next career step at a framework to operate safely, and in turn, risk through the implementation of e ective
Southwest. Career Mobility allows Employees position Southwest Airlines for success. risk 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.
2020 Southwest Airlines One Report 10About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Four Functions of Southwest's Safety Economic Impact
Management System (SMS) Jobs and bene ts, returns on investment,
business partnerships, and Customer Service
and Safety are all ways in which our economic
Safe performance matters to our Employees,
Safety Promotion ol
icy ty
R
Customers, Shareholders, suppliers, and the
isk
yP
Ma
Safet
Includes training, communication, and other communities in which we operate. We strive
nagement
actions that create a positive Safety Culture Safety
Promotion to continuously improve our Performance by
within all levels of the Company focusing on our Purpose, and our People are
Sa
f e ty e
dedicated to ful lling our Vision. Southwest is
A s s u ra n c known for a triple bottom line approach that
contributes to our Performance and productivity.
Employees share in Southwest s success with our
Pro tSharing Plan, the rst in the airline industry.
This approach helps us retain Employees,
Establishes our commitment Determines the need for, and Evaluates the continued reducing turnover costs. We expect our market
to continually improve Safety, adequacy of, new or revised effectiveness of risk controls presence to generate substantial savings
and defines the methods, risk controls based on the and supports the for our Customers through the well-known
processes, and organizational assessment of acceptable risk identification of new hazards Southwest E ect of invigorating competition
structure needed to meet our by reducing fares and stimulating additional
Company’s Safety goals passenger tra c in the cities where we y.
Our commitment to the Planet helps us
manage costs by using resources e ciently
Safety Safety Risk Safety and identifying emerging environmental trends
Management Assurance and risks. In the air, we strive to responsibly
Policy
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 s also good
for our bottom line. Regarding our position on
potential risks associated with climate change,
The Safety Assurance function of the SMS Partnership, and Florida Economic Development in our CDP (formerly the Carbon Disclosure
relies on data and analytics to continuously Council. We uniquely contribute to each Project) response, we identi ed risks associated
measure and analyze the e ectiveness of community focusing on gaps and opportunities with regulatory change and physical climate
risk controls and overall Safety performance. that will help drive economic, social, or risks like extreme weather events as having the
Southwest monitors Safety performance using environmental bene ts. potential to create operational complexities.
a variety of data including Employee reporting, These complexities may a ect airline operations,
aircraft information, Safety investigations, fatigue We provide life-changing transportation for which could result in impacts to operational and
programs, and audits. Using the data, we conduct families in need and medical professionals capital costs and ontime performance.
root cause analyses, execute audits, and perform during times of crisis, and humanitarian relief
procedural change analysis to recommend work cargo shipments that aid in life-saving e orts. Southwest has de ned contribution plans
process and equipment changes. We advance DEI through many of our e orts covering most of its Employees. The Company
and promote environmental stewardship sponsors Employee savings plans under
All areas of the SMS receive Companywide and through many conservation-focused projects. section 401(k) of the Internal Revenue Code
department-speci c Safety Promotion support, And we concentrate on building resilience in of 1986, as amended. The Southwest Airlines
which includes both training and communication the communities we serve by engaging in civic Co. 401(k) Plan includes Company matching
related to Safety. Southwest has developed and community partnerships and investing in contributions subject to limits speci ed by the
speci c job function training built around disaster preparedness, recovery and response, Board of Directors, the Internal Revenue Code,
comprehensive standards intended to provide and education. and applicable U.S. Treasury regulations, and
Employees the skills they need to operate safely. the Southwest Airlines Pilots Retirement Saving
We remain diligent in monitoring emerging Plan has non-elective Company contributions.
societal issues and topics. Our response to these In addition, the Company may contribute a
Community Outreach circumstances is based on a number of factors,
including the potential impact on our Employees,
percentage of its eligible pre-tax pro ts, as
de ned, on an annual basis to the Southwest
Southwest's Community Outreach e orts consist brand and reputation, business operations, Airlines Co. Pro tSharing Plan (Pro tSharing
of authentic civic and business relationships and Customers. Plan) a de ned contribution plan. No Employee
across the more than 100 communities within contributions to the Pro tSharing Plan are
the Southwest system. In 2020, we contributed We regularly review our annual community allowed. The amount associated with the
to 95 national, state, and local membership contributions and continue to evaluate their Company's de ned contribution plans expensed
organizations including, but not limited to, e ectiveness through impact reports and in 2020 was $561 million.
the U.S. Chamber of Commerce, Greater ongoing touchpoints with key partners and
Baltimore Committee, Downtown Denver Inc., Stakeholders. We regularly solicit reports and Additionally, the Company provides
Dallas Regional Chamber of Commerce, Hawaii metrics from our Partners and we continue to post-retirement bene ts to quali ed Retirees
Lodging and Tourism Association, Los Angeles hone our own reporting process to further re ne in the form of medical and dental
Area Chamber of Commerce, Greater Houston our overall citizenship progress and results. coverage. Employees must meet service
2020 Southwest Airlines One Report 11About the One Report People Performance Planet GRI Index SASB Index UN SDGs
and age requirements as set forth by the
Company, or as speci ed in collective
Act provided a temporary tax holiday from
collecting and remitting certain government
Environmental Commitment
bargaining agreements with speci c workgroups. ticket taxes for tickets purchased between We have evaluated and implemented ways we
Employees meeting these requirements, as March 28, 2020 and Dec. 31, 2020. can improve environmental stewardship. We have
de ned, may use accrued unused sick time aggressive e orts in place to reduce emissions
to pay for medical and dental premiums from Our market presence and low fares are designed intensity, manage waste, use fuel more e ciently,
the age of retirement until age 65. All medical to stimulate economies in cities where we y. and repurpose materials to minimize impact on
plans are unfunded, and Southwest pays We also make investments in infrastructure land lls. This includes:
bene ts as they become due. Estimated future and services that more broadly a ect the • Partnering with organizations such as Red Rock
post-retirement bene t payments expected to communities we serve in terms of jobs, access Biofuels and the Department of Energy's National
be paid are $24 million in 2021, $25 million in to services, or other impacts. By working with Renewable Energy Laboratory (NREL) to support
2022, $24 million in 2023, $24 million in 2024, local communities and regulators, we strive sustainable aviation fuel (SAF) development
$26 million in 2025, and $146 million for the to maximize our total investments to bene t and production
next ve years thereafter.6 Learn more about and enhance local and regional economies.
our post-retirement bene ts on page 143 of To steward our resources responsibly, we • Returning the Boeing 737 MAX 8 to service,
the Company's 2020 Annual Report. regularly review our annual investments and our most fuel e cient aircraft
continue to evaluate their e ectiveness through • Expanding our Boeing order book through 2031,
As a result of the COVID-19 pandemic, the impact reports and ongoing touchpoints with including 100 additional Boeing MAX 7 aircraft,
Company entered into de nitive documentation key Partners and Stakeholders. which are expected to replace less fuel-e cient
with the United States Department of Treasury Boeing 737-700 aircraft
(the Treasury) with respect to funding support
pursuant to the Payroll Support Program Environmental • Continuing ongoing work of our Repurpose with
Purpose program, which diverts materials and
(Payroll Support) under the Coronavirus Aid,
Relief and Economic Security Act (CARES Act). Stewardship items traditionally destined for land lls while
During 2020, the Company received a total of generating social and economic opportunities
$3.4 billion of relief funds under the CARES We recognize the importance of environmental for communities
Act. As consideration for the Payroll Support, stewardship and believe it s our responsibility
the Company issued a promissory note (the to protect our Planet now and for future During 2020, Employees from across the Company
Note) in favor of the Treasury and entered generations. We do our part to make reviewed existing plans and developed new ideas
into a warrant agreement with the Treasury environmentally responsible decisions; to strengthen our environmental commitment:
(the Warrant Agreement), pursuant to which minimize our environmental impact by • Focusing on the goal of carbon neutrality by
the Company agreed to issue warrants (each, collecting and analyzing information on our 2050 and are looking to incorporate more
a Warrant) to purchase common stock of the energy consumption, emissions, and waste; Sustainable Aviation Fuel (SAF) partners and
Company to the Treasury. During 2020, the and improve the actions we take to mitigate introduce carbon o setting into our operation8
Company provided a Note in the aggregate our impacts.
• Improve our owned facilities
amount of $976 million and issued Warrants
In 2020, a third-party assessment of Southwest s environmental footprint
valued at a total of $40 million to purchase up
to an aggregate of 2.7 million shares of the greenhouse gas (GHG) emissions inventory • Create a sustainable in ight experience for
Company's common stock, subject to adjustment was completed in accordance with the AA1000 our Customers
pursuant to the terms of the Warrants. Pursuant Assurance Standard. This assurance engagement
included our Scope 1, Scope 2, and Scope 3 • Continue our work with a variety of organizations,
to the terms of the Payroll Support Program
GHG emissions.7 nonpro ts, and government entities, including
agreement and the CARES Act, the Payroll
Airlines for America (A4A), whose work
Support funds could only be utilized to pay
As of Dec. 31, 2020, we are meeting our GHG complements our e orts to advance our
qualifying salaries, wages, and bene ts, as
emissions targets without using carbon o sets. environmental commitment
de ned in the CARES Act. In addition, the CARES
• Invite individual and Corporate Customers to
participate in any future carbon o set program
Environmental Compliance
Maintaining compliance with local, state,
and federal environmental laws and regulations
We recognize is fundamental to our environmental policy.
We continually work to meet our annual goal
the importance of zero recorded environmental violations.
of environmental Our Environmental Services Team regularly
conducts audits to review compliance, and works
stewardship and believe to improve our performance by utilizing our
environmental management system (EMS),
it’s our responsibility following environmental guidelines and procedures,
implementing corrective action, and training our
to protect our Employees to meet our compliance goals.
Planet now and for Our standard auditing protocol assesses
future generations. a location s recordkeeping permit status,
and compliance with requirements of
regulatory plans such as Storm Water Pollution
2020 Southwest Airlines One Report 12About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Prevention Plans, Spill Prevention Control, and
Countermeasure Plans. We perform a visual
walk-through inspection to con rm that key
compliance practices are enacted in each of the
cities we serve. At all of our locations, we also
track spills, audit ndings 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 e ort to maintain compliance with
environmental regulations, minimize costs and
risk, and measure our e orts to improve our
environmental performance. Southwest s Leaders
and Employees are also responsible for:
• Auditing our environmental vendors to range of policymakers and Stakeholder groups In 2020, contributions from the Freedom Fund
verify their operations are compliant, directly. We also present our views on these totaled $145,000 to political committees at the
and they demonstrate a commitment to topics through trade associations, chambers federal level and $23,500 to political committees
environmental stewardship of commerce, and interactions with public at the state and local levels. Moreover, the
• Continuing to improve our performance o cials at the federal level and in the states Company contributed $2,000 directly to political
for reducing GHG emissions intensity and communities we serve. campaigns at the state and/or local level in one
state (California). In 2020, the Company did
• Providing transparency of our environmental One trade association in which we participate not support or nance any state or local ballot
performance to our Stakeholders through is Airlines for America (A4A), which allows us measure before voters. At the federal level, no
public reporting and third-party veri cation to gain insight into core issues for the airline Company funds were used to support or nance
and assurance of our GHG emissions inventory industry as a whole and to advocate jointly for any political campaign, nor did the Company
regulations that support a healthy, competitive support or nance any so-called Super PACs
industry. We also bene t from the opportunity or any political committees organized under
Sustainable Aviation to share technical expertise and operational section 527 of the Internal Revenue Code.
Fuel (SAF) knowledge that leads to improved margins The Company made no contributions to a
Given that fuel is one of our largest expenses of Safety and Security, greater Employee and politically-a liated 501(c)(4) organization
and the burning of it produces GHG emissions, Customer Satisfaction, and better overall in 2020.
we strive to reduce future emissions while operational e ciency and Reliability.
continuing to provide safe, reliable, and In 2020, A4A, our airline industry trade
a ordable air transportation for our Customers. Southwest has adopted a policy that it will association, determined that $931,559 of the
primarily use its a liated political action total dues paid by the Company to A4A were
Southwest commits to explore environmental committee, the Southwest Airlines Co. nondeductible lobbying expenses. Southwest
policies and practices of potential sustainable Freedom Fund (Freedom Fund), nanced by also paid dues to several other national, state,
aviation fuel suppliers, speci cally with respect to voluntary Employee contributions, to support and local trade associations, and chamber
mitigating deforestation and forest degradation political campaigns. Company funds will be organizations, in which a portion of those
in the production of sustainable aviation fuels. limited to supporting selected political dues were used by these organizations for
campaigns at the state and local level in nondeductible lobbying activities. However,
compliance with the laws of the relevant states in all cases, that portion was not more than
E uents and Waste and localities. We hold in high regard the $1,500 annually for each organization.
responsibility of managing the Freedom Fund
While these topics are outside the boundary
and being good stewards of our Employees
of key topics for Southwest, we continue to
hard-earned dollars. We have a time-tested
report on our waste and recycling e orts as
evaluation process when considering Freedom
they minimize our environmental impact by:
Fund contribution requests and our criteria for
• Conserving natural resources, including giving are evaluated annually. Additionally, the
e cient water and raw materials criteria, as well as all political campaign
use, while continuing to meet our contributions from the Freedom Fund or by the
operational requirements Company directly, are approved by the Senior
• Minimizing waste and pollution from our Vice President of Governmental A airs and Real
operations and preventing it where possible, Estate, and overseen by Southwest s Executive
while remaining true to the triple bottom line Vice President, Chief Legal and Regulatory
of People, Performance, and Planet O cer, with an annual summary of those
contributions provided to the Southwest Board of
Directors. All political contributions are intended
Public Policy to promote the interests of the Company and are How We Support
not guided by any private political preferences of
Legislative and regulatory changes have the any Employee. All contributions by the Freedom the Global Goals
potential to limit our opportunities for growth, Fund are disclosed via publicly available reports
and government policies and legislation led monthly with the Federal Election
can have a deep impact on how we do Commission. The Company strives to comply with Read more
business. Our Governmental A airs Team all applicable federal, state, and local campaign
works to stay on top of proposed statutory nance restrictions and disclosure requirements.
and regulatory changes and to educate a wide
2020 Southwest Airlines One Report 13About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Putting People First
As you read through this section of the One Report, you might notice that we talk a lot about
our People. When we say our People, 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 d experience as part of the Southwest Team. So when we say our People,
you ll know what we mean: we re a Company of our People, focused on serving our People.
Enhanced DEI Southwest
Promise $3 million
Commitment Provided more than $3 million in
Successfully launched the Southwest
Evolved our hiring and development support to help those affected by
Promise, supporting the health and
practices to support newly established the COVID-19 pandemic
well-being of our Customers and Employees
diversity objectives
during the COVID-19 pandemic
Employees p15 Customers p21 Communities p23 People Data Table p27
2020 Southwest Airlines One Report 14About the One Report People Performance Planet GRI Index SASB Index UN SDGs
KEY TOPIC
STORIES
Employees Employee COVID-19
Response
Over the years, we ve seen how treating our Employees well does good things
for the rest of our business. We provide them with great jobs and bene ts, and
Deepening Our
a world-famous Culture where they are encouraged to draw on their unique Commitment to
perspectives, skills, and experiences in their day-to-day jobs. Because authentic, Diversity, Equity,
empowered Employees make great ambassadors, and that positively a ects and Inclusion (DEI)
Customers, the world around us, and the success of our business. It s no wonder
we ve always said Employees are the Heart of Southwest. Sharing Our
Company Values
Employee COVID-19 Response UN SDG Alignment GRI Index
403-2
403-3
Southwest has a longstanding dedication to preparedness and emergency 403-4
403-5
response. As part of our preparedness mission, we provide resources to plan for 404-2
and respond to emergency events with con dence and compassion to care for
our Employees, Customers, and communities.
Throughout the years, our proactive planning and readiness and entertainment events to restaurants and (of course) airlines.
has helped us handle many kinds of emergencies. We have Following the rst reports of possible COVID-19 cases in the U.S.
Emergency Response Plans in place for aircraft accidents, in January 2020, Southwest pulled together a Disaster Response
weather disruption events, natural disasters, terrorism, and Team and began to coordinate with the U.S. Centers for Disease
infectious disease outbreaks. While we never wish to enact such Control and Prevention (CDC) and other health organizations
plans, knowing we have them in place gives us peace of mind to develop a plan for how to best protect our Employees
and helps us respond quickly in emergency situations like the and Customers.9
COVID-19 pandemic.
Throughout the pandemic, the Team has diligently met and stayed
It s no secret COVID-19 brought the travel and tourism industry in touch with government entities, and we continue to evaluate
to a standstill and a ected every related business from hotels our policies and procedures based on public health guidance,
2020 Southwest Airlines One Report 15About the One Report People Performance Planet GRI Index SASB Index UN SDGs
scienti c 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 distancing.
As the pandemic is ever-evolving, the entire Southwest Team
has tirelessly responded and adapted.
our People are always eager to make a di erence, and many
Keeping Our Employees Informed asked the question, “How can I help the Company during these
times?” Thousands upon thousands of our Employees stepped
Throughout the COVID-19 pandemic, Southwest has continued
up to help Southwest weather this storm. Whether it was
to monitor information from the CDC and partner with medical
sharing and executing cost-saving ideas, helping ll needs in
experts to make informed decisions. We want our Employees to
other departments, or sharing information about the Southwest
be equipped with accurate and timely information to perform
Promise with friends and families to encourage travel, our
their jobs safely while exhibiting the warm Southwest Hospitality
Employees were there to help.
for which we are known. To keep our Employees informed in the
face of a constantly evolving situation, we regularly communicate
Another way our Employees supported Southwest was by
with all of our Employees via internal communication channels
participating in di erent voluntary programs, like the Voluntary
like SWALife (our internal intranet) and other department-
Separation Program 2020 (VSP). This option provided departure
speci c channels.
packages for Employees who wished to permanently separate
from the Company. We also o ered eligible Employees the
In addition to his longstanding weekly podcast, our Chairman
opportunity to take Extended Emergency Time O (ExTO).
and CEO Gary Kelly issued more than 50 video messages to
Approximately 15,000 Employees, representing 25% of our
our Employees in 2020, providing updates from the very top on
workforce, participated in one of these voluntary programs.
the situation at hand, explaining the reasons for newly adopted
These crucial programs reduced our annual 2020 salaries, wages,
operating procedures, and providing strategic business updates.
and bene ts expense by approximately $565 million.
This informative communication format is one we are still
producing for our Employees today.
Many Employees who couldn t take 6, 12, or 18 months through
ExTO could still consider taking a calendar month of Emergency
All Hands on Deck Approach Time O , or ETO. With ETO, Employees maintained bene ts not
typically o ered during a leave of absence (e.g., Travel Privileges).
Part of weathering the COVID-19 pandemic has entailed In addition, Time O Without Pay (TOWOP) and Leave Without
keeping our costs low as we wait for travel demand to recover. Pay (LWOP) could be taken in smaller time increments. Between
Southwest has proudly avoided furloughs in its nearly 50-year March and December 2020, the ETO, TOWOP, and LWOP
history—an astonishing feat in and of itself that was thanks in programs accounted for a savings of approximately $265 million.
part to the passing of the Federal Government's Payroll Support The voluntary e orts many Employees chose, like ETO, ExTO,
Program (PSP) extension in December 2020, and the hard LWOP, TOWOP, and the VSP, helped tremendously to adjust
work of our Employees. As a result of the PSP extension, we do sta ng in light of the reduced travel demand.
not anticipate the need to conduct any furloughs or pay cuts
during 2021.10 We re a Family at Southwest, so seeing the largest departure
of Employees at one time in our history due to VSP was tough,
Avoiding furloughs in 2020 can largely be attributed to our but it was the right option to o er. We were grateful to have
incredible Employees. Our Employees redoubled their e orts to the resources to o er our People the most generous voluntary
cut non-essential spending and reduce costs and were excited program in our history, even in these di cult times. Our Hearts
to try new ideas, such as o ering cargo-only charter ights will always be with those Employees who helped Southwest by
for the rst time in Company history. In true Southwest Spirit, taking the VSP; they will forever be a part of the Southwest Family.
2020 Southwest Airlines One Report 16About the One Report People Performance Planet GRI Index SASB Index UN SDGs
Going Virtual nonpro t organization has its own Board that consists of
Employees from across our Company. This Board reviews
Starting in March, many of our Corporate Campus and applications for nancial assistance and since its inception has
Customer Support and Services Employees began working awarded more than $15 million to Employees and their families
remotely. Internally, this required some quick adjustments to in need. The bulk of SWAECAC s nancial support is thanks to
implement an updated work from home setup and platform the generosity of Employee contributions, private donations,
so our Employees had the right tools and resources to do their department fundraisers and events, and various other fundraisers
jobs. Many departments, workgroups, and Teams pivoted from throughout the year—really making it an initiative that supports
in-person events and activities to virtual. From department–wide Employees, by Employees.
meetings to Team celebrations, many of our Employees embraced
the opportunity to utilize technology and get together virtually to In May 2020, the COVID-19 pandemic continued to cause
stay connected during this time! unexpected hardships for many people around the world,
including some of our Employees and their immediate families.
Southwest Airlines University (SWA U), which provides training In response, SWAECAC made a COVID-19-speci c grant relief
and development opportunities for all Employees, also had to opportunity available for our Employees. The purpose of the
quickly pivot how it supports our Employees. Like many public grant was to provide support due to loss of income as a result
schools and universities around the country, we canceled of the economic e ects of the pandemic and to help o set related
in-person classes and transitioned to a virtual learning model— nancial hardships. Applicants were required to substantiate
all in a matter of days. Topics traditionally taught in a classroom pandemic-related hardship for example, nancial strain due
are now available online. Additionally, a wider range of learning to loss of employment or furlough of a spouse/partner.
content is now immediately accessible, providing a more e cient
experience than traditional in-person o erings as Employees can The Charity continued to accept and review the standard
now complete the curriculum on their own time. applications for Personal Hardship, Disaster Assistance, and
Natural Disaster Urgent Assistance. COVID-19 relief was just an
additional way Employees could seek supplemental support
Employees Supporting Employees during these trying times. In August, the Charity also transitioned
to an online application process, helping improve both the
Since its inception in 1990, the Southwest Airlines Employees
application experience for Employees and operational e ciencies
Catastrophic Assistance Charity (SWAECAC, or the Charity) has
of the Charity. Over the course of 2020, the SWAECAC awarded
o ered support to countless Employees su ering nancial
more than $489,000 in grants to support our Southwest Family
hardships resulting from a catastrophic event in their lives.
in need.
Operating as a separate entity from Southwest, this 501(c)(3)
Southwest COVID-19 2020 Event Timeline
• Southwest began • Disaster Response Plan activation • Launched the Southwest Promise • Launched a • Began collaborating with • PSP extension
COVID-19 • International service halted • Announced that face coverings self-declaration health Stanford University School of passed
communication • Inflight service changes launched would be required along with form for our Employees Medicine and Harvard • Seat blocking
to Employees • Flight schedule reductions began updated physical distancing and • Science-based decision to directive ended
• Emergency Time Off launched boarding procedures resume selling all available seats
• COVID-19 was declared a pandemic for travel beginning Dec. 1
• Began collaborating with UT
Southwestern Medical Center (UTSW)
2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021
• Southwest participated in Payroll Support Program (PSP) • Announced voluntary • Modified our • Continued to lobby in
• Launched seat blocking directive separation and extended inflight service Washington, D.C. on behalf of
• Began enhanced cleaning and temperature leave programs our Company and Employees
screening at Southwest facilities • Introduced the Customer for the PSP extension
• Began using electrostatic disinfectant Health Declaration
spray in our cleaning procedures
2020 Southwest Airlines One Report 17You can also read
